Question 1

A current asset is

Accepted Answer

A) the last asset purchased by a business. 
B) an asset which is currently being used to produce a product or service. 
C) usually found as a separate classification in the income statement. 
D) an asset that a company expects to convert to cash or use up within one year. 
A) the last asset purchased by a business. 
B) an asset which is currently being used to produce a product or service. 
C) usually found as a separate classification in the income statement. 
D) an asset that a company expects to convert to cash or use up within one year.

Question 2

In order to close the Dividends account, the

Accepted Answer

A) income summary account should be debited. 
B) income summary account should be credited. 
C) retained earnings account should be credited. 
D) retained earnings account should be debited. 
A) income summary account should be debited. 
B) income summary account should be credited. 
C) retained earnings account should be credited. 
D) retained earnings account should be debited.

Question 3

Intangible assets are customarily the first items listed on a classified statement of financial position.

Accepted Answer

A) True 
 B)False

Question 4

Current liabilities are obligations that the company is to pay within the coming year.

Accepted Answer

A) True 
 B)False

Question 5

The balance in the income summary account before it is closed will be equal to

Accepted Answer

A) the net income or loss on the income statement. 
B) the beginning balance in the retained earnings account. 
C) the ending balance in the retained earnings account. 
D) zero. 
A) the net income or loss on the income statement. 
B) the beginning balance in the retained earnings account. 
C) the ending balance in the retained earnings account. 
D) zero.

Question 6

The post-closing trial balance contains only

Accepted Answer

A) income statement accounts. 
B) statement of financial position accounts. 
C) statement of financial position and income statement accounts. 
D) income statement, statement of financial position, and equity statement accounts. 
A) income statement accounts. 
B) statement of financial position accounts. 
C) statement of financial position and income statement accounts. 
D) income statement, statement of financial position, and equity statement accounts.

Question 7

Which of the following permanent account is changed during the closing process?

Accepted Answer

A) Share Capital-ordinary. 
B) Retained Earnings. 
C) Unearned Revenue. 
D) None of the above. 
A) Share Capital-ordinary. 
B) Retained Earnings. 
C) Unearned Revenue. 
D) None of the above.

Question 8

Closing entries are made

Accepted Answer

A) in order to terminate the business as an operating entity. 
B) so that all assets, liabilities, and equity accounts will have zero balances when the next accounting period starts. 
C) in order to transfer net income (or loss) and dividends to Retained Earnings . 
D) so that financial statements can be prepared. 
A) in order to terminate the business as an operating entity. 
B) so that all assets, liabilities, and equity accounts will have zero balances when the next accounting period starts. 
C) in order to transfer net income (or loss) and dividends to Retained Earnings . 
D) so that financial statements can be prepared.

Question 9

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

Accepted Answer

A) True 
 B)False

Question 10

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Accepted Answer

A) analyzing transactions. 
B) journalizing and posting adjusting entries. 
C) preparing a post-closing trial balance. 
D) posting to ledger accounts. 
A) analyzing transactions. 
B) journalizing and posting adjusting entries. 
C) preparing a post-closing trial balance. 
D) posting to ledger accounts.

Question 11

Closing entries are journalized after adjusting entries have been journalized.

Accepted Answer

A) True 
 B)False

Question 12

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 13

The information for preparing a trial balance on a worksheet is obtained from

Accepted Answer

A) financial statements. 
B) general ledger accounts. 
C) general journal entries. 
D) business documents. 
A) financial statements. 
B) general ledger accounts. 
C) general journal entries. 
D) business documents.

Question 14

Which of the following would not be classified a Non-current liability?

Accepted Answer

A) Current maturities of long-term debt 
B) Bonds payable 
C) Mortgage payable 
D) Lease liabilities 
A) Current maturities of long-term debt 
B) Bonds payable 
C) Mortgage payable 
D) Lease liabilities

Question 15

Both correcting entries and adjusting entries always affect at least one statement of financial position account and one income statement account.

Accepted Answer

A) True 
 B)False

Question 16

What are total current liabilities at December 31, 2011?

Accepted Answer

A) ¥18,000 
B) ¥70,000 
C) ¥88,000 
D) ¥0 
A) ¥18,000 
B) ¥70,000 
C) ¥88,000 
D) ¥0

Question 17

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2011:
 
What is the book value of the equipment at December 31, 2011?

Accepted Answer

A)   ¥ 218,000 
B)   ¥ \geq 190,000 
C)   ¥ 162,000 
D)   ¥ 150,000 
A)   ¥ 218,000 
B)   ¥ \geq 190,000 
C)   ¥ 162,000 
D)   ¥ 150,000

Question 18

A business entity has only one accounting cycle over its economic existence.

Accepted Answer

A) True 
 B)False

Question 19

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

Accepted Answer

A) debit to Retained Earnings. 
B) debit to Dividends 
C) credit to Retained Earnings. 
D) credit to Dividends. 
A) debit to Retained Earnings. 
B) debit to Dividends 
C) credit to Retained Earnings. 
D) credit to Dividends.

Question 20

The income statement for the year 2011 of Poole Co.contains the following information:   The entry to close Income Summary to Retained Earnings includes

Accepted Answer

A) a debit to Revenue for $70,000. 
B) credits to Expenses totalling $73,500. 
C) a credit to Income Summary for $3,500. 
D) a credit to Retained Earnings for $3,500. 
A) a debit to Revenue for $70,000. 
B) credits to Expenses totalling $73,500. 
C) a credit to Income Summary for $3,500. 
D) a credit to Retained Earnings for $3,500.

A current asset is

In order to close the Dividends account, the

Intangible assets are customarily the first items listed on a classified statement of financial position.

Current liabilities are obligations that the company is to pay within the coming year.

The balance in the income summary account before it is closed will be equal to

The post-closing trial balance contains only

Which of the following permanent account is changed during the closing process?

Closing entries are made

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Closing entries are journalized after adjusting entries have been journalized.

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

The information for preparing a trial balance on a worksheet is obtained from

Which of the following would not be classified a Non-current liability?

Both correcting entries and adjusting entries always affect at least one statement of financial position account and one income statement account.

What are total current liabilities at December 31, 2011?

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2011: What is the book value of the equipment at December 31, 2011?

A business entity has only one accounting cycle over its economic existence.

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

The income statement for the year 2011 of Poole Co.contains the following information: The entry to close Income Summary to Retained Earnings includes

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Payroll Accounting

Other Significant Liabilities

Filters

Exam 4: Completing the Accounting Cycle

A current asset is

In order to close the Dividends account, the

Intangible assets are customarily the first items listed on a classified statement of financial position.

Current liabilities are obligations that the company is to pay within the coming year.

The balance in the income summary account before it is closed will be equal to

The post-closing trial balance contains only

Which of the following permanent account is changed during the closing process?

Closing entries are made

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Closing entries are journalized after adjusting entries have been journalized.

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

The information for preparing a trial balance on a worksheet is obtained from

Which of the following would not be classified a Non-current liability?

Both correcting entries and adjusting entries always affect at least one statement of financial position account and one income statement account.

What are total current liabilities at December 31, 2011?

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2011: What is the book value of the equipment at December 31, 2011?

A business entity has only one accounting cycle over its economic existence.

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

The income statement for the year 2011 of Poole Co.contains the following information: The entry to close Income Summary to Retained Earnings includes

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Payroll Accounting

Other Significant Liabilities

Filters