Question 1

Match between columns
                        Premises: A ratio that is used to help evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities.
Long-term resources that benefit business operations, usually lack physical form, and have uncertain benefits.
The owner's claim on the assets of a company.
Obligations due to be paid or settled within one year or the operating cycle of a business, whichever is longer.
A balance sheet that broadly groups items into assets, liabilities and equity.
Cash and other resources that are expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer.
A balance sheet that organizes the assets and liabilities into important subgroups that provide more information to decision makers.
Tangible assets that are long-lived and used to produce or sell products or services.
Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Assets that are held for more than the longer of one year or the operating cycle of the company and are not used in operations.

Accepted Answer

The Answer of Closing entries and Intangible assets and Long-term is...

Question 2

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Accepted Answer

A) True 
 B)False

Question 3

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

Accepted Answer

A) True 
 B)False

Question 4

Describe a work sheet and explain why it is useful.

Accepted Answer

A work sheet is a useful tool that prepa

Question 5

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:

Accepted Answer

A) $200 of prepaid insurance. 
B) $200 difference between the debit and credit columns of the Unadjusted Trial Balance. 
C) An error in the financial statements. 
D) $200 decrease in net income. 
E) $200 increase in net income. 
A) $200 of prepaid insurance. 
B) $200 difference between the debit and credit columns of the Unadjusted Trial Balance. 
C) An error in the financial statements. 
D) $200 decrease in net income. 
E) $200 increase in net income.

Question 6

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 7

The Income Summary account is used to:

Accepted Answer

A) Determine the appropriate withdrawal amount. 
B) Adjust and update asset and liability accounts. 
C) Replace the capital account in some businesses. 
D) Replace the income statement under certain circumstances. 
E) Close the revenue and expense accounts. 
A) Determine the appropriate withdrawal amount. 
B) Adjust and update asset and liability accounts. 
C) Replace the capital account in some businesses. 
D) Replace the income statement under certain circumstances. 
E) Close the revenue and expense accounts.

Question 8

List and explain the steps in preparing a 10-column worksheet.

Accepted Answer

1. Enter the unadjusted trial balance. L

Question 9

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

Accepted Answer

A) True 
 B)False

Question 10

The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the F. Mercury, Capital account after all closing entries are made?

Accepted Answer

A) $28,000. 
B) $35,400. 
C) $52,400. 
D) $37,000. 
E) $43,400. 
A) $28,000. 
B) $35,400. 
C) $52,400. 
D) $37,000. 
E) $43,400.

Question 11

Which of the following is the usual final step in the accounting cycle?

Accepted Answer

A) Preparing a post-closing trial balance. 
B) Preparing the financial statements. 
C) Journalizing transactions. 
D) Preparing a work sheet. 
E) Preparing an adjusted trial balance. 
A) Preparing a post-closing trial balance. 
B) Preparing the financial statements. 
C) Journalizing transactions. 
D) Preparing a work sheet. 
E) Preparing an adjusted trial balance.

Question 12

Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company: $\begin{array}{|l|r|l|}
\hline \text { Account Title } & \text { Dr. } & \text { Cr. } \
\hline \text { Cash } & \$ 23,000 & \
\hline \text { Accounts receivable } & 16,000 & \
\hline \text { Prepaid insurance } & 6,600 & \
\hline \text { Equipment } & 100,000 & \
\hline \text { Accumulated Depreciation-Equipment } & & \$ 50,000 \
\hline \text { Land } & 95,000 &\\hline \text { Accounts payable } & & 17,000 \
\hline \text { Interest payable } & & 2,400 \
\hline \text { Unearned revenue } & & 5,000 \
\hline \text { Long-term notes payable } & & 30,000 \
\hline \text { Z. Taron, Capital } & & 136,200 \
\hline \text { Totals } & \$ 240,600 & \$ 240,600 \\hline
\end{array}$

Accepted Answer

A) $45,600. 
B) $21,200. 
C) $41,200. 
D) $95,600. 
E) $24,400. 
A) $45,600. 
B) $21,200. 
C) $41,200. 
D) $95,600. 
E) $24,400.

Question 13

Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

Accepted Answer

A) True 
 B)False

Question 14

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Accepted Answer

A) Accounts Payable. 
B) Prepaid Insurance. 
C) Unearned Revenue. 
D) Land. 
E) S. Stills, Withdrawal. 
A) Accounts Payable. 
B) Prepaid Insurance. 
C) Unearned Revenue. 
D) Land. 
E) S. Stills, Withdrawal.

Question 16

Closing the temporary accounts at the end of each accounting period does all of the following except:

Accepted Answer

A) Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet. 
B) Prepares the withdrawals account for use in the next period. 
C) Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals. 
D) Brings the revenue and expense accounts to zero balances. 
E) Has no effect on the owner's capital account. 
A) Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet. 
B) Prepares the withdrawals account for use in the next period. 
C) Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals. 
D) Brings the revenue and expense accounts to zero balances. 
E) Has no effect on the owner's capital account.

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

Describe a work sheet and explain why it is useful.

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

The Income Summary account is used to:

List and explain the steps in preparing a 10-column worksheet.

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the F. Mercury, Capital account after all closing entries are made?

Which of the following is the usual final step in the accounting cycle?

Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Closing the temporary accounts at the end of each accounting period does all of the following except:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Filters

Exam 4: Completing the Accounting Cycle

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

Describe a work sheet and explain why it is useful.

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

The Income Summary account is used to:

List and explain the steps in preparing a 10-column worksheet.

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the F. Mercury, Capital account after all closing entries are made?

Which of the following is the usual final step in the accounting cycle?

Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Closing the temporary accounts at the end of each accounting period does all of the following except:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Filters