Question 1

Most companies that follow IFRS present balance sheet (statement of financial position) information in this order:

Accepted Answer

A) current assets; investments; property, plant and equipment; intangible assets; current liabilities; long term liabilities; equity. 
B) intangible assets; property, plant and equipment; investments; current assets; current liabilities; equity; long term liabilities. 
C) current assets; noncurrent assets; current liabilities; noncurrent liabilities; equity. 
D) noncurrent assets; current assets; equity; noncurrent liabilities; current liabilities.
IFRS. 
A) current assets; investments; property, plant and equipment; intangible assets; current liabilities; long term liabilities; equity. 
B) intangible assets; property, plant and equipment; investments; current assets; current liabilities; equity; long term liabilities. 
C) current assets; noncurrent assets; current liabilities; noncurrent liabilities; equity. 
D) noncurrent assets; current assets; equity; noncurrent liabilities; current liabilities.
IFRS.

Question 2

Under IFRS and under GAAP, current assets are listed in   IFRS.

Accepted Answer

Question 3

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

Accepted Answer

A) True 
 B)False

Question 4

Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000.The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31.

Accepted Answer

Question 5

If a company utilizes reversing entries, they will

Accepted Answer

A) be made at the beginning of the next accounting period. 
B) not actually be posted to the general ledger accounts. 
C) be made before the post-closing trial balance. 
D) be part of the adjusting entry process. 
A) be made at the beginning of the next accounting period. 
B) not actually be posted to the general ledger accounts. 
C) be made before the post-closing trial balance. 
D) be part of the adjusting entry process.

Question 6

Liabilities are generally classified on a balance sheet as

Accepted Answer

A) small liabilities and large liabilities. 
B) present liabilities and future liabilities. 
C) tangible liabilities and intangible liabilities. 
D) current liabilities and long-term liabilities. 
A) small liabilities and large liabilities. 
B) present liabilities and future liabilities. 
C) tangible liabilities and intangible liabilities. 
D) current liabilities and long-term liabilities.

Question 7

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021:   The current assets should be listed on Gray's Postal Service's balance sheet in the following order:

Accepted Answer

A) cash, accounts receivable, prepaid insurance, equipment. 
B) cash, prepaid insurance, supplies, accounts receivable. 
C) cash, accounts receivable, prepaid insurance, supplies. 
D) equipment, supplies, prepaid insurance, accounts receivable, cash. 
A) cash, accounts receivable, prepaid insurance, equipment. 
B) cash, prepaid insurance, supplies, accounts receivable. 
C) cash, accounts receivable, prepaid insurance, supplies. 
D) equipment, supplies, prepaid insurance, accounts receivable, cash.

Question 8

A post-closing trial balance is prepared

Accepted Answer

A) after closing entries have been journalized and posted. 
B) before closing entries have been journalized and posted. 
C) after closing entries have been journalized but before the entries are posted. 
D) before closing entries have been journalized but after the entries are posted. 
A) after closing entries have been journalized and posted. 
B) before closing entries have been journalized and posted. 
C) after closing entries have been journalized but before the entries are posted. 
D) before closing entries have been journalized but after the entries are posted.

Question 9

The worksheet does not show

Accepted Answer

A) net income or loss for the period. 
B) revenue and expense account balances. 
C) the ending balance in the retained earnings account. 
D) the trial balance before adjustments. 
A) net income or loss for the period. 
B) revenue and expense account balances. 
C) the ending balance in the retained earnings account. 
D) the trial balance before adjustments.

Question 10

The income statement for the year 2021 of Fugazi Co.contains the following information:   After all closing entries have been posted, the Income Summary account will have a balance of

Accepted Answer

A) $0. 
B) $7,500 debit. 
C) $7,500 credit. 
D) $77,500 credit. 
A) $0. 
B) $7,500 debit. 
C) $7,500 credit. 
D) $77,500 credit.

Question 11

Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

Accepted Answer

A) True 
 B)False

Question 12

On a classified balance sheet, current assets are customarily listed

Accepted Answer

A) in alphabetical order. 
B) with the largest dollar amounts first. 
C) in the order of liquidity. 
D) in the order of acquisition. 
A) in alphabetical order. 
B) with the largest dollar amounts first. 
C) in the order of liquidity. 
D) in the order of acquisition.

Question 13

Intangible assets include each of the following except

Accepted Answer

A) copyrights. 
B) goodwill. 
C) land improvements. 
D) patents. 
A) copyrights. 
B) goodwill. 
C) land improvements. 
D) patents.

Question 14

The final closing entry to be journalized is typically the entry that closes the

Accepted Answer

A) revenue accounts. 
B) dividends account. 
C) retained earnings account. 
D) expense accounts. 
A) revenue accounts. 
B) dividends account. 
C) retained earnings account. 
D) expense accounts.

Question 15

A correcting entry

Accepted Answer

A) must involve one balance sheet account and one income statement account. 
B) is another name for a closing entry. 
C) may involve any combination of accounts. 
D) is a required step in the accounting cycle. 
A) must involve one balance sheet account and one income statement account. 
B) is another name for a closing entry. 
C) may involve any combination of accounts. 
D) is a required step in the accounting cycle.

Question 16

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

Accepted Answer

A) True 
 B)False

Question 17

At April 1, 2021, Spiderland Company reported a balance of $20,000 in the Retained Earnings account.Spiderland Company earned revenues of $50,000 and incurred expenses of $32,000 during April 2021.The company paid dividends of $10,000 during the month.
(a) Prepare the entries to close Income Summary and the Dividends acccount at April 30, 2021.
(b) What is the balance in Retained Earnings on the April 30, 2021 post-closing trial balance?

Accepted Answer

The answer of At April 1, 2021, Spiderland Company reported...

Question 18

Which of the following steps in the accounting cycle would not generally be performed daily?

Accepted Answer

A) Journalize transactions 
B) Post to ledger accounts 
C) Prepare adjusting entries 
D) Analyze business transactions 
A) Journalize transactions 
B) Post to ledger accounts 
C) Prepare adjusting entries 
D) Analyze business transactions

Question 19

On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550.Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500.The entries have been posted to the ledger.the correcting entry should be:

Accepted Answer

Question 20

The income statement for the month of June, 2021 of Camera Obscura Enterprises contains the following information:   The entry to close the expense accounts includes a

Accepted Answer

A) debit to Income Summary for $1,300. 
B) credit to Rent Expense for $1,500. 
C) credit to Income Summary for $5,700. 
D) debit to Salaries and Wages Expense for $3,000. 
A) debit to Income Summary for $1,300. 
B) credit to Rent Expense for $1,500. 
C) credit to Income Summary for $5,700. 
D) debit to Salaries and Wages Expense for $3,000.

Most companies that follow IFRS present balance sheet (statement of financial position) information in this order:

Under IFRS and under GAAP, current assets are listed in IFRS.

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000.The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31.

If a company utilizes reversing entries, they will

Liabilities are generally classified on a balance sheet as

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: The current assets should be listed on Gray's Postal Service's balance sheet in the following order:

A post-closing trial balance is prepared

The worksheet does not show

The income statement for the year 2021 of Fugazi Co.contains the following information: After all closing entries have been posted, the Income Summary account will have a balance of

Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

On a classified balance sheet, current assets are customarily listed

Intangible assets include each of the following except

The final closing entry to be journalized is typically the entry that closes the

A correcting entry

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

Which of the following steps in the accounting cycle would not generally be performed daily?

On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550.Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500.The entries have been posted to the ledger.the correcting entry should be:

The income statement for the month of June, 2021 of Camera Obscura Enterprises contains the following information: The entry to close the expense accounts includes a

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: Organisations, Stock Transactions and Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Time Value of Money

Payroll Accounting

Other Significant Liabilities

Filters

Exam 4: Completing the Accounting Cycle

Most companies that follow IFRS present balance sheet (statement of financial position) information in this order:

Under IFRS and under GAAP, current assets are listed in IFRS.

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000.The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31.

If a company utilizes reversing entries, they will

Liabilities are generally classified on a balance sheet as

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: The current assets should be listed on Gray's Postal Service's balance sheet in the following order:

A post-closing trial balance is prepared

The worksheet does not show

The income statement for the year 2021 of Fugazi Co.contains the following information: After all closing entries have been posted, the Income Summary account will have a balance of

Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

On a classified balance sheet, current assets are customarily listed

Intangible assets include each of the following except

The final closing entry to be journalized is typically the entry that closes the

A correcting entry

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

Which of the following steps in the accounting cycle would not generally be performed daily?

On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550.Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500.The entries have been posted to the ledger.the correcting entry should be:

The income statement for the month of June, 2021 of Camera Obscura Enterprises contains the following information: The entry to close the expense accounts includes a

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: Organisations, Stock Transactions and Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Time Value of Money

Payroll Accounting

Other Significant Liabilities

Filters