Question 1

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 2

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Accepted Answer

A) True 
 B)False

Question 3

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals:   The net income (or loss) for the period is

Accepted Answer

A) $44,000 income. 
B) $28,000 income. 
C) $28,000 loss. 
D) not determinable. 
A) $44,000 income. 
B) $28,000 income. 
C) $28,000 loss. 
D) not determinable.

Question 4

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

Accepted Answer

A) Large company with numerous accounts 
B) Small company with numerous accounts 
C) All companies, since worksheets are required under generally accepted accounting principles 
D) Small company with few accounts 
A) Large company with numerous accounts 
B) Small company with numerous accounts 
C) All companies, since worksheets are required under generally accepted accounting principles 
D) Small company with few accounts

Question 5

The following information is for Sunny Day Real Estate:   The total dollar amount of liabilities to be classified as current liabilities is

Accepted Answer

A) $15,000. 
B) $60,000. 
C) $75,000. 
D) $160,000. 
A) $15,000. 
B) $60,000. 
C) $75,000. 
D) $160,000.

Question 6

Balance sheet accounts are considered to be

Accepted Answer

A) temporary stockholders' equity accounts. 
B) permanent accounts. 
C) equity accounts. 
D) nominal accounts. 
A) temporary stockholders' equity accounts. 
B) permanent accounts. 
C) equity accounts. 
D) nominal accounts.

Question 7

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

Accepted Answer

A) True 
 B)False

Question 8

If the total debits exceed the total credits in the balance sheet columns of the worksheet, stockholders' equity

Accepted Answer

A) will increase because net income has occurred. 
B) will decrease because a net loss has occurred. 
C) is in error because a mistake has occurred. 
D) will not be affected. 
A) will increase because net income has occurred. 
B) will decrease because a net loss has occurred. 
C) is in error because a mistake has occurred. 
D) will not be affected.

Question 9

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021:   What is the book value of the equipment at December 31, 2021?

Accepted Answer

A) $170,000 
B) $182,000 
C) $210,000 
D) $238,000 
A) $170,000 
B) $182,000 
C) $210,000 
D) $238,000

Question 10

What is the order in which assets are generally listed on a classified balance sheet?

Accepted Answer

A) Current and long-term 
B) Current; property, plant, and equipment; long-term investments; intangible assets 
C) Current; property, plant, and equipment; intangible assets; long-term investments 
D) Current; long-term investments; property, plant, and equipment; intangible assets 
A) Current and long-term 
B) Current; property, plant, and equipment; long-term investments; intangible assets 
C) Current; property, plant, and equipment; intangible assets; long-term investments 
D) Current; long-term investments; property, plant, and equipment; intangible assets

Question 11

Use the following income statement for the year 2021 for Belle Company to prepare entries to close the revenue and expense accounts for the company.

Accepted Answer

The answer of Use the following income statement for the...

Question 12

The purpose of the post-closing trial balance is to

Accepted Answer

A) prove that no mistakes were made. 
B) prove the equality of the balance sheet account balances that are carried forward into the next accounting period. 
C) prove the equality of the income statement account balances that are carried forward into the next accounting period. 
D) list all the balance sheet accounts in alphabetical order for easy reference. 
A) prove that no mistakes were made. 
B) prove the equality of the balance sheet account balances that are carried forward into the next accounting period. 
C) prove the equality of the income statement account balances that are carried forward into the next accounting period. 
D) list all the balance sheet accounts in alphabetical order for easy reference.

Question 13

The subtotal net assets is used in

Accepted Answer

A) both GAAP and IFRS. 
B) GAAP but not IFRS. 
C) IFRS but not GAAP. 
D) neither IFRS nor GAAP.
IFRS. 
A) both GAAP and IFRS. 
B) GAAP but not IFRS. 
C) IFRS but not GAAP. 
D) neither IFRS nor GAAP.
IFRS.

Question 14

Which of the following would not be classified as a long-term 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

On May 25, Yellow House Company received a $650 check from Grizzly Bean for services to be performed in the future.The bookkeeper for Yellow House Company incorrectly debited Cash for $650 and credited Accounts Receivable for $650.The amounts have been posted to the ledger.To correct this entry, the bookkeeper should:

Accepted Answer

A) debit Cash $650 and credit Unearned Service Revenue $650. 
B) debit Accounts Receivable $650 and credit Service Revenue $650. 
C) debit Accounts Receivable $650 and credit Cash $650. 
D) debit Accounts Receivable $650 and credit Unearned Service Revenue $650. 
A) debit Cash $650 and credit Unearned Service Revenue $650. 
B) debit Accounts Receivable $650 and credit Service Revenue $650. 
C) debit Accounts Receivable $650 and credit Cash $650. 
D) debit Accounts Receivable $650 and credit Unearned Service Revenue $650.

Question 16

Merriweather Post Pavillion received a $820 check from a customer for the balance due.The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280.The correcting entry is

Accepted Answer

A) debit Cash, $820; credit Accounts Receivable, $820. 
B) debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820. 
C) debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. 
D) debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280. 
A) debit Cash, $820; credit Accounts Receivable, $820. 
B) debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820. 
C) debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. 
D) debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280.

Question 17

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Accepted Answer

A) True 
 B)False

Question 18

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021:   What are total liabilities and stockholders' equity at December 31, 2021?

Accepted Answer

A) $176,000 
B) $218,000 
C) $190,000 
D) $232,000 
A) $176,000 
B) $218,000 
C) $190,000 
D) $232,000

Question 19

The most efficient way to accomplish closing entries is to

Accepted Answer

A) credit the income summary account for each revenue account balance. 
B) debit the income summary account for each expense account balance. 
C) credit the dividends balance directly to the income summary account. 
D) credit the income summary account for total revenues and debit the income summary account for total expenses. 
A) credit the income summary account for each revenue account balance. 
B) debit the income summary account for each expense account balance. 
C) credit the dividends balance directly to the income summary account. 
D) credit the income summary account for total revenues and debit the income summary account for total expenses.

Question 20

Closing entries are necessary for

Accepted Answer

A) permanent accounts only. 
B) temporary accounts only. 
C) both permanent and temporary accounts. 
D) permanent or real accounts only. 
A) permanent accounts only. 
B) temporary accounts only. 
C) both permanent and temporary accounts. 
D) permanent or real accounts only.

In order to close the dividends account, the

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: The net income (or loss) for the period is

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

The following information is for Sunny Day Real Estate: The total dollar amount of liabilities to be classified as current liabilities is

Balance sheet accounts are considered to be

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

If the total debits exceed the total credits in the balance sheet columns of the worksheet, stockholders' equity

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: What is the book value of the equipment at December 31, 2021?

What is the order in which assets are generally listed on a classified balance sheet?

Use the following income statement for the year 2021 for Belle Company to prepare entries to close the revenue and expense accounts for the company.

The purpose of the post-closing trial balance is to

The subtotal net assets is used in

Which of the following would not be classified as a long-term liability?

Merriweather Post Pavillion received a $820 check from a customer for the balance due.The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280.The correcting entry is

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: What are total liabilities and stockholders' equity at December 31, 2021?

The most efficient way to accomplish closing entries is to

Closing entries are necessary for

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

In order to close the dividends account, the

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: The net income (or loss) for the period is

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

The following information is for Sunny Day Real Estate: The total dollar amount of liabilities to be classified as current liabilities is

Balance sheet accounts are considered to be

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

If the total debits exceed the total credits in the balance sheet columns of the worksheet, stockholders' equity

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: What is the book value of the equipment at December 31, 2021?

What is the order in which assets are generally listed on a classified balance sheet?

Use the following income statement for the year 2021 for Belle Company to prepare entries to close the revenue and expense accounts for the company.

The purpose of the post-closing trial balance is to

The subtotal net assets is used in

Which of the following would not be classified as a long-term liability?

Merriweather Post Pavillion received a $820 check from a customer for the balance due.The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280.The correcting entry is

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: What are total liabilities and stockholders' equity at December 31, 2021?

The most efficient way to accomplish closing entries is to

Closing entries are necessary for

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