Question 1

All of the following statements about the post-closing trial balance are correct except it

Accepted Answer

A) shows that the accounting equation is in balance. 
B) provides evidence that the journalizing and posting of closing entries have been properly completed. 
C) contains only permanent accounts. 
D) proves that all transactions have been recorded. 
A) shows that the accounting equation is in balance. 
B) provides evidence that the journalizing and posting of closing entries have been properly completed. 
C) contains only permanent accounts. 
D) proves that all transactions have been recorded.

Question 2

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

Accepted Answer

A) $0. 
B) $70,000 credit. 
C) $70,000 debit. 
D) $7,500 credit. 
A) $0. 
B) $70,000 credit. 
C) $70,000 debit. 
D) $7,500 credit.

Question 3

Under IFRS,

Accepted Answer

A) companies can apply fair value to property, plant, and equipment and natural resources. 
B) companies can apply fair value to property, plant, and equipment but not to natural resources. 
C) companies can apply fair value to neither property, plant, and equipment nor natural resources. 
D) companies can apply fair value to natural resources but not to property, plant, and equipment.
IFRS. 
A) companies can apply fair value to property, plant, and equipment and natural resources. 
B) companies can apply fair value to property, plant, and equipment but not to natural resources. 
C) companies can apply fair value to neither property, plant, and equipment nor natural resources. 
D) companies can apply fair value to natural resources but not to property, plant, and equipment.
IFRS.

Question 4

An unacceptable way to make a correcting entry is to

Accepted Answer

A) reverse the incorrect entry. 
B) erase the incorrect entry. 
C) compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. 
D) correct it immediately upon discovery. 
A) reverse the incorrect entry. 
B) erase the incorrect entry. 
C) compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. 
D) correct it immediately upon discovery.

Question 5

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

Accepted Answer

A) debit to Income Summary for $1,300. 
B) credit to Income Summary for $1,300. 
C) debit to Income Summary for $7,000. 
D) credit to Income Summary for $7,000. 
A) debit to Income Summary for $1,300. 
B) credit to Income Summary for $1,300. 
C) debit to Income Summary for $7,000. 
D) credit to Income Summary for $7,000.

Question 6

If total credits in the income statement columns of a worksheet exceed total debits, the business has net income.

Accepted Answer

A) True 
 B)False

Question 7

The relationship between current assets and current liabilities is important in evaluating a company's

Accepted Answer

A) profitability. 
B) liquidity. 
C) market value. 
D) accounting cycle. 
A) profitability. 
B) liquidity. 
C) market value. 
D) accounting cycle.

Question 8

An intangible asset

Accepted Answer

A) does not have physical substance, yet often is very valuable. 
B) is worthless because it has no physical substance. 
C) is converted into a tangible asset during the operating cycle. 
D) cannot be classified on the balance sheet because it lacks physical substance. 
A) does not have physical substance, yet often is very valuable. 
B) is worthless because it has no physical substance. 
C) is converted into a tangible asset during the operating cycle. 
D) cannot be classified on the balance sheet because it lacks physical substance.

Question 9

Which of the following liabilities are not related to the operating cycle?

Accepted Answer

A) Salaries and wages payable 
B) Accounts payable 
C) Utilities payable 
D) Bonds payable 
A) Salaries and wages payable 
B) Accounts payable 
C) Utilities payable 
D) Bonds payable

Question 10

A worksheet is a multiple column form that facilitates the

Accepted Answer

A) identification of events. 
B) measurement process. 
C) preparation of financial statements. 
D) analysis process. 
A) identification of events. 
B) measurement process. 
C) preparation of financial statements. 
D) analysis process.

Question 11

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021:   What is the amount that would be reported for stockholders' equity at December 31, 2021?

Accepted Answer

A) $158,000 
B) $144,000 
C) $130,000 
D) $102,000 
A) $158,000 
B) $144,000 
C) $130,000 
D) $102,000

Question 12

Reversing entries are an optional bookkeeping procedure.

Accepted Answer

A) True 
 B)False

Question 13

The income statement for the year 2021 of Fugazi 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 $77,500. 
C) a credit to Income Summary for $7,500. 
D) a credit to Retained Earnings for $7,500. 
A) a debit to Revenue for $70,000. 
B) credits to Expenses totalling $77,500. 
C) a credit to Income Summary for $7,500. 
D) a credit to Retained Earnings for $7,500.

Question 14

The closing entry process consists of closing

Accepted Answer

A) all asset and liability accounts. 
B) out the retained earnings account. 
C) all permanent accounts. 
D) all temporary accounts. 
A) all asset and liability accounts. 
B) out the retained earnings account. 
C) all permanent accounts. 
D) all temporary accounts.

Question 15

In one closing entry, Dividends is credited and Income Summary is debited.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) $0 
B) $70,000 
C) $88,000 
D) $90,000 
A) $0 
B) $70,000 
C) $88,000 
D) $90,000

Question 18

The Income Summary account is used

Accepted Answer

A) during interim periods. 
B) in preparing adjusting entries. 
C) annually in preparing closing entries. 
D) annually in preparing correcting entries. 
A) during interim periods. 
B) in preparing adjusting entries. 
C) annually in preparing closing entries. 
D) annually in preparing correcting entries.

Question 19

The following information is for Bright Eyes Auto Supplies:   The total dollar amount of assets to be classified as current assets is

Accepted Answer

A) $140,000. 
B) $220,000. 
C) $360,000. 
D) $500,000. 
A) $140,000. 
B) $220,000. 
C) $360,000. 
D) $500,000.

Question 20

Jawbreaker Company paid $940 on account to a creditor.The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490.The correcting entry is

Accepted Answer

All of the following statements about the post-closing trial balance are correct except it

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

Under IFRS,

An unacceptable way to make a correcting entry is to

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

If total credits in the income statement columns of a worksheet exceed total debits, the business has net income.

The relationship between current assets and current liabilities is important in evaluating a company's

An intangible asset

Which of the following liabilities are not related to the operating cycle?

A worksheet is a multiple column form that facilitates the

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: What is the amount that would be reported for stockholders' equity at December 31, 2021?

Reversing entries are an optional bookkeeping procedure.

The income statement for the year 2021 of Fugazi Co.contains the following information: The entry to close Income Summary to Retained Earnings includes

The closing entry process consists of closing

In one closing entry, Dividends is credited and Income Summary is debited.

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

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

The Income Summary account is used

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as current assets is

Jawbreaker Company paid $940 on account to a creditor.The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490.The correcting entry is

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

All of the following statements about the post-closing trial balance are correct except it

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

Under IFRS,

An unacceptable way to make a correcting entry is to

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

If total credits in the income statement columns of a worksheet exceed total debits, the business has net income.

The relationship between current assets and current liabilities is important in evaluating a company's

An intangible asset

Which of the following liabilities are not related to the operating cycle?

A worksheet is a multiple column form that facilitates the

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: What is the amount that would be reported for stockholders' equity at December 31, 2021?

Reversing entries are an optional bookkeeping procedure.

The income statement for the year 2021 of Fugazi Co.contains the following information: The entry to close Income Summary to Retained Earnings includes

The closing entry process consists of closing

In one closing entry, Dividends is credited and Income Summary is debited.

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

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

The Income Summary account is used

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as current assets is

Jawbreaker Company paid $940 on account to a creditor.The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490.The correcting entry is

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