A) Required to bring all permanent accounts to a zero balance at the end of the accounting period B) Not required to be posted C) Required to bring all temporary accounts to a zero balance prior to starting a new accounting cycle D) Generally taken from the financial statements rather than from the work sheet or the accounts themselves A) Required to bring all permanent accounts to a zero balance at the end of the accounting period B) Not required to be posted C) Required to bring all temporary accounts to a zero balance prior to starting a new accounting cycle D) Generally taken from the financial statements rather than from the work sheet or the accounts themselves

Exam 13: Appendix A: The Language of Accountants: Debits and Credits

St. Clair Motor Supplies had the following transactions during December: $\bullet$ Paid a note of $17,000 owed since March plus $425 for interest. $\bullet$ Sold $36,525 of merchandise to customers on account. Cost of goods sold was $21,250. $\bullet$ Paid accounts payable of $2,050. As a result of these transactions, at year-end, liabilities and stockholders' equity would show a total:

(Multiple Choice)

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Question 101

M. Mabrey received $2,500 from a tenant on December 1 for five months' rent of an office. This rent was for December, January, February, March, and April. If Mabrey debited Cash and credited Unearned Rental Income for $2,500 on December 1, what necessary adjustment would be made on December 31?

(Multiple Choice)

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Question 102

Printing Supplies had a beginning balance of $4,000. During the month, purchases of printing supplies totaling $3,000 were debited to the Printing Supplies account. If $2,000 worth of printing supplies is still on hand at month-end, what is the proper adjusting entry?

(Multiple Choice)

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Question 103

Which of the following errors may escape detection when a trial balance is prepared?

(Multiple Choice)

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Question 104

During their first year, Smith and Associates bought $16,000 worth of supplies for their CPA firm. When purchased, the supplies were debited to Supplies and credited to Accounts Payable. What adjusting entry would Smith and Associates make if $4,000 worth of supplies were on hand at year-end?

(Multiple Choice)

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Question 105

Closing entries are:

(Multiple Choice)

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Question 106

Which of the following adjustments is an example of an accrual?

(Multiple Choice)

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Question 107

The term debit refers to:

(Multiple Choice)

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Question 108

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Purchased equipment on account.

(Multiple Choice)

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Question 109

On October 1, Tanaka entered into a lease agreement to rent out its old warehouse space it was no longer using. This agreement calls for Tanaka to receive $3,000 per month from the lessee, due and payable at the end of the 4-month lease term. At December 31, the rental payments from the lessee had yet been received. If Tanaka makes the appropriate adjusting entry, how much will be reported on the December 31 balance sheet as rent receivable?

(Multiple Choice)

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Question 110

Which of the following is a permanent account category?

(Multiple Choice)

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Question 111

An account is closed at year-end when an entry changes its balance to zero.

(True/False)

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Question 112

Adjusting entries must be journalized and posted before closing entries may be prepared.

(True/False)

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Question 113

Smith Company paid $26,400 for a four-year insurance policy on September 1 and recorded the $26,400 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Smith make on December 31, the end of the accounting period (no previous adjustment has been made)?

(Multiple Choice)

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Question 114

The purpose of an unadjusted trial balance is to be sure the general ledger is in balance.

(True/False)

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Question 115

An adjusted trial balance is a listing of all the year-end balance sheet accounts, since all the income statement accounts have been closed to zero.

(True/False)

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Question 116

On December 31, the end of the accounting period, $5,300 in service fees had been earned but not billed or received. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. The proper adjusting entry would be:

(Multiple Choice)

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Question 117

What are the three major steps in the closing process? Why is the closing process necessary?

(Essay)

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Question 118

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Borrowed money from bank, giving a note.

(Multiple Choice)

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Question 119

Expense accounts are increased with credit entries.

(True/False)

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Question 120

Showing 101 - 120 of 128

M. Mabrey received $2,500 from a tenant on December 1 for five months' rent of an office. This rent was for December, January, February, March, and April. If Mabrey debited Cash and credited Unearned Rental Income for $2,500 on December 1, what necessary adjustment would be made on December 31?

Printing Supplies had a beginning balance of $4,000. During the month, purchases of printing supplies totaling $3,000 were debited to the Printing Supplies account. If $2,000 worth of printing supplies is still on hand at month-end, what is the proper adjusting entry?

Which of the following errors may escape detection when a trial balance is prepared?

During their first year, Smith and Associates bought $16,000 worth of supplies for their CPA firm. When purchased, the supplies were debited to Supplies and credited to Accounts Payable. What adjusting entry would Smith and Associates make if $4,000 worth of supplies were on hand at year-end?

Closing entries are:

Which of the following adjustments is an example of an accrual?

The term debit refers to:

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Purchased equipment on account.

Which of the following is a permanent account category?

An account is closed at year-end when an entry changes its balance to zero.

Adjusting entries must be journalized and posted before closing entries may be prepared.

Smith Company paid $26,400 for a four-year insurance policy on September 1 and recorded the $26,400 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Smith make on December 31, the end of the accounting period (no previous adjustment has been made)?

The purpose of an unadjusted trial balance is to be sure the general ledger is in balance.

An adjusted trial balance is a listing of all the year-end balance sheet accounts, since all the income statement accounts have been closed to zero.

On December 31, the end of the accounting period, $5,300 in service fees had been earned but not billed or received. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. The proper adjusting entry would be:

What are the three major steps in the closing process? Why is the closing process necessary?

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Borrowed money from bank, giving a note.

Expense accounts are increased with credit entries.

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Understanding Accounting Information

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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