Question 1

Which of the following accounts would NOT appear on a post-closing trial balance?

Accepted Answer

A) Common Stock 
B) Dividends 
C) Dividends Payable 
D) Accounts Receivable 
A) Common Stock 
B) Dividends 
C) Dividends Payable 
D) Accounts Receivable

Question 2

The balance in the Accumulated Depreciation account on the adjusted trial balance:

Accepted Answer

A) is equal to the balance on the unadjusted trial balance. 
B) is greater than the balance on the unadjusted trial balance. 
C) is less than the balance on the unadjusted trial balance. 
D) has no relationship to the balance on the unadjusted trial balance. 
A) is equal to the balance on the unadjusted trial balance. 
B) is greater than the balance on the unadjusted trial balance. 
C) is less than the balance on the unadjusted trial balance. 
D) has no relationship to the balance on the unadjusted trial balance.

Question 3

The unadjusted trial balance shows a $15,000 balance for Prepaid Rent. At the end of the year, $3,000 of the rent had been used. The adjusted trial balance reflects a balance for Prepaid Rent of:

Accepted Answer

A) $12,000 debit. 
B) $12,000 credit. 
C) $3,000 debit. 
D) $3,000 credit. 
A) $12,000 debit. 
B) $12,000 credit. 
C) $3,000 debit. 
D) $3,000 credit.

Question 4

Recording Accounts Receivable would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 5

Items for which we have received payment, but have not yet delivered the service, are called:

Accepted Answer

A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items. 
A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items.

Question 6

Recording the collection of three months of advance rent from a client in an unearned account would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 7

The balance in the Depreciation Expense account on the adjusted trial balance:

Accepted Answer

A) is generally equal to the balance on the unadjusted trial balance. 
B) is generally greater than the balance on the unadjusted trial balance. 
C) is generally less than the balance on the unadjusted trial balance. 
D) has no relationship to the balance on the unadjusted trial balance. 
A) is generally equal to the balance on the unadjusted trial balance. 
B) is generally greater than the balance on the unadjusted trial balance. 
C) is generally less than the balance on the unadjusted trial balance. 
D) has no relationship to the balance on the unadjusted trial balance.

Question 8

Another name for "book value" is:

Accepted Answer

A) Accumulated Depreciation. 
B) carrying value. 
C) market value. 
D) Depreciation Expense. 
A) Accumulated Depreciation. 
B) carrying value. 
C) market value. 
D) Depreciation Expense.

Question 9

Which of the following does NOT go onto the Balance Sheet from the adjusted trial balance?

Accepted Answer

A) Dividends 
B) Accounts Payable 
C) Land 
D) Cash 
A) Dividends 
B) Accounts Payable 
C) Land 
D) Cash

Question 10

The account to which dividends are closed is called:

Accepted Answer

A) Cash. 
B) Retained Earnings. 
C) Common Stock. 
D) Sales. 
A) Cash. 
B) Retained Earnings. 
C) Common Stock. 
D) Sales.

Question 11

Preparing the post-closing trial balance is the ________ step in the accounting cycle.

Accepted Answer

A) first 
B) second 
C) third 
D) last 
A) first 
B) second 
C) third 
D) last

Question 12

Salary expense is $1,175 per day, Monday through Friday, and the business pays employees each Friday. If December 31 falls on a Wednesday, the amount of the adjusting entry to record accrued salaries would be:

Accepted Answer

A) $3,525. 
B) $1,175. 
C) $2,350. 
D) $5,875. 
A) $3,525. 
B) $1,175. 
C) $2,350. 
D) $5,875.

Question 13

Interest Expense had an adjusted balance of $1,208. The adjusting entry for accrued interest was for $422. The unadjusted balance for Interest Expense was a:

Accepted Answer

A) $422 debit. 
B) $1,630 debit. 
C) $1,630 credit. 
D) $786 debit. 
A) $422 debit. 
B) $1,630 debit. 
C) $1,630 credit. 
D) $786 debit.

Question 14

Closing the revenue, expense, and dividend accounts:

Accepted Answer

A) yields the amount of net income or net loss for the period. 
B) yields the change in Retained Earnings for the period. 
C) yields the change in the permanent accounts for the period. 
D) yields the final balance in Stockholders' Equity for the period. 
A) yields the amount of net income or net loss for the period. 
B) yields the change in Retained Earnings for the period. 
C) yields the change in the permanent accounts for the period. 
D) yields the final balance in Stockholders' Equity for the period.

Question 15

Bach, Inc. had closing entries which included debits to revenues for a total of $6,425, credits to expenses for a total of $3,000, and credits to dividends for $400. Bach's net income was $3,425.

Accepted Answer

A) True 
 B)False

Question 16

If C&S, Inc. records expenses in the time period when incurred, they are using the:

Accepted Answer

A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) expense basis of accounting. 
A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) expense basis of accounting.

Question 17

The Supplies account must be adjusted to reflect the supplies that were used during the period.

Accepted Answer

A) True 
 B)False

Question 18

Dividends paid and net losses are:

Accepted Answer

A) additions to Retained Earnings. 
B) subtractions from Retained Earnings. 
C) additions to net income. 
D) subtractions from net income. 
A) additions to Retained Earnings. 
B) subtractions from Retained Earnings. 
C) additions to net income. 
D) subtractions from net income.

Question 19

Adjusting entries are used to update accounts at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 20

Recording Interest Receivable would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Which of the following accounts would NOT appear on a post-closing trial balance?

The balance in the Accumulated Depreciation account on the adjusted trial balance:

The unadjusted trial balance shows a $15,000 balance for Prepaid Rent. At the end of the year, $3,000 of the rent had been used. The adjusted trial balance reflects a balance for Prepaid Rent of:

Recording Accounts Receivable would be an example of a(n):

Items for which we have received payment, but have not yet delivered the service, are called:

Recording the collection of three months of advance rent from a client in an unearned account would be an example of a(n):

The balance in the Depreciation Expense account on the adjusted trial balance:

Another name for "book value" is:

Which of the following does NOT go onto the Balance Sheet from the adjusted trial balance?

The account to which dividends are closed is called:

Preparing the post-closing trial balance is the ________ step in the accounting cycle.

Salary expense is $1,175 per day, Monday through Friday, and the business pays employees each Friday. If December 31 falls on a Wednesday, the amount of the adjusting entry to record accrued salaries would be:

Interest Expense had an adjusted balance of $1,208. The adjusting entry for accrued interest was for $422. The unadjusted balance for Interest Expense was a:

Closing the revenue, expense, and dividend accounts:

Bach, Inc. had closing entries which included debits to revenues for a total of $6,425, credits to expenses for a total of $3,000, and credits to dividends for $400. Bach's net income was $3,425.

If C&S, Inc. records expenses in the time period when incurred, they are using the:

The Supplies account must be adjusted to reflect the supplies that were used during the period.

Dividends paid and net losses are:

Adjusting entries are used to update accounts at the end of an accounting period.

Recording Interest Receivable would be an example of a(n):

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 3: Adjusting and Closing Entries

Which of the following accounts would NOT appear on a post-closing trial balance?

The balance in the Accumulated Depreciation account on the adjusted trial balance:

The unadjusted trial balance shows a $15,000 balance for Prepaid Rent. At the end of the year, $3,000 of the rent had been used. The adjusted trial balance reflects a balance for Prepaid Rent of:

Recording Accounts Receivable would be an example of a(n):

Items for which we have received payment, but have not yet delivered the service, are called:

Recording the collection of three months of advance rent from a client in an unearned account would be an example of a(n):

The balance in the Depreciation Expense account on the adjusted trial balance:

Another name for "book value" is:

Which of the following does NOT go onto the Balance Sheet from the adjusted trial balance?

The account to which dividends are closed is called:

Preparing the post-closing trial balance is the ________ step in the accounting cycle.

Salary expense is $1,175 per day, Monday through Friday, and the business pays employees each Friday. If December 31 falls on a Wednesday, the amount of the adjusting entry to record accrued salaries would be:

Interest Expense had an adjusted balance of $1,208. The adjusting entry for accrued interest was for $422. The unadjusted balance for Interest Expense was a:

Closing the revenue, expense, and dividend accounts:

Bach, Inc. had closing entries which included debits to revenues for a total of $6,425, credits to expenses for a total of $3,000, and credits to dividends for $400. Bach's net income was $3,425.

If C&S, Inc. records expenses in the time period when incurred, they are using the:

The Supplies account must be adjusted to reflect the supplies that were used during the period.

Dividends paid and net losses are:

Adjusting entries are used to update accounts at the end of an accounting period.

Recording Interest Receivable would be an example of a(n):

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters