Question 1

The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet.Prepare the necessary closing entries.

Accepted Answer

The answer of The summary amounts below appear in the...

Question 2

Match between columns
                        Premises: Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Tangible long-lived assets used to produce or sell products or services.
A balance sheet that organizes the assets and liabilities into important subgroups.
A balance sheet that broadly groups assets, liabilities and equity items.
Assets such as notes receivable or investments in stocks which are held for the longer of one year or the operating cycle of the company.
A ratio that is used to help evaluate a company's ability to pay its short-term obligations,calculated by dividing current assets by current liabilities.
Long-term assets used to produce or sell products or services; these assets usually lack physical form and their benefits are uncertain.
Cash or other assets that are expected to be sold, collected, or used within one year or the company's operating cycle whichever is longer.
Debts that are due to be paid or settled within one year or the operating cycle of a business whichever is longer.
The owner's claim on the assets of a company.

Accepted Answer

The Answer of Current assets and Unclassified balance sheet and is...

Question 3

All necessary numbers to prepare the income statement can be taken from the income statement columns of the work sheet,including the net income or net loss.

Accepted Answer

A) True 
 B)False

Question 4

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

Accepted Answer

The answer of Shown below are selected data taken from...

Question 5

All of the following statements regarding a work sheet are true except:

Accepted Answer

A) A worksheet aids in the preparation of financial statements. 
B) A worksheet reduces the possibility of errors when working with many accounts and adjustments. 
C) A worksheet does not assist in planning and organizing an audit of financial statements. 
D) A worksheet helps in preparing interim financial statements. 
E) A worksheet shows the effects of proposed or "what-if" transactions. 
A) A worksheet aids in the preparation of financial statements. 
B) A worksheet reduces the possibility of errors when working with many accounts and adjustments. 
C) A worksheet does not assist in planning and organizing an audit of financial statements. 
D) A worksheet helps in preparing interim financial statements. 
E) A worksheet shows the effects of proposed or "what-if" transactions.

Question 6

The assets section of a classified balance sheet usually includes:

Accepted Answer

A) Current assets, long-term investments, plant assets, and intangible assets. 
B) Current assets, long-term assets, revenues, and intangible assets. 
C) Current assets, long-term investments, plant assets, and equity. 
D) Current liabilities, long-term investments, plant assets, and intangible assets. 
E) Current assets, liabilities, plant assets, and intangible assets. 
A) Current assets, long-term investments, plant assets, and intangible assets. 
B) Current assets, long-term assets, revenues, and intangible assets. 
C) Current assets, long-term investments, plant assets, and equity. 
D) Current liabilities, long-term investments, plant assets, and intangible assets. 
E) Current assets, liabilities, plant assets, and intangible assets.

Question 7

The following items appeared on a company's December 31 work sheet for the current period.Based on the following information,what is net income for the current period?

Accepted Answer

A) $1,400. 
B) $1,855. 
C) $1,905. 
D) $2,060. 
E) $4,670. 
A) $1,400. 
B) $1,855. 
C) $1,905. 
D) $2,060. 
E) $4,670.

Question 8

The unadjusted trial balance of Bade Cleaning Service is entered on the partial work sheet below.Complete the work sheet using the following information:
(a) Salaries earned by employees that are unpaid and unrecorded,$4,000.
(b) An inventory of supplies showed $3,000 of unused supplies still on hand.
(c) Depreciation on automobiles,$30,000.
(d) Services paid in advance by customers of $12,000 have now been provided to customers.
(e) Advertising for November and December in the amount of $8,000 remains unpaid and unrecorded.

Accepted Answer

The answer of The unadjusted trial balance of Bade Cleaning...

Question 9

A worksheet can be helpful in showing the effects of proposed or "what if" transactions,as well as being useful in helping to prepare end-of-period financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Accepted Answer

A) True 
 B)False

Question 11

Closing entries are normally entered in the general journal and then posted to the work sheet.

Accepted Answer

A) True 
 B)False

Question 12

At the beginning of the year,a company's balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner's Capital = $50,000.During the year,the company reported revenues of $46,000 and expenses of $30,000.In addition,owner's withdrawals for the year totaled $20,000.Assuming no other changes to owner's capital,the balance in the owner's capital account at the end of the year would be:

Accepted Answer

A) $66,000. 
B) $86,000. 
C) $(4,000). 
D) $46,000. 
E) $54,000. 
A) $66,000. 
B) $86,000. 
C) $(4,000). 
D) $46,000. 
E) $54,000.

Question 13

Two common subgroups for liabilities on a classified balance sheet are:

Accepted Answer

A) current liabilities and intangible liabilities. 
B) present liabilities and operating liabilities. 
C) general liabilities and specific liabilities. 
D) intangible liabilities and long-term liabilities. 
E) current liabilities and long-term liabilities. 
A) current liabilities and intangible liabilities. 
B) present liabilities and operating liabilities. 
C) general liabilities and specific liabilities. 
D) intangible liabilities and long-term liabilities. 
E) current liabilities and long-term liabilities.

Question 14

What is the purpose of a post-closing trial balance?

Accepted Answer

A post-closing trial balance is a list o

Question 15

A company had revenues of $187,000 and expenses of $109,000 for the accounting period.The owner withdrew $37,000 during the year.Which of the following entries could not be a closing entry?

Accepted Answer

A) Debit Income Summary $78,000; credit Owner's, Capital $78,000 
B) Debit Capital $37,000; credit Withdrawals $37,000. 
C) Debit Revenues $187,000; credit Income Summary $187,000. 
D) Debit Income Summary $109,000, credit Expenses $109,000. 
E) Debit Income Summary $187,000; credit Revenues $187,000. 
A) Debit Income Summary $78,000; credit Owner's, Capital $78,000 
B) Debit Capital $37,000; credit Withdrawals $37,000. 
C) Debit Revenues $187,000; credit Income Summary $187,000. 
D) Debit Income Summary $109,000, credit Expenses $109,000. 
E) Debit Income Summary $187,000; credit Revenues $187,000.

Question 16

A company's post-closing trial balance has a debit total of $475,000 and a credit total of $457,000.This indicates that __________________________.

Accepted Answer

an error w

Question 17

The following adjusted trial balance is for Clara Co.at year-end December 31.The credit balance in Clara,Capital at the beginning of the year,January 1,was $320,000.The owner,Sara Clara,invested an additional $100,000 during the current year.The land held for future expansion was also purchased during the current year.
   Required:
Prepare a classified balance sheet.(Note:
 A $21,000 installment on the long-term note payable is due within one year.)

Accepted Answer

@#IMG-DLM& Net income $470,800 - $195,00

Question 18

The ______________ refers to the steps in preparing financial statements for users.

Accepted Answer

The answer of The ______________ refers to the steps in...

Question 19

Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

Accepted Answer

A) True 
 B)False

Question 20

Adjustments must be entered in the journal and posted to the ledger after the work sheet is prepared.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet.Prepare the necessary closing entries.

All necessary numbers to prepare the income statement can be taken from the income statement columns of the work sheet,including the net income or net loss.

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

All of the following statements regarding a work sheet are true except:

The assets section of a classified balance sheet usually includes:

The following items appeared on a company's December 31 work sheet for the current period.Based on the following information,what is net income for the current period?

A worksheet can be helpful in showing the effects of proposed or "what if" transactions,as well as being useful in helping to prepare end-of-period financial statements.

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Closing entries are normally entered in the general journal and then posted to the work sheet.

Two common subgroups for liabilities on a classified balance sheet are:

What is the purpose of a post-closing trial balance?

A company had revenues of $187,000 and expenses of $109,000 for the accounting period.The owner withdrew $37,000 during the year.Which of the following entries could not be a closing entry?

A company's post-closing trial balance has a debit total of $475,000 and a credit total of $457,000.This indicates that __________________________.

The ______________ refers to the steps in preparing financial statements for users.

Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

Adjustments must be entered in the journal and posted to the ledger after the work sheet is prepared.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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