Question 1

Under which of the following categories would Land appear?

Accepted Answer

A) Non-current liabilities 
B) Non-current assets 
C) Current liabilities 
D) Current assets 
A) Non-current liabilities 
B) Non-current assets 
C) Current liabilities 
D) Current assets

Question 2

Which of the following accounts will still show a balance after the closing process is completed?

Accepted Answer

A) Service revenue account 
B) Expense accounts 
C) Accumulated depreciation account 
D) Drawings account 
A) Service revenue account 
B) Expense accounts 
C) Accumulated depreciation account 
D) Drawings account

Question 3

Which of the following statements is TRUE concerning the worksheet?

Accepted Answer

A) The worksheet is a document used to summarise data to prepare the financial statements. 
B) The worksheet is a ledger. 
C) The worksheet is a journal. 
D) The worksheet is a financial statement. 
A) The worksheet is a document used to summarise data to prepare the financial statements. 
B) The worksheet is a ledger. 
C) The worksheet is a journal. 
D) The worksheet is a financial statement.

Question 4

The following contains information from the records of the Wellborn Engineers and Architects. 
$\quad $$\quad $$\quad $$\quad $Wellborn Engineers and Architects
$\quad $$\quad $$\quad $$\quad $Selected financial information
$\quad $$\quad $$\quad $$\quad $31 December,2016
$$\begin{array} { | l | l | } 
\hline \text { Current assets } & \$ 70,000 \
\hline \text { Current liabilities } & 35,000 \
\hline \text { Non-current assets } & 99,000 \
\hline \text { Non-current liabilities } & 62,000 \
\hline \text { Total revenues } & 53,000 \
\hline \text { Total expenses } & 37,000 \
\hline
\end{array}$$ Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

Accepted Answer

A) The company has $2.00 of current assets for every $1.00 of current liabilities. 
B) The company has $0.57 of current assets for every $1.00 of current liabilities. 
C) The company has $2.13 of current assets for every $1.00 of liabilities. 
D) The company has $1.60 of current assets for every $1.00 of liabilities. 
A) The company has $2.00 of current assets for every $1.00 of current liabilities. 
B) The company has $0.57 of current assets for every $1.00 of current liabilities. 
C) The company has $2.13 of current assets for every $1.00 of liabilities. 
D) The company has $1.60 of current assets for every $1.00 of liabilities.

Question 5

The post-closing trial balance is an optional step.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a non-current asset?

Accepted Answer

A) Accounts receivable 
B) Equipment 
C) Land 
D) Buildings 
A) Accounts receivable 
B) Equipment 
C) Land 
D) Buildings

Question 7

Which is NOT an example of a temporary account?

Accepted Answer

A) Electricity and gas expense 
B) Service revenue 
C) Wages expense 
D) Accumulated depreciation 
A) Electricity and gas expense 
B) Service revenue 
C) Wages expense 
D) Accumulated depreciation

Question 8

The current ratio and the debt ratio are shown on the Income statement.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is an accurate interpretation of a debt ratio of 0.60?

Accepted Answer

A) The company has $0.60 of current assets for every $1.00 of current liabilities. 
B) The company has $0.60 of current liabilities for every $1.00 of current assets. 
C) The company has $0.60 of assets for every $1.00 of liabilities. 
D) The company has $0.60 of liabilities for every $1.00 of assets. 
A) The company has $0.60 of current assets for every $1.00 of current liabilities. 
B) The company has $0.60 of current liabilities for every $1.00 of current assets. 
C) The company has $0.60 of assets for every $1.00 of liabilities. 
D) The company has $0.60 of liabilities for every $1.00 of assets.

Question 10

Prepaid rent in the worksheet's trial balance column is $4 000.Prepaid rent in the balance sheet column is $2 000.Which of the following entries would have caused this difference?

Accepted Answer

A) A $2 000 credit entry to Prepaid rent in the worksheet's adjustments column 
B) A $2 000 debit entry to Prepaid rent in the worksheet's adjustments column 
C) A $2 000 credit entry to Rent expense in the worksheet's adjustments column 
D) A $2 000 debit entry to Cash in the worksheet's adjustments column 
A) A $2 000 credit entry to Prepaid rent in the worksheet's adjustments column 
B) A $2 000 debit entry to Prepaid rent in the worksheet's adjustments column 
C) A $2 000 credit entry to Rent expense in the worksheet's adjustments column 
D) A $2 000 debit entry to Cash in the worksheet's adjustments column

Question 11

Where does Profit appear on a worksheet?

Accepted Answer

A) Profit appears only in the Income statement debit column. 
B) Profit appears in the Income statement credit column and in the balance sheet debit column. 
C) Profit appears in the balance sheet credit column and in the Income statement debit column. 
D) Profit appears only in the balance sheet credit column. 
A) Profit appears only in the Income statement debit column. 
B) Profit appears in the Income statement credit column and in the balance sheet debit column. 
C) Profit appears in the balance sheet credit column and in the Income statement debit column. 
D) Profit appears only in the balance sheet credit column.

Question 12

The adjusting process zeroes out all revenues and all expenses.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following does the current ratio measure?

Accepted Answer

A) The company's overall ability to pay liabilities 
B) The company's rate of cash flow 
C) The proportion of the company's assets that are financed with debt 
D) The company's ability to pay current liabilities with current assets 
A) The company's overall ability to pay liabilities 
B) The company's rate of cash flow 
C) The proportion of the company's assets that are financed with debt 
D) The company's ability to pay current liabilities with current assets

Question 14

Which of the following accounts will be closed by crediting the Income summary account?

Accepted Answer

A) Accounts payable 
B) Service revenue 
C) Depreciation expense 
D) Accumulated depreciation 
A) Accounts payable 
B) Service revenue 
C) Depreciation expense 
D) Accumulated depreciation

Question 15

Which of the following is the LAST step of preparing the worksheet?

Accepted Answer

A) Enter the adjusting entries in the adjustments columns,and total the amounts. 
B) On the Income statement column,calculate profit.Enter profit or loss as the balancing amount on the Income statement and balance sheet columns.Total the Income statement and balance sheet columns. 
C) Copy the asset,liability and owners' equity amounts from the adjusted trial balance to the balance sheet columns.Copy the revenue and expense amounts to the Income statement columns.Total each column. 
D) Calculate each account's adjusted balance by combining the trial balance and adjustment figures.Enter each account's adjusted amount in the adjusted trial balance columns. 
A) Enter the adjusting entries in the adjustments columns,and total the amounts. 
B) On the Income statement column,calculate profit.Enter profit or loss as the balancing amount on the Income statement and balance sheet columns.Total the Income statement and balance sheet columns. 
C) Copy the asset,liability and owners' equity amounts from the adjusted trial balance to the balance sheet columns.Copy the revenue and expense amounts to the Income statement columns.Total each column. 
D) Calculate each account's adjusted balance by combining the trial balance and adjustment figures.Enter each account's adjusted amount in the adjusted trial balance columns.

Question 16

Below is a list of various balance sheet accounts and their balances. $\begin{array}{|l|l|l|}
\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\hline \text { Building } & \$ 120,000 \
\hline \text { Cash } & 10,000 \
\hline \text { Supplies } & 300 \
\hline \text { Furniture } & 3000 \
\hline \text { Prepaid insurance } & 650 \
\hline \text { Accumulated depreciation - furniture } & & \$ 4000 \
\hline \text { Land } & 33,000 & \
\hline \text { Accumulated depreciation - building } & & 4300 \
\hline \text { Accounts receivable } & 2200 &\\hline
\end{array}$ What are the total current assets that would be shown on the balance sheet?

Accepted Answer

A) $11,450 
B) $10,800 
C) $13,650 
D) $15,200 
A) $11,450 
B) $10,800 
C) $13,650 
D) $15,200

Question 17

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Accepted Answer

A) Equipment 
B) Salary payable 
C) Insurance expense 
D) Rent revenue 
A) Equipment 
B) Salary payable 
C) Insurance expense 
D) Rent revenue

Question 18

The Drawings account is copied to the Income statement columns on the worksheet.

Accepted Answer

A) True 
 B)False

Question 19

Drawings is a permanent account.

Accepted Answer

A) True 
 B)False

Question 20

The smaller the current ratio,the higher is the ability of a firm to repay its current debts.

Accepted Answer

A) True 
 B)False

Under which of the following categories would Land appear?

Which of the following accounts will still show a balance after the closing process is completed?

Which of the following statements is TRUE concerning the worksheet?

The post-closing trial balance is an optional step.

Which of the following is NOT a non-current asset?

Which is NOT an example of a temporary account?

The current ratio and the debt ratio are shown on the Income statement.

Which of the following statements is an accurate interpretation of a debt ratio of 0.60?

Prepaid rent in the worksheet's trial balance column is $4 000.Prepaid rent in the balance sheet column is $2 000.Which of the following entries would have caused this difference?

Where does Profit appear on a worksheet?

The adjusting process zeroes out all revenues and all expenses.

Which of the following does the current ratio measure?

Which of the following accounts will be closed by crediting the Income summary account?

Which of the following is the LAST step of preparing the worksheet?

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

The Drawings account is copied to the Income statement columns on the worksheet.

Drawings is a permanent account.

The smaller the current ratio,the higher is the ability of a firm to repay its current debts.

The Role of Accounting in Decision Making

Recording Business Transactions

The Adjusting Process

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities, Debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Filters

Exam 4: Completing the Accounting Cycle

Under which of the following categories would Land appear?

Which of the following accounts will still show a balance after the closing process is completed?

Which of the following statements is TRUE concerning the worksheet?

The post-closing trial balance is an optional step.

Which of the following is NOT a non-current asset?

Which is NOT an example of a temporary account?

The current ratio and the debt ratio are shown on the Income statement.

Which of the following statements is an accurate interpretation of a debt ratio of 0.60?

Prepaid rent in the worksheet's trial balance column is $4 000.Prepaid rent in the balance sheet column is $2 000.Which of the following entries would have caused this difference?

Where does Profit appear on a worksheet?

The adjusting process zeroes out all revenues and all expenses.

Which of the following does the current ratio measure?

Which of the following accounts will be closed by crediting the Income summary account?

Which of the following is the LAST step of preparing the worksheet?

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

The Drawings account is copied to the Income statement columns on the worksheet.

Drawings is a permanent account.

The smaller the current ratio,the higher is the ability of a firm to repay its current debts.

The Role of Accounting in Decision Making

Recording Business Transactions

The Adjusting Process

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities, Debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Filters