Question 1

Under which of the following categories would Accounts Payable appear?

Accepted Answer

A)  Long-term assets 
B)  Current assets 
C)  Long-term liabilities 
D)  Current liabilities 
A)  Long-term assets 
B)  Current assets 
C)  Long-term liabilities 
D)  Current liabilities

Question 2

The Accumulated Depreciation account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 3

Property, plant and equipment are categorized as:

Accepted Answer

A)  current assets. 
B)  fixed assets. 
C)  long-term investments. 
D)  short-term investments. 
A)  current assets. 
B)  fixed assets. 
C)  long-term investments. 
D)  short-term investments.

Question 4

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: $$\begin{array} { | l | r | } 
\hline \text { Notes Payable-short term } & \$ 1,200 \
\hline \text { Salaries Payable } & 4,000 \
\hline \text { Notes Payable-long term } & 25,000 \
\hline \text { Accounts Payable } & 3,200 \
\hline \text { Unearned Revenue } & 2,000 \
\hline \text { Interest Payable } & 2,500 \
\hline
\end{array}$$
-Refer to the table above.The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total long-term liabilities shown on the balance sheet?

Accepted Answer

A)  $1,200 
B)  $4,000 
C)  $5,200 
D)  $25,000 
A)  $1,200 
B)  $4,000 
C)  $5,200 
D)  $25,000

Question 5

The last two columns generally found on the right side of the worksheet are the income statement columns.

Accepted Answer

A) True 
 B)False

Question 6

The current ratio is calculated using the values from the income statement.

Accepted Answer

A) True 
 B)False

Question 7

Only temporary accounts appear on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 8

The assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

Accepted Answer

A)  intangible 
B)  plant 
C)  long-term 
D)  current 
A)  intangible 
B)  plant 
C)  long-term 
D)  current

Question 9

Calculate the current ratio using the following information: $$\begin{array} {| l | r | } 
\hline \text { Cash } & \$ 5,000 \
\hline \text { Accounts Receivable } & 1,400 \
\hline \text { Prepaid Rent } & 900 \
\hline \text { Land } & 20,000 \
\hline \text { Equipment } & 4,000 \
\hline \text { Accumulated Depreciation } & 800 \
\hline \text { Accounts Payable } & 3,000 \
\hline \text { Salaries Payable } & 800 \
\hline \text { Notes Payable-long term } & 9,000 \
\hline
\end{array}$$

Accepted Answer

A)  1.92 
B)  2.43 
C)  1.55 
D)  1.68 
A)  1.92 
B)  2.43 
C)  1.55 
D)  1.68

Question 10

Which of the following accounts will be included in a post-closing trial balance?

Accepted Answer

A)  Service Revenue 
B)  Rent Expense 
C)  Interest Expense 
D)  Unearned Service Revenue 
A)  Service Revenue 
B)  Rent Expense 
C)  Interest Expense 
D)  Unearned Service Revenue

Question 11

Under which of the following categories would bonds held as investment for more than a year appear?

Accepted Answer

A)  Long-term assets 
B)  Current assets 
C)  Long-term liabilities 
D)  Current liabilities 
A)  Long-term assets 
B)  Current assets 
C)  Long-term liabilities 
D)  Current liabilities

Question 12

Prepaid Rent is always classified as a long-term asset.

Accepted Answer

A) True 
 B)False

Question 13

The amount of the Owner's Name, Withdrawals account is entered in the income statement columns on the worksheet.

Accepted Answer

A) True 
 B)False

Question 14

The closing process helps in measuring each period's net income separately from all other periods.

Accepted Answer

A) True 
 B)False

Question 15

The Service Revenue account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 16

Under which of the following categories would Accounts Receivable appear?

Accepted Answer

A)  Current assets 
B)  Current liabilities 
C)  Long-term assets 
D)  Long-term liabilities 
A)  Current assets 
B)  Current liabilities 
C)  Long-term assets 
D)  Long-term liabilities

Question 17

Rose Company earned revenues of $15,000 and incurred expenses of $9,000. The withdrawals of Mary Rose, the owner, were $3,000. What is the balance in the Income Summary account prior to closing net income or loss to the Rose, Capital account?

Accepted Answer

A)  Debit balance of $6,000 
B)  Debit balance of $15,000 
C)  Credit balance of $6,000 
D)  Credit balance of $15,000 
A)  Debit balance of $6,000 
B)  Debit balance of $15,000 
C)  Credit balance of $6,000 
D)  Credit balance of $15,000

Question 18

Generally Accepted Accounting Principles (GAAP) require every organization to prepare reversing entries.

Accepted Answer

A) True 
 B)False

Question 19

On December 31, 2014, Axle Services prepared the following accrual adjustment:
 $$\begin{array} { | c | r | r | } 
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Salaries Payable } & & 1,000 \
\hline
\end{array}$$ Axle uses reversing entries. Prepare the reversing entry that would be prepared on January 1, 2015?

Accepted Answer

\[\begin{array} { | c | r | r

Question 20

Reversing entries are:

Accepted Answer

A)  the exact opposite of a prior adjusting entry. 
B)  dated the last day of the new period. 
C)  are required to be passed as per the Generally Accepted Accounting Principles (GAAP). 
D)  expensive to record and time consuming. 
A)  the exact opposite of a prior adjusting entry. 
B)  dated the last day of the new period. 
C)  are required to be passed as per the Generally Accepted Accounting Principles (GAAP). 
D)  expensive to record and time consuming.

Exam 4: Completing the Accounting Cycle

Under which of the following categories would Accounts Payable appear?

The Accumulated Depreciation account is a permanent account.

Property, plant and equipment are categorized as:

The last two columns generally found on the right side of the worksheet are the income statement columns.

The current ratio is calculated using the values from the income statement.

Only temporary accounts appear on the post-closing trial balance.

The assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

Calculate the current ratio using the following information: Cash \ 5,000 Accounts Receivable 1,400 Prepaid Rent 900 Land 20,000 Equipment 4,000 Accumulated Depreciation 800 Accounts Payable 3,000 Salaries Payable 800 Notes Payable-long term 9,000

Which of the following accounts will be included in a post-closing trial balance?

Under which of the following categories would bonds held as investment for more than a year appear?

Prepaid Rent is always classified as a long-term asset.

The amount of the Owner's Name, Withdrawals account is entered in the income statement columns on the worksheet.

The closing process helps in measuring each period's net income separately from all other periods.

The Service Revenue account is a permanent account.

Under which of the following categories would Accounts Receivable appear?

Rose Company earned revenues of $15,000 and incurred expenses of $9,000. The withdrawals of Mary Rose, the owner, were $3,000. What is the balance in the Income Summary account prior to closing net income or loss to the Rose, Capital account?

Generally Accepted Accounting Principles (GAAP) require every organization to prepare reversing entries.

On December 31, 2014, Axle Services prepared the following accrual adjustment: Salaries Expense 1,000 Salaries Payable 1,000 Axle uses reversing entries. Prepare the reversing entry that would be prepared on January 1, 2015?

Reversing entries are:

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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