Question 1

The following is the adjusted trial balance as of December 31, 2015 of Martin Watch Company:
   Provide the closing entry for expenses.

Accepted Answer

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Question 2

Which of the following steps must be completed before preparing the adjusted trial balance?

Accepted Answer

A)  Prepare post-closing trial balance.0 
B)  Post journal entries to the accounts. 
C)  Prepare closing entries. 
D)  Prepare the financial statements. 
A)  Prepare post-closing trial balance.0 
B)  Post journal entries to the accounts. 
C)  Prepare closing entries. 
D)  Prepare the financial statements.

Question 3

Which of the following statements is true of the accounting cycle?

Accepted Answer

A)  It takes place only at the end of an accounting period. 
B)  It involves preparation of adjusting entries after the closing entries. 
C)  It ignores the beginning balances of accounts. 
D)  It is a process by which financial statements for a period are produced. 
A)  It takes place only at the end of an accounting period. 
B)  It involves preparation of adjusting entries after the closing entries. 
C)  It ignores the beginning balances of accounts. 
D)  It is a process by which financial statements for a period are produced.

Question 4

Which of the following accounts would appear in the balance sheet debit column?

Accepted Answer

A)  Unearned Service Revenue 
B)  Accumulated Depreciation 
C)  Service Revenue 
D)  Prepaid Insurance 
A)  Unearned Service Revenue 
B)  Accumulated Depreciation 
C)  Service Revenue 
D)  Prepaid Insurance

Question 5

The current ratio shows the profitability of a firm.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following account's balance is carried forward to the next accounting period?

Accepted Answer

A)  Accumulated Depreciation 
B)  Depreciation Expense 
C)  Owner's Name, Withdrawals 
D)  Sales Revenue 
A)  Accumulated Depreciation 
B)  Depreciation Expense 
C)  Owner's Name, Withdrawals 
D)  Sales Revenue

Question 7

The following is the adjusted trial balance for Tuttle Photography.   After the closing entries, what will the final balance in R. Tuttle, Capital be?

Accepted Answer

A)  $25,000 
B)  $191,200 
C)  $21,290 
D)  $166,200 
A)  $25,000 
B)  $191,200 
C)  $21,290 
D)  $166,200

Question 8

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography:
   Provide the closing entry for expenses.

Accepted Answer

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Question 9

The beginning balance in the Capital account of a company was $10,000. The revenues and expenses were $200,000 and $120,000, respectively. The owner withdrew $4,000 during the year. The ending balance in the Capital was $90,000.

Accepted Answer

A) True 
 B)False

Question 10

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 paid salaries amounting to $200 on January 07, 2015 for salaries due in 2014. Journalize the entries for January 1, 2015 and January 7, 2015, assuming Axle uses reversing entries.

Accepted Answer

On January 1, Axle will record the rever

Question 11

The financial statement that reports assets, liabilities, and owner's equity as of the last day of the period is called the:

Accepted Answer

A)  income statement. 
B)  statement of owner's equity. 
C)  balance sheet. 
D)  unadjusted trial balance. 
A)  income statement. 
B)  statement of owner's equity. 
C)  balance sheet. 
D)  unadjusted trial balance.

Question 12

The assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called:

Accepted Answer

A)  long-term assets. 
B)  long-term liabilities. 
C)  current assets. 
D)  current liabilities. 
A)  long-term assets. 
B)  long-term liabilities. 
C)  current assets. 
D)  current liabilities.

Question 13

The Salaries Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 14

The current ratio measures a company's:

Accepted Answer

A)  overall ability to pay liabilities. 
B)  ability to pay current liabilities with current assets. 
C)  the proportion of assets that are financed by debt. 
D)  rate of cash flow. 
A)  overall ability to pay liabilities. 
B)  ability to pay current liabilities with current assets. 
C)  the proportion of assets that are financed by debt. 
D)  rate of cash flow.

Question 15

Where does Net Income appear on a worksheet?

Accepted Answer

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

Question 16

Assets are listed in the order of their ________ on the balance sheet.

Accepted Answer

A)  amounts 
B)  dates of purchase 
C)  liquidities 
D)  durabilities 
A)  amounts 
B)  dates of purchase 
C)  liquidities 
D)  durabilities

Question 17

In which of the columns of the worksheet would Net Income be found?

Accepted Answer

A)  Under the trial balance credit column, the adjusted trial balance credit column and the balance sheet credit column 
B)  Under the trial balance debit column, the adjusted trial balance debit column and the balance sheet debit column 
C)  Under the balance sheet debit column and the income statement credit column 
D)  Under the balance sheet credit column and the income statement debit column 
A)  Under the trial balance credit column, the adjusted trial balance credit column and the balance sheet credit column 
B)  Under the trial balance debit column, the adjusted trial balance debit column and the balance sheet debit column 
C)  Under the balance sheet debit column and the income statement credit column 
D)  Under the balance sheet credit column and the income statement debit column

Question 18

A balance sheet prepared in the account form lists the assets at the top and the liabilities and owner's equity below.

Accepted Answer

A) True 
 B)False

Question 19

Revenue and expense accounts are closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 20

In the worksheet, the adjusted balance in the Service Revenue account is also recorded in the credit column of the income statement.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The following is the adjusted trial balance as of December 31, 2015 of Martin Watch Company: Provide the closing entry for expenses.

Which of the following steps must be completed before preparing the adjusted trial balance?

Which of the following statements is true of the accounting cycle?

Which of the following accounts would appear in the balance sheet debit column?

The current ratio shows the profitability of a firm.

Which of the following account's balance is carried forward to the next accounting period?

The following is the adjusted trial balance for Tuttle Photography. After the closing entries, what will the final balance in R. Tuttle, Capital be?

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: Provide the closing entry for expenses.

The beginning balance in the Capital account of a company was $10,000. The revenues and expenses were $200,000 and $120,000, respectively. The owner withdrew $4,000 during the year. The ending balance in the Capital was $90,000.

The financial statement that reports assets, liabilities, and owner's equity as of the last day of the period is called the:

The assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called:

The Salaries Expense account is a temporary account.

The current ratio measures a company's:

Where does Net Income appear on a worksheet?

Assets are listed in the order of their ________ on the balance sheet.

In which of the columns of the worksheet would Net Income be found?

A balance sheet prepared in the account form lists the assets at the top and the liabilities and owner's equity below.

Revenue and expense accounts are closed to the Income Summary account.

In the worksheet, the adjusted balance in the Service Revenue account is also recorded in the credit column of the income statement.

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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