Question 1

Patents, copyrights, and trademarks are examples of:

Accepted Answer

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

Question 2

Reversing entries are dated on the first day of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 3

The post-closing trial balance shows the net income for the period just ended.

Accepted Answer

A) True 
 B)False

Question 4

Salaries Payable, Interest Payable, and Unearned Revenue are examples of:

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

Clear Cleaning Services pays out wages every week on Friday. Payroll expense totals $4,000 per week, based on a 5-day week. The month of June ended on a Thursday. On Thursday, June 30, Clear made the following accrual adjustment:
 $$\begin{array} { | c | r | r | } 
\hline \text { Wages Expense } & 3,200 & \
\hline \text { Wage Payable } & & 3,200 \
\hline
\end{array}$$ At the same time, they prepared the following reversing entry to be booked on July 1:
 $$\begin{array} { | c | r | r | } 
\hline \text { Wages Payable } & 3,200 & \
\hline \text { Wages Expense } & & 3,200 \
\hline
\end{array}$$ On Friday afternoon, when wages were paid out, what journal entry was made?

Accepted Answer

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

Question 7

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

Accepted Answer

A)  Accumulated Depreciation-Building 
B)  Rent Expense 
C)  Interest Expense 
D)  Service Revenue 
A)  Accumulated Depreciation-Building 
B)  Rent Expense 
C)  Interest Expense 
D)  Service Revenue

Question 8

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: $$\begin{array} { | l | r | r | } 
\hline &  { \text { Debit } } &  { \text { Credit } } \
\hline \text { Building } & \$ 120,000 & \
\hline \text { Cash } & 5,000 & \
\hline \text { Office Supplies } & 700 & \
\hline \text { Furniture } & 3,000 & \
\hline \text { Prepaid Insurance } & 450 & \
\hline \text { Accumulated Depreciation-Furniture } & & \$ 1,000 \
\hline \text { Land } & 35,000 & \
\hline \text { Accumulated Depreciation-Building } & & 4,800 \
\hline \text { Accounts Receivable } & 2,500 & \
\hline
\end{array}$$ 
-Refer to the table above.The insurance has been prepaid for the next half year. What are the total current assets that would be shown on the balance sheet?

Accepted Answer

A)  $10,500 
B)  $5,700 
C)  $8,650 
D)  $6,150 
A)  $10,500 
B)  $5,700 
C)  $8,650 
D)  $6,150

Question 9

The Service Revenue account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  Service Revenue 
B)  Depreciation Expense 
C)  Accounts Payable 
D)  Accumulated Depreciation 
A)  Service Revenue 
B)  Depreciation Expense 
C)  Accounts Payable 
D)  Accumulated Depreciation

Question 11

The steps of the accounting cycle are followed throughout the accounting period.

Accepted Answer

A) True 
 B)False

Question 12

A reversing entry:

Accepted Answer

A)  is required by Generally Accepted Accounting Principles (GAAP). 
B)  is dated the last day of an accounting period. 
C)  is the same as the prior adjusting entry passed in the books. 
D)  switches the debit and the credit of a previous entry. 
A)  is required by Generally Accepted Accounting Principles (GAAP). 
B)  is dated the last day of an accounting period. 
C)  is the same as the prior adjusting entry passed in the books. 
D)  switches the debit and the credit of a previous entry.

Question 13

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

Accepted Answer

A)  Service Revenue 
B)  Interest Payable 
C)  Interest Expense 
D)  Utilities Expense 
A)  Service Revenue 
B)  Interest Payable 
C)  Interest Expense 
D)  Utilities Expense

Question 14

Which of the following is an example of an intangible asset?

Accepted Answer

A)  Equipment 
B)  Plant 
C)  Property 
D)  Copyright 
A)  Equipment 
B)  Plant 
C)  Property 
D)  Copyright

Question 15

Which of the following is a current asset that is expected to be converted to cash, sold, or consumed during the next year (or the normal operating cycle, if longer)?

Accepted Answer

A)  Land 
B)  Equipment 
C)  Building 
D)  Accounts Receivable 
A)  Land 
B)  Equipment 
C)  Building 
D)  Accounts Receivable

Question 16

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

Accepted Answer

A)  Prepaid Insurance 
B)  Buildings 
C)  Unearned Service Revenue 
D)  Service Revenue 
A)  Prepaid Insurance 
B)  Buildings 
C)  Unearned Service Revenue 
D)  Service Revenue

Question 17

John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. No withdrawals were made by Smith during the year. The ending balance in Smith, Capital was $100,000.

Accepted Answer

A) True 
 B)False

Question 18

The Owner's Name, Capital account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 19

Your Best Advisors, a service company, uses reversing entries. On March 31, 2014, they prepared the following adjusting entry to accrue Utilities Expense: $$\begin{array} { | c | r | r | } 
\hline \text { Utilities Expense } & 900 & \
\hline \text { Accounts Payable } & & 900 \
\hline
\end{array}$$ Which of the following entries is the correct reversing entry to be prepared on April 1, 2014?

Accepted Answer

A)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 900 & \
\hline \text { Utilities Expense } & & 900 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Utilities Expense } & 900 & \
\hline \text { Income Summary } & & 900 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 900 & \
\hline \text { Utilities Expense } & & 900 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Utilities Expense } & 900 & \
\hline \text { Accounts Receivable } & & 900 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 900 & \
\hline \text { Utilities Expense } & & 900 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Utilities Expense } & 900 & \
\hline \text { Income Summary } & & 900 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 900 & \
\hline \text { Utilities Expense } & & 900 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Utilities Expense } & 900 & \
\hline \text { Accounts Receivable } & & 900 \
\hline
\end{array}$$

Question 20

The time span during which cash is paid for goods and services, which are then sold to customers from whom the business collects cash is called the:

Accepted Answer

A)  production time. 
B)  operating cycle. 
C)  accounting cycle. 
D)  sales time. 
A)  production time. 
B)  operating cycle. 
C)  accounting cycle. 
D)  sales time.

Exam 4: Completing the Accounting Cycle

Patents, copyrights, and trademarks are examples of:

Reversing entries are dated on the first day of the new accounting period.

The post-closing trial balance shows the net income for the period just ended.

Salaries Payable, Interest Payable, and Unearned Revenue are examples of:

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

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

The Service Revenue account is a temporary account.

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

The steps of the accounting cycle are followed throughout the accounting period.

A reversing entry:

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

Which of the following is an example of an intangible asset?

Which of the following is a current asset that is expected to be converted to cash, sold, or consumed during the next year (or the normal operating cycle, if longer)?

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

John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. No withdrawals were made by Smith during the year. The ending balance in Smith, Capital was $100,000.

The Owner's Name, Capital account is a temporary account.

Your Best Advisors, a service company, uses reversing entries. On March 31, 2014, they prepared the following adjusting entry to accrue Utilities Expense: Utilities Expense 900 Accounts Payable 900 Which of the following entries is the correct reversing entry to be prepared on April 1, 2014?

The time span during which cash is paid for goods and services, which are then sold to customers from whom the business collects cash is called the:

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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