Question 1

Which of the following statements explains a classified balance sheet?

Accepted Answer

A)  Accounts are classified by their purchase dates. 
B)  Account balances are listed from the highest amount to the lowest amount. 
C)  Assets are listed in the order of their liquidity. 
D)  Assets are listed in alphabetical order. 
A)  Accounts are classified by their purchase dates. 
B)  Account balances are listed from the highest amount to the lowest amount. 
C)  Assets are listed in the order of their liquidity. 
D)  Assets are listed in alphabetical order.

Question 2

Buildings, land, and equipment are classified as:

Accepted Answer

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

Question 3

The Accounts Payable account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 4

In an accounting cycle, an analysis of transactions is performed at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 5

The following is the adjusted trial balance as of December 31, 2015 of Current Times Watch Company:
   Provide the closing entry for Owner's Withdrawals.

Accepted Answer

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Question 6

In the balance sheet, assets are classified as either current or long-term depending on their liquidity.

Accepted Answer

A) True 
 B)False

Question 7

Liquidity is a measure of how:

Accepted Answer

A)  quickly an asset may be converted into cash. 
B)  long an asset can be used. 
C)  easily an asset can be exchanged for another asset. 
D)  short an operating cycle is. 
A)  quickly an asset may be converted into cash. 
B)  long an asset can be used. 
C)  easily an asset can be exchanged for another asset. 
D)  short an operating cycle is.

Question 8

Which of the following are NOT included in a post-closing trial balance?

Accepted Answer

A)  Assets and liabilities 
B)  Capital and assets 
C)  Capital and liabilities 
D)  Revenues and expenses 
A)  Assets and liabilities 
B)  Capital and assets 
C)  Capital and liabilities 
D)  Revenues and expenses

Question 9

The following is the adjusted trial balance from the worksheet for Tuttle Photography.
  Using the information provided in the worksheet above, prepare an income statement for Tuttle Photography.

Accepted Answer

None

Question 10

The Cash account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 11

An increase in the current ratio implies that the profitability of the company has increased from the previous period.

Accepted Answer

A) True 
 B)False

Question 12

The Office Supplies Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Rent Revenue 
B)  Insurance Expense 
C)  Salaries Payable 
D)  Equipment 
A)  Rent Revenue 
B)  Insurance Expense 
C)  Salaries Payable 
D)  Equipment

Question 14

GAAP requires publicly traded companies to prepare a post-closing trial balance and publish it in their annual report.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  Owner's Name, Withdrawals 
B)  Salaries Expense 
C)  Owner's Name, Capital 
D)  Office Supplies Expense 
A)  Owner's Name, Withdrawals 
B)  Salaries Expense 
C)  Owner's Name, Capital 
D)  Office Supplies Expense

Question 16

The operating cycle is the time span required for a business to repay its long-term liabilities.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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Question 19

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 after closing Net Income or loss to the Rose, Capital account?

Accepted Answer

A)  Debit balance of $15,000 
B)  Credit balance of $9,000 
C)  Credit balance of $6,000 
D)  Balance of $0 
A)  Debit balance of $15,000 
B)  Credit balance of $9,000 
C)  Credit balance of $6,000 
D)  Balance of $0

Question 20

Which of the following is true of a completed worksheet?

Accepted Answer

A)  The total debits in the trial balance column equal the total debits in the adjusted trial balance column. 
B)  The total debits in the income statement column equal the total credits in the balance sheet column. 
C)  The total debits in the income statement column equal the total debits in the balance sheet column. 
D)  The total debits equal the total credits in each column. 
A)  The total debits in the trial balance column equal the total debits in the adjusted trial balance column. 
B)  The total debits in the income statement column equal the total credits in the balance sheet column. 
C)  The total debits in the income statement column equal the total debits in the balance sheet column. 
D)  The total debits equal the total credits in each column.

Exam 4: Completing the Accounting Cycle

Which of the following statements explains a classified balance sheet?

Buildings, land, and equipment are classified as:

The Accounts Payable account is a temporary account.

In an accounting cycle, an analysis of transactions is performed at the end of each accounting period.

The following is the adjusted trial balance as of December 31, 2015 of Current Times Watch Company: Provide the closing entry for Owner's Withdrawals.

In the balance sheet, assets are classified as either current or long-term depending on their liquidity.

Liquidity is a measure of how:

Which of the following are NOT included in a post-closing trial balance?

The following is the adjusted trial balance from the worksheet for Tuttle Photography. Using the information provided in the worksheet above, prepare an income statement for Tuttle Photography.

The Cash account is a temporary account.

An increase in the current ratio implies that the profitability of the company has increased from the previous period.

The Office Supplies Expense account is a temporary account.

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

GAAP requires publicly traded companies to prepare a post-closing trial balance and publish it in their annual report.

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

The operating cycle is the time span required for a business to repay its long-term liabilities.

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

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

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 after closing Net Income or loss to the Rose, Capital account?

Which of the following is true of a completed worksheet?

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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