Question 1

Prepare a balance sheet from the adjusted trial balance of Hanson Storage.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 2

The ______________ refers to the steps in preparing financial statements for users.

Accepted Answer

The answer of The ______________ refers to the steps in...

Question 3

The first five steps in the accounting cycle include analyzing transactions,journalizing,posting,preparing an unadjusted trial balance,and recording adjusting entries.

Accepted Answer

A) True 
 B)False

Question 4

What is the current ratio based on the following information,assuming all accounts have a normal balance?

Accepted Answer

A) 1.23 
B) 3.58 
C) 11.57 
D) 12.3 
E) 1.57 
A) 1.23 
B) 3.58 
C) 11.57 
D) 12.3 
E) 1.57

Question 5

The Income Summary account is closed to the retained earnings account.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following assets is not depreciated?

Accepted Answer

A) Store fixtures 
B) Computers 
C) Land 
D) Buildings 
E) Vehicles 
A) Store fixtures 
B) Computers 
C) Land 
D) Buildings 
E) Vehicles

Question 7

The matching principle and the full disclosure principle are the two main accounting principles used in accrual accounting.

Accepted Answer

A) True 
 B)False

Question 8

The following are the steps in the accounting cycle.List them in the order in which they are completed:
Prepare adjusted trial balance.
Post transactions.
Prepare an unadjusted trial balance.
Journalize transactions.
Prepare the financial statements.
Close the temporary accounts.
Adjust the ledger accounts.
Prepare a post-closing trial balance.
Analyze transactions.

Accepted Answer

1 Analyze transactions. 
2 Journalize tr

Question 9

Identify the differences between accrual accounting and cash basis accounting.

Accepted Answer

Accrual accounting records rev

Question 10

The company has earned (but not recorded) $6,000 of interest relating to an investment for the year ended December 31,2014.A check for this amount will be received on January 9,2015.How would the company record the related adjusting entry dated December 31,2014?

Accepted Answer

A) Debit Cash for $6,000 and credit Interest Revenue for $6,000. 
B) Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000. 
C) Debit Interest Expense for $6,000 and credit Interest Revenue for $6,000. 
D) Debit Cash for $6,000 and credit Interest Receivable for $6,000. 
E) Debit Interest Revenue for $6,000 and credit Income Summary for $6,000. 
A) Debit Cash for $6,000 and credit Interest Revenue for $6,000. 
B) Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000. 
C) Debit Interest Expense for $6,000 and credit Interest Revenue for $6,000. 
D) Debit Cash for $6,000 and credit Interest Receivable for $6,000. 
E) Debit Interest Revenue for $6,000 and credit Income Summary for $6,000.

Question 11

An expense account is normally closed by debiting Income Summary and crediting the expense account.

Accepted Answer

A) True 
 B)False

Question 12

The adjusted trial balance of Sara's Web Services follows:
   a.Prepare the closing entries for Sara's Web Services.
b.What is the balance of the retained earnings account after the closing entries are posted?

Accepted Answer

a. @#IMG-DLM&_TB6947_00_TB6947_00_TB6947

Question 13

Based on the adjusted trial balance,prepare a balance sheet for Martin Sky Taxi Services.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 14

The Retained Earnings account has a credit balance of $17,000 before closing entries are made.If total revenues for the period are $55,200,total expenses are $39,800 and dividends are $9,000,what is the ending balance in the Retained Earnings account after all closing entries are made?

Accepted Answer

A) $8,000 
B) $15,400 
C) $23,400 
D) $17,000 
E) $32,400 
A) $8,000 
B) $15,400 
C) $23,400 
D) $17,000 
E) $32,400

Question 15

__________________________ is the process of allocating the cost of plant assets to their expected useful lives.

Accepted Answer

The answer of __________________________ is the process of allocating the...

Question 16

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

Accepted Answer

A) Entering an asset amount in the Income Statement Debit column. 
B) Entering a liability amount in the Income Statement Credit column. 
C) Entering an expense amount in the Balance Sheet Debit column. 
D) Entering a revenue amount in the Balance Sheet Debit column. 
E) Entering a liability amount in the Balance Sheet Credit column. 
A) Entering an asset amount in the Income Statement Debit column. 
B) Entering a liability amount in the Income Statement Credit column. 
C) Entering an expense amount in the Balance Sheet Debit column. 
D) Entering a revenue amount in the Balance Sheet Debit column. 
E) Entering a liability amount in the Balance Sheet Credit column.

Question 17

A broad principle that requires identifying the activities of a business with specific time periods such as months,quarters,or years is the:

Accepted Answer

A) Operating cycle of a business. 
B) Time period assumption. 
C) Going-concern principle. 
D) Matching principle. 
E) Accrual basis of accounting. 
A) Operating cycle of a business. 
B) Time period assumption. 
C) Going-concern principle. 
D) Matching principle. 
E) Accrual basis of accounting.

Question 18

During the year,Able Co.purchased $23,750 worth of supplies.At the end of the year,the supplies expense on the adjusted trial balance was $29,340 and the balance sheet showed a balance of $810 in the supplies account.What was the supplies balance at the beginning of the year?

Accepted Answer

X + $23,75

Question 19

What is the usual order in which financial statements are prepared from the adjusted trial balance? Why are they prepared in that order?

Accepted Answer

The income statement is prepared first.T

Question 20

Adjustments must be entered in the journal and posted to the ledger after the work sheet is prepared.

Accepted Answer

A) True 
 B)False

Prepare a balance sheet from the adjusted trial balance of Hanson Storage.

The ______________ refers to the steps in preparing financial statements for users.

The first five steps in the accounting cycle include analyzing transactions,journalizing,posting,preparing an unadjusted trial balance,and recording adjusting entries.

What is the current ratio based on the following information,assuming all accounts have a normal balance?

The Income Summary account is closed to the retained earnings account.

Which of the following assets is not depreciated?

The matching principle and the full disclosure principle are the two main accounting principles used in accrual accounting.

Identify the differences between accrual accounting and cash basis accounting.

The company has earned (but not recorded) $6,000 of interest relating to an investment for the year ended December 31,2014.A check for this amount will be received on January 9,2015.How would the company record the related adjusting entry dated December 31,2014?

An expense account is normally closed by debiting Income Summary and crediting the expense account.

The adjusted trial balance of Sara's Web Services follows: a.Prepare the closing entries for Sara's Web Services. b.What is the balance of the retained earnings account after the closing entries are posted?

Based on the adjusted trial balance,prepare a balance sheet for Martin Sky Taxi Services.

The Retained Earnings account has a credit balance of $17,000 before closing entries are made.If total revenues for the period are $55,200,total expenses are $39,800 and dividends are $9,000,what is the ending balance in the Retained Earnings account after all closing entries are made?

__________________________ is the process of allocating the cost of plant assets to their expected useful lives.

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

A broad principle that requires identifying the activities of a business with specific time periods such as months,quarters,or years is the:

During the year,Able Co.purchased $23,750 worth of supplies.At the end of the year,the supplies expense on the adjusted trial balance was $29,340 and the balance sheet showed a balance of $810 in the supplies account.What was the supplies balance at the beginning of the year?

What is the usual order in which financial statements are prepared from the adjusted trial balance? Why are they prepared in that order?

Adjustments must be entered in the journal and posted to the ledger after the work sheet is prepared.

Introducing Financial Accounting

Accounting System and Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 3: Adjusting Accounts for Financial Statements

Prepare a balance sheet from the adjusted trial balance of Hanson Storage.

The ______________ refers to the steps in preparing financial statements for users.

The first five steps in the accounting cycle include analyzing transactions,journalizing,posting,preparing an unadjusted trial balance,and recording adjusting entries.

What is the current ratio based on the following information,assuming all accounts have a normal balance?

The Income Summary account is closed to the retained earnings account.

Which of the following assets is not depreciated?

The matching principle and the full disclosure principle are the two main accounting principles used in accrual accounting.

Identify the differences between accrual accounting and cash basis accounting.

The company has earned (but not recorded) $6,000 of interest relating to an investment for the year ended December 31,2014.A check for this amount will be received on January 9,2015.How would the company record the related adjusting entry dated December 31,2014?

An expense account is normally closed by debiting Income Summary and crediting the expense account.

The adjusted trial balance of Sara's Web Services follows: a.Prepare the closing entries for Sara's Web Services. b.What is the balance of the retained earnings account after the closing entries are posted?

Based on the adjusted trial balance,prepare a balance sheet for Martin Sky Taxi Services.

The Retained Earnings account has a credit balance of $17,000 before closing entries are made.If total revenues for the period are $55,200,total expenses are $39,800 and dividends are $9,000,what is the ending balance in the Retained Earnings account after all closing entries are made?

__________________________ is the process of allocating the cost of plant assets to their expected useful lives.

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

A broad principle that requires identifying the activities of a business with specific time periods such as months,quarters,or years is the:

During the year,Able Co.purchased $23,750 worth of supplies.At the end of the year,the supplies expense on the adjusted trial balance was $29,340 and the balance sheet showed a balance of $810 in the supplies account.What was the supplies balance at the beginning of the year?

What is the usual order in which financial statements are prepared from the adjusted trial balance? Why are they prepared in that order?

Adjustments must be entered in the journal and posted to the ledger after the work sheet is prepared.

Introducing Financial Accounting

Accounting System and Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters