Question 1

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

Accepted Answer

A) Retained Earnings 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense 
A) Retained Earnings 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense D

Question 2

The Accumulated Depreciation account is a permanent account.

Accepted Answer

A) True 
 B)False  True

Question 3

Assets with no physical form are called ________.

Accepted Answer

A) current assets 
B) intangible assets 
C) long-term investments 
D) mortgaged investments 
A) current assets 
B) intangible assets 
C) long-term investments 
D) mortgaged investments B

Question 4

Which of the following statements is true of the worksheet?

Accepted Answer

A) The worksheet is a ledger. 
B) The worksheet is a document used to summarize data to prepare financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of a company. 
D) The worksheet is a journal. 
A) The worksheet is a ledger. 
B) The worksheet is a document used to summarize data to prepare financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of a company. 
D) The worksheet is a journal.

Question 5

Rosewood Inc.earned revenues of $15,000 and incurred expenses of $9,000.The company declared and paid cash dividends of $3,000.
-What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings 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 6

In an accounting cycle,which of the following steps takes place only at the end of the accounting period?

Accepted Answer

A) start with the beginning account balances 
B) journalize transactions that occur 
C) analyze transactions as they occur 
D) journalize adjusting entries 
A) start with the beginning account balances 
B) journalize transactions that occur 
C) analyze transactions as they occur 
D) journalize adjusting entries

Question 7

The current ratio shows the profitability of a firm.

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

The Depreciation Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 10

The following is the adjusted trial balance as of December 31,2015 of Current Times Watch Inc.:
  
- Provide the closing entry for the Income Summary account.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 11

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 12

Adjusting journal entries are prepared ________.

Accepted Answer

A) after preparing the adjusted trial balance 
B) after preparing the unadjusted trial balance 
C) after posting the closing entries 
D) after preparing the financial statements 
A) after preparing the adjusted trial balance 
B) after preparing the unadjusted trial balance 
C) after posting the closing entries 
D) after preparing the financial statements

Question 13

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 14

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 15

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 16

Which of the following is true of a completed worksheet?

Accepted Answer

A) The total debits in the unadjusted 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 of all the debit columns is equal to the total of all the credit columns. 
A) The total debits in the unadjusted 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 of all the debit columns is equal to the total of all the credit columns.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The adjusted trial balance of Michael's Shutterbug Photography at December 31,2015 is as follows:
   Using the information above,prepare a post-closing trial balance for Shutterbug Photography (dated December 31,2015.)

Accepted Answer

@#IMG-DLM& Notes:
 @#IMG-DLM&

Question 19

The beginning balance in the Common Stock account of Alpha Technologies Inc.was $80,000.The revenues and expenses amounted to $60,000 and $40,000,respectively.During the year,the company did not declare any dividends or issue common stock.The Common Stock account will have $100,000 at the end of the year.

Accepted Answer

A) True 
 B)False

Question 20

The smaller the current ratio,the higher is the ability of a firm to repay its current debts.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

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

The Accumulated Depreciation account is a permanent account.

Assets with no physical form are called ________.

Which of the following statements is true of the worksheet?

Rosewood Inc.earned revenues of $15,000 and incurred expenses of $9,000.The company declared and paid cash dividends of $3,000. -What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings account?

In an accounting cycle,which of the following steps takes place only at the end of the accounting period?

The current ratio shows the profitability of a firm.

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

The Depreciation Expense account is a temporary account.

The following is the adjusted trial balance as of December 31,2015 of Current Times Watch Inc.: - Provide the closing entry for the Income Summary account.

Under which of the following categories would Accounts Payable appear?

Adjusting journal entries are prepared ________.

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

Which of the following statements explains a classified balance sheet?

Property,plant,and equipment are categorized as ________.

Which of the following is true of a completed worksheet?

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

The adjusted trial balance of Michael's Shutterbug Photography at December 31,2015 is as follows: Using the information above,prepare a post-closing trial balance for Shutterbug Photography (dated December 31,2015.)

The smaller the current ratio,the higher is the ability of a firm to repay its current debts.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Accounting Information Systems

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