Question 1

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 2

The permanent accounts-assets,liabilities,and stockholders' equity-are closed to the Common Stock account.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Under which of the following categories would bonds held as an investment for less than a year 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 5

Swan Song's adjusted trial balance as of December 31,2014 is given below:   Compute the current ratio.

Accepted Answer

A) 2.07 
B) 1.83 
C) 1.64 
D) 2.54 
A) 2.07 
B) 1.83 
C) 1.64 
D) 2.54

Question 6

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 7

Refer to the following adjusted trial balance.
   What will be the final ending balance in the Retained Earnings account after posting the closing entries?

Accepted Answer

A) $17,800 
B) $20,800 
C) $24,200 
D) $23,800 
A) $17,800 
B) $20,800 
C) $24,200 
D) $23,800

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A balance sheet prepared in the report form,lists the assets on the left,and the liabilities and stockholders' equity on the right.

Accepted Answer

A) True 
 B)False

Question 10

Notes Payable due within two years are classified as ________.

Accepted Answer

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

Question 11

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 12

Permanent accounts are not closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) Dividends 
B) Salaries Expense 
C) Common Stock 
D) Office Supplies Expense 
A) Dividends 
B) Salaries Expense 
C) Common Stock 
D) Office Supplies Expense

Question 14

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

Accepted Answer

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

Question 15

Reversing entries ease the burden of accounting for transactions in a later period.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

The worksheet helps accountants to ________.

Accepted Answer

A) make the adjusted trial balance 
B) prepare the financial statements 
C) prepare the unadjusted trial balance 
D) maintain books of accounts without a journal 
A) make the adjusted trial balance 
B) prepare the financial statements 
C) prepare the unadjusted trial balance 
D) maintain books of accounts without a journal

Question 18

Revenues and expenses are transferred to the ________ account before their final transfer into the Retained Earnings account.

Accepted Answer

A) Net Income 
B) Income Summary 
C) Dividends 
D) Assets 
A) Net Income 
B) Income Summary 
C) Dividends 
D) Assets

Question 19

The entries that transfer the revenue,expense,and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________.

Accepted Answer

A) closing entries 
B) opening entries 
C) adjusting entries 
D) temporary accounts 
A) closing entries 
B) opening entries 
C) adjusting entries 
D) temporary accounts

Question 20

The last two columns generally found on the right side of the worksheet are the income statement columns.

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 permanent accounts-assets,liabilities,and stockholders' equity-are closed to the Common Stock account.

Where does Net Income appear on a worksheet?

Under which of the following categories would bonds held as an investment for less than a year appear?

Swan Song's adjusted trial balance as of December 31,2014 is given below: Compute the current ratio.

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

Refer to the following adjusted trial balance. What will be the final ending balance in the Retained Earnings account after posting the closing entries?

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

A balance sheet prepared in the report form,lists the assets on the left,and the liabilities and stockholders' equity on the right.

Notes Payable due within two years are classified as ________.

Buildings,land,and equipment are classified as ________.

Permanent accounts are not closed at the end of the accounting period.

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

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

Reversing entries ease the burden of accounting for transactions in a later period.

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 ________.

The worksheet helps accountants to ________.

Revenues and expenses are transferred to the ________ account before their final transfer into the Retained Earnings account.

The entries that transfer the revenue,expense,and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________.

The last two columns generally found on the right side of the worksheet are the income statement columns.

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

Filters