Question 1

The Common Stock account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Accepted Answer

A) True 
 B)False

Question 4

Net income (loss)is the difference between the total debits and the total credits in the income statement columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?

Accepted Answer

A) debit Accumulated Depreciation and credit Income Summary 
B) debit Depreciation Expense and credit Income Summary 
C) debit Income Summary and credit Accumulated Depreciation 
D) debit Income Summary and credit Depreciation Expense 
A) debit Accumulated Depreciation and credit Income Summary 
B) debit Depreciation Expense and credit Income Summary 
C) debit Income Summary and credit Accumulated Depreciation 
D) debit Income Summary and credit Depreciation Expense

Question 6

What is the result if the amount of Net Income for the year is less than the amount of the Dividends?

Accepted Answer

A) Retained Earnings increases 
B) Cash balance decreases 
C) Cash balance increases 
D) Retained Earnings decreases 
A) Retained Earnings increases 
B) Cash balance decreases 
C) Cash balance increases 
D) Retained Earnings decreases

Question 7

The Net Income of Maywood Inc.for the year is $25,000.The dividends declared during the year were $30,000.Which of the following statements is true?

Accepted Answer

A) Retained Earnings account decreases by $25,000. 
B) Retained Earnings account decreases by $5,000. 
C) Retained Earnings account increases by $30,000. 
D) Retained Earnings will remain the same. 
A) Retained Earnings account decreases by $25,000. 
B) Retained Earnings account decreases by $5,000. 
C) Retained Earnings account increases by $30,000. 
D) Retained Earnings will remain the same.

Question 8

Which of the following statements is true if the income statement debit column exceeds the income statement credit column of a worksheet?

Accepted Answer

A) The company incurred a net loss. 
B) The retained earnings account increased during the period. 
C) The company made a net profit. 
D) The liabilities are greater than assets. 
A) The company incurred a net loss. 
B) The retained earnings account increased during the period. 
C) The company made a net profit. 
D) The liabilities are greater than assets.

Question 9

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 10

The process by which companies produce their financial statements for a specific period is called the ________.

Accepted Answer

A) operating cycle 
B) closing process 
C) opening process 
D) accounting cycle 
A) operating cycle 
B) closing process 
C) opening process 
D) accounting cycle

Question 11

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 12

Assets are listed in the order of their ________ on the balance sheet.

Accepted Answer

A) magnitude 
B) dates of purchase 
C) liquidity 
D) durability 
A) magnitude 
B) dates of purchase 
C) liquidity 
D) durability

Question 13

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

Accepted Answer

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

Question 14

Assets that are expected to be converted to cash,sold,or used up during the next 12 months,or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

Accepted Answer

A) intangible 
B) plant 
C) long-term 
D) current 
A) intangible 
B) plant 
C) long-term 
D) current

Question 15

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

Accepted Answer

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

Question 16

Which of the following would be considered a long-term asset?

Accepted Answer

A) Accounts Payable 
B) Land 
C) Cash 
D) Common Stock 
A) Accounts Payable 
B) Land 
C) Cash 
D) Common Stock

Question 17

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

Accepted Answer

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

Question 18

Which of the following statements is true of the accounting cycle?

Accepted Answer

A) It takes place only at the end of an accounting period. 
B) It involves preparation of adjusting entries after the closing entries. 
C) It ignores the beginning balances of accounts. 
D) It is a process by which financial statements for a period are produced. 
A) It takes place only at the end of an accounting period. 
B) It involves preparation of adjusting entries after the closing entries. 
C) It ignores the beginning balances of accounts. 
D) It is a process by which financial statements for a period are produced.

Question 19

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 20

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

Accepted Answer

A) debit Insurance Expense and credit Income Summary 
B) debit Insurance Expense and credit Common Stock 
C) debit Retained Earnings and credit Insurance Expense 
D) debit Income Summary and credit Insurance Expense 
A) debit Insurance Expense and credit Income Summary 
B) debit Insurance Expense and credit Common Stock 
C) debit Retained Earnings and credit Insurance Expense 
D) debit Income Summary and credit Insurance Expense

Exam 4: Completing the Accounting Cycle

The Common Stock account is a permanent account.

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

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Net income (loss)is the difference between the total debits and the total credits in the income statement columns of the worksheet.

Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?

What is the result if the amount of Net Income for the year is less than the amount of the Dividends?

The Net Income of Maywood Inc.for the year is $25,000.The dividends declared during the year were $30,000.Which of the following statements is true?

Which of the following statements is true if the income statement debit column exceeds the income statement credit column of a worksheet?

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

The process by which companies produce their financial statements for a specific period is called the ________.

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

Assets are listed in the order of their ________ on the balance sheet.

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

Assets that are expected to be converted to cash,sold,or used up during the next 12 months,or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

Which of the following would be considered a long-term asset?

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

Which of the following statements is true of the accounting cycle?

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

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

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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