Question 1

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

Accepted Answer

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

Question 2

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 3

At the beginning of the year,the total stockholders' equity of Alpha Technologies Inc.was $80,000.The revenues and expenses were $60,000 and $40,000,respectively.The company did not declare dividends.No common stock was issued during the year.The total stockholders' equity at the end of the year will amount to $90,000.

Accepted Answer

A) True 
 B)False

Question 4

Revenue and expense accounts are closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 5

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n)________.

Accepted Answer

A) report form balance sheet 
B) unclassified form balance sheet 
C) account form balance sheet 
D) audited form balance sheet 
A) report form balance sheet 
B) unclassified form balance sheet 
C) account form balance sheet 
D) audited form balance sheet

Question 6

The formula for computing the current ratio is:

Accepted Answer

A) Current ratio = Current assets ÷ Total assets 
B) Current ratio = Current assets ÷ Total liabilities 
C) Current ratio = Current assets ÷ Stockholders' Equity 
D) Current ratio = Current assets ÷ Current liabilities 
A) Current ratio = Current assets ÷ Total assets 
B) Current ratio = Current assets ÷ Total liabilities 
C) Current ratio = Current assets ÷ Stockholders' Equity 
D) Current ratio = Current assets ÷ Current liabilities

Question 7

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 after closing net income or loss to the Retained Earnings 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 8

Maywood Inc.has a current ratio of 2.00.This indicates that the company has $2 in ________.

Accepted Answer

A) current liabilities for every $1 of current assets 
B) total assets for every $1 of current liabilities 
C) current assets for every $1 of current liabilities 
D) total assets for every $1 of current assets 
A) current liabilities for every $1 of current assets 
B) total assets for every $1 of current liabilities 
C) current assets for every $1 of current liabilities 
D) total assets for every $1 of current assets

Question 9

An income statement includes ________.

Accepted Answer

A) Land and Salaries Payable 
B) Common Stock,Retained Earnings,and Dividends 
C) Furniture and Cash 
D) Service Revenue and Utilities Expense 
A) Land and Salaries Payable 
B) Common Stock,Retained Earnings,and Dividends 
C) Furniture and Cash 
D) Service Revenue and Utilities Expense

Question 10

Which of the following accounts will have an ending balance after the closing process is completed?

Accepted Answer

A) Dividends 
B) Rent Expense 
C) Accumulated Depreciation 
D) Service Revenue 
A) Dividends 
B) Rent Expense 
C) Accumulated Depreciation 
D) Service Revenue

Question 11

The steps of the accounting cycle are followed throughout the accounting period.

Accepted Answer

A) True 
 B)False

Question 12

Reversing entries are ________.

Accepted Answer

A) the exact opposite of a prior adjusting entry 
B) dated the last day of the new period 
C) required according to Generally Accepted Accounting Principles (GAAP) 
D) expensive to record and time consuming 
A) the exact opposite of a prior adjusting entry 
B) dated the last day of the new period 
C) required according to Generally Accepted Accounting Principles (GAAP) 
D) expensive to record and time consuming

Question 13

The Accounts Receivable account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 14

The Salaries Payable account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 15

To which of the following accounts should the balance in the Income Summary account be closed?

Accepted Answer

A) Dividends 
B) Net Income 
C) Retained Earnings 
D) Service Revenue 
A) Dividends 
B) Net Income 
C) Retained Earnings 
D) Service Revenue

Question 16

The beginning balance in the Retained Earnings account of a company was $10,000.The revenues and expenses were $200,000 and $120,000,respectively.During the year,the company paid dividends of $4,000.The ending balance in Retained Earnings was $90,000.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of the worksheet?

Accepted Answer

A) The Net Income is recorded in the income statement credit column. 
B) The Net Income is recorded in the adjusted trial balance debit column. 
C) The Net Income is recorded in the income statement debit column. 
D) The Net Income is recorded in the balance sheet debit column. 
A) The Net Income is recorded in the income statement credit column. 
B) The Net Income is recorded in the adjusted trial balance debit column. 
C) The Net Income is recorded in the income statement debit column. 
D) The Net Income is recorded in the balance sheet debit column.

Question 18

Which of the following accounts has a balance equal to Net Income immediately before it is closed?

Accepted Answer

A) Income Summary 
B) Dividends 
C) Net Income 
D) Retained Earnings 
A) Income Summary 
B) Dividends 
C) Net Income 
D) Retained Earnings

Question 19

The balances of select accounts of Sandra Inc.as of December 31,2015 are given below:   The unearned revenue is the amount of cash received for services to be rendered in January,2016.
-What are the total current liabilities shown on the balance sheet?

Accepted Answer

A) $5,700 
B) $10,400 
C) $12,900 
D) $11,700 
A) $5,700 
B) $10,400 
C) $12,900 
D) $11,700

Question 20

A company has $130,000 in current assets; $500,000 in total assets; $90,000 in current liabilities,and $110,000 in total liabilities.Calculate the current ratio of the company.

Accepted Answer

A) 1.44 
B) 1.48 
C) 1.73 
D) 1.18 
A) 1.44 
B) 1.48 
C) 1.73 
D) 1.18

Exam 4: Completing the Accounting Cycle

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

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Revenue and expense accounts are closed to the Income Summary account.

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n)________.

The formula for computing the current ratio is:

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 after closing net income or loss to the Retained Earnings account?

Maywood Inc.has a current ratio of 2.00.This indicates that the company has $2 in ________.

An income statement includes ________.

Which of the following accounts will have an ending balance after the closing process is completed?

The steps of the accounting cycle are followed throughout the accounting period.

Reversing entries are ________.

The Accounts Receivable account is a permanent account.

The Salaries Payable account is a permanent account.

To which of the following accounts should the balance in the Income Summary account be closed?

The beginning balance in the Retained Earnings account of a company was $10,000.The revenues and expenses were $200,000 and $120,000,respectively.During the year,the company paid dividends of $4,000.The ending balance in Retained Earnings was $90,000.

Which of the following statements is true of the worksheet?

Which of the following accounts has a balance equal to Net Income immediately before it is closed?

The balances of select accounts of Sandra Inc.as of December 31,2015 are given below: The unearned revenue is the amount of cash received for services to be rendered in January,2016. -What are the total current liabilities shown on the balance sheet?

A company has $130,000 in current assets; $500,000 in total assets; $90,000 in current liabilities,and $110,000 in total liabilities.Calculate the current ratio of the company.

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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