Question 1

Which of the following are NOT included in a post-closing trial balance?

Accepted Answer

A)  Assets and liabilities 
B)  Retained Earnings and assets 
C)  Common Stock and liabilities 
D)  Revenues and expenses 
A)  Assets and liabilities 
B)  Retained Earnings and assets 
C)  Common Stock and liabilities 
D)  Revenues and expenses

Question 2

The following is the adjusted trial balance as of December 31, 2019 of Brooks Design Studio:
 $\begin{array}{|l|c|c|}
\hline \text { Account } & \text { Debit } & \text { Credit } \
\hline \text { Cash } & \$ 1,700 & \
\hline \text { Accounts Receivable } & 8,500 & \
\hline \text { Supplies } & 100 & \
\hline \text { Equipment } & 7,500 & \
\hline \text { Accumulated Depreciation-Equipment } & & \$ 2,000 \
\hline \text { Accounts Payable } & & 1,200 \
\hline \text { Salaries Payable } & & 800 \
\hline \text { Unearned Revenue } & & 600 \
\hline \text { Common Stock } & & 3,400 \
\hline \text { Dividends } & 2,300 & \
\hline \text { Service Revenue } & & 40,000 \
\hline \text { Salaries Expense } & 24,000 & \
\hline \text { Supplies Expense } & 2,300 & \
\hline \text { Depreciation Expense-Equipment } & 1,600 & \
\hline \text { Total } & \$ 48,000 & \$ 48,000 \
\hline
\end{array}$ Prepare the closing entry for expenses. Omit explanation.

Accepted Answer

\[\begin{array} { | l | r | r | } 
\hlin

Question 3

Patents, copyrights, and trademarks are examples of ________.

Accepted Answer

A)  short-term investments 
B)  fixed assets 
C)  long-term investments 
D)  intangible assets 
A)  short-term investments 
B)  fixed assets 
C)  long-term investments 
D)  intangible assets

Question 4

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)  An error was made. 
A)  The company incurred a net loss. 
B)  The retained earnings account increased during the period. 
C)  The company made a net profit. 
D)  An error was made.

Question 5

Which of the following statements regarding intangible assets is incorrect?

Accepted Answer

A)  Intangible assets have no physical form. 
B)  Intangible assets are valuable because of the special rights they carry. 
C)  Intangible assets are not reported on the balance sheet. 
D)  Intangible assets include the exclusive right to produce or sell an invention. 
A)  Intangible assets have no physical form. 
B)  Intangible assets are valuable because of the special rights they carry. 
C)  Intangible assets are not reported on the balance sheet. 
D)  Intangible assets include the exclusive right to produce or sell an invention.

Question 6

Regarding a classified balance sheet, which of the following statements regarding liabilities is incorrect?

Accepted Answer

A)  Many Notes Payable are long-term. 
B)  Current liabilities include Accounts Payable and Unearned Revenue. 
C)  Long-term liabilities must be paid either with cash or with goods and services within one year or the entity's operating cycle, if the cycle is longer than one year. 
D)  Liabilities are listed in the order in which they must be paid. 
A)  Many Notes Payable are long-term. 
B)  Current liabilities include Accounts Payable and Unearned Revenue. 
C)  Long-term liabilities must be paid either with cash or with goods and services within one year or the entity's operating cycle, if the cycle is longer than one year. 
D)  Liabilities are listed in the order in which they must be paid.

Question 7

In regards to a company using a computerized accounting system, which of the following statements is incorrect?

Accepted Answer

A)  Closing entries are completed in a matter of seconds. 
B)  The accountant must manually prepare the closing entries. 
C)  The software identifies the temporary accounts. 
D)  The Retained Earnings balance is up-to-date. 
A)  Closing entries are completed in a matter of seconds. 
B)  The accountant must manually prepare the closing entries. 
C)  The software identifies the temporary accounts. 
D)  The Retained Earnings balance is up-to-date.

Question 8

Wilson Engraving just completed operations for the year ending December 31, 2018. Accounts from the adjusted trial balance dated December 31, 2018 are listed in alphabetical order below:
   Requirement:
a. Prepare the closing entries. Omit explanations.
b. Prepare, in good form, the income statement, statement of retained earnings, and balance sheet.
c. Compute the current ratio. Label your work. Comment on the current ratio.

Accepted Answer

a.
 @#IMG-DLM& b.
 Wilson Engraving
Income Stateme

Question 9

The post-closing trial balance shows the updated Retained Earnings balance.

Accepted Answer

A) True 
 B)False

Question 10

Net income or net loss is the balancing amount on the worksheet and should always be entered on the side that makes the debit and credit columns balance.

Accepted Answer

A) True 
 B)False

Question 11

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 12

On December 31, 2018, Absolute Services, Inc. prepared the following accrual adjustment:
 $$\begin{array} { | c | r | r | } 
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Salaries Payable } & & 1,000 \
\hline
\end{array}$$ The company paid salaries amounting to $1,500 on January 7, 2019 for the two-week pay period that ended on January 6, 2019. Journalize the entries for January 1, 2019 and January 7, 2019, assuming the company uses reversing entries. Omit explanations.

Accepted Answer

On January 1, Absolute Services, Inc. wi

Question 13

In the closing process, the Dividends account is closed to the Retained Earnings account.

Accepted Answer

A) True 
 B)False

Question 14

The balances of select accounts of McMurray, Inc. as of December 31, 2018 are given below: $$\begin{array} { | l | r | } 
\hline \text { Notes Payable-short-term } & \$ 1,300 \
\hline \text { Salaries Payable } & 3,000 \
\hline \text { Notes Payable-long-term } & 24,000 \
\hline \text { Accounts Payable } & 3,300 \
\hline \text { Unearned Revenue } & 1,000 \
\hline \text { Interest Payable } & 2,400 \
\hline
\end{array}$$ The Unearned Revenue is the amount of cash received for services to be rendered in January 2019. Interest Payable will be paid on February 5, 2019. What are the total long-term liabilities shown on the balance sheet at December 31, 2018?

Accepted Answer

A)  $1,300 
B)  $3,000 
C)  $4,300 
D)  $24,000 
A)  $1,300 
B)  $3,000 
C)  $4,300 
D)  $24,000

Question 15

List the steps of the accounting cycle that take place at the end of the period.

Accepted Answer

Step 4. Compute the unadjusted balance i

Question 16

Which of the following entries is 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 17

Only permanent accounts appear on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  Accounts Payable 
B)  Land 
C)  Office Supplies 
D)  Retained Earnings 
A)  Accounts Payable 
B)  Land 
C)  Office Supplies 
D)  Retained Earnings

Question 19

As a part of the closing process, revenues and expenses may be closed to a temporary account called the Net Income (Loss).

Accepted Answer

A) True 
 B)False

Question 20

The financial statement that reports assets, liabilities, and stockholders' equity as of the last day of the period is called the ________.

Accepted Answer

A)  income statement 
B)  statement of retained earnings 
C)  balance sheet 
D)  unadjusted trial balance 
A)  income statement 
B)  statement of retained earnings 
C)  balance sheet 
D)  unadjusted trial balance

Exam 4: Completing the Accounting Cycle

Which of the following are NOT included in a post-closing trial balance?

Patents, copyrights, and trademarks are examples of ________.

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 statements regarding intangible assets is incorrect?

Regarding a classified balance sheet, which of the following statements regarding liabilities is incorrect?

In regards to a company using a computerized accounting system, which of the following statements is incorrect?

The post-closing trial balance shows the updated Retained Earnings balance.

Net income or net loss is the balancing amount on the worksheet and should always be entered on the side that makes the debit and credit columns balance.

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

In the closing process, the Dividends account is closed to the Retained Earnings account.

List the steps of the accounting cycle that take place at the end of the period.

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

Only permanent accounts appear on the post-closing trial balance.

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

As a part of the closing process, revenues and expenses may be closed to a temporary account called the Net Income (Loss).

The financial statement that reports assets, liabilities, and stockholders' equity as of the last day of the period is called the ________.

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

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

Understanding Accounting Information Systems and their Components

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