Question 1

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 2

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 3

When preparing a worksheet, net income is recorded in the ________.

Accepted Answer

A)  income statement credit column 
B)  adjusted trial balance debit column 
C)  income statement debit column 
D)  balance sheet debit column 
A)  income statement credit column 
B)  adjusted trial balance debit column 
C)  income statement debit column 
D)  balance sheet debit column

Question 4

The Cash account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The Income Summary account shows:
   a. What does this indicate?
b. Prepare the entry to close Income Summary. Omit explanation.

Accepted Answer

a.@#LAT-DLM& b.
 \[\begin{array} { | l |

Question 7

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

Accepted Answer

A)  Unearned Revenue 
B)  Accumulated Depreciation 
C)  Service Revenue 
D)  Prepaid Insurance 
A)  Unearned Revenue 
B)  Accumulated Depreciation 
C)  Service Revenue 
D)  Prepaid Insurance

Question 8

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 9

Which of the following accounts would appear in the income statement debit column of the worksheet?

Accepted Answer

A)  Unearned Revenue 
B)  Service Revenue 
C)  Depreciation Expense 
D)  Prepaid Insurance 
A)  Unearned Revenue 
B)  Service Revenue 
C)  Depreciation Expense 
D)  Prepaid Insurance

Question 10

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 11

Griffen Service Company had the following unadjusted balances at December 31, 2018: Salaries Payable, $0; Salaries Expense, $12,000. The following transactions took place on December 31, 2018:
Accrued Salaries Expense, $5,000
Closed the Salaries Expense account.
The following transaction took place on January 4, 2019:
Paid salaries of $6,000. This payment included $5,000 that was accrued on December 31, 2018 and $1,000 for the first few days in January 2019.
Prepare the journal entries for January 1, 2019 and January 4, 2019, assuming that reversing entries were made. Omit explanations.

Accepted Answer

1/1/19
 \[\begin{array} { | c | r | r |

Question 12

The Service Revenue account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 13

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

The balances of select accounts of Elliott, Inc. as of December 31, 2018 are given below: $$\begin{array} { | l | r | } 
\hline \text { Notes Payable-short-term } & \$ 1,200 \
\hline \text { Salaries Payable } & 6,000 \
\hline \text { Notes Payable-long-term } & 20,000 \
\hline \text { Accounts Payable } & 3,000 \
\hline \text { Unearned Revenue } & 1,000 \
\hline \text { Interest Payable } & 2,500 \
\hline
\end{array}$$ The Unearned Revenue is the amount of cash received for services to be rendered in January, 2019. The Interest Payable is due on February 15, 2019. What are the total current liabilities shown on the balance sheet at December 31, 2018?

Accepted Answer

A)  $5,500 
B)  $11,200 
C)  $13,700 
D)  $12,500 
A)  $5,500 
B)  $11,200 
C)  $13,700 
D)  $12,500

Question 16

Which of the following would be considered the weakest current ratio?

Accepted Answer

A)  0.55 
B)  0.90 
C)  1.25 
D)  2.30 
A)  0.55 
B)  0.90 
C)  1.25 
D)  2.30

Question 17

Salaries Payable, Accounts Payable, and Unearned Revenue are examples of ________.

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

When a business uses a computerized accounting system, the closing entries must be manually recorded.

Accepted Answer

A) True 
 B)False

Question 20

The Accounts Payable account is a temporary account.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Adjusting journal entries are prepared ________.

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

When preparing a worksheet, net income is recorded in the ________.

The Cash account is a temporary account.

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

The Income Summary account shows: a. What does this indicate? b. Prepare the entry to close Income Summary. Omit explanation.

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

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

Which of the following accounts would appear in the income statement debit column of the worksheet?

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

The Service Revenue account is a permanent account.

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

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

Which of the following would be considered the weakest current ratio?

Salaries Payable, Accounts Payable, and Unearned Revenue are examples of ________.

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

When a business uses a computerized accounting system, the closing entries must be manually recorded.

The Accounts Payable account is a temporary account.

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

Filters