Question 1

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 2

Clear Cleaning Services pays out wages every week on Friday.Payroll expense totals $4,000 per week,based on a five-day week.The month of June ended on a Thursday.On Thursday,June 30,Clear made the following accrual adjustment:
 $$\begin{array} { | c | r | r | } 
\hline \text { Wages Expense } & 3,200 & \
\hline \text { Wage Payable } & & 3,200 \
\hline
\end{array}$$ At the same time,they prepared the following reversing entry to be booked on July 1:
 $$\begin{array} { | c | r | r | } 
\hline \text { Wages Payable } & 3,200 & \
\hline \text { Wages Expense } & & 3,200 \
\hline
\end{array}$$ On Friday afternoon,when wages were paid,what journal entry was made?

Accepted Answer

The answer of Clear Cleaning Services pays out wages every...

Question 3

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

Accepted Answer

A) True 
 B)False

Question 4

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500.Interest Expense in the income statement column is $9,000.Which of the following entries would have caused this difference?

Accepted Answer

A) a $9,000 credit to Interest Expense in the worksheet's adjustments column 
B) a $9,000 credit to Interest Payable in the worksheet's adjustments column 
C) a $5,500 debit to Interest Expense in the worksheet's adjustments column 
D) a $5,500 credit to Interest Expense in the worksheet's adjustments column 
A) a $9,000 credit to Interest Expense in the worksheet's adjustments column 
B) a $9,000 credit to Interest Payable in the worksheet's adjustments column 
C) a $5,500 debit to Interest Expense in the worksheet's adjustments column 
D) a $5,500 credit to Interest Expense in the worksheet's adjustments column

Question 5

The Common Stock account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Answer the following questions regarding the current ratio:

Accepted Answer

The answer of Answer the following questions regarding the current...

Question 8

The worksheet helps accountants to ________.

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

Use the Adjusted Trial Balance for Anderson Service Company to prepare the classified balance sheet at September 30,2016.Use the report form.You must compute the ending balance of Retained Earnings.
 Andersan Servire Carnpany
Adjusted Trial Balance
September 3?, 2016

Accepted Answer

Net Income: Service Revenue $27,500 less

Question 11

Calculate the current ratio using the following information: (Round your answer to two decimals. ) $$\begin{array} { l l } 
\text { Cash } & \$ 6,000 \
\text { Accounts Receivable } & 1,300 \
\text { Prepaid Rent } & 1,100 \
\text { Land } & 20,000 \
\text { Equipment } & 6,000 \
\text { Accumulated Depreciation } & 1,000 \
\text { Accounts Payable } & 5,000 \
\text { Salaries Payable } & 1,000 \
\text { Notes Payable-long term } & 8, 000
\end{array}$$

Accepted Answer

A) 1.40 
B) 1.68 
C) 1.44 
D) 1.22 
A) 1.40 
B) 1.68 
C) 1.44 
D) 1.22

Question 12

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

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

The following is the adjusted trial balance as of December 31,2017 of Peri Brothers,Inc.:
   Provide the closing entry for expenses.

Accepted Answer

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

Question 15

Ellis Service Company had the following unadjusted balances at December 31,2016: Salaries Payable,$0; Salaries Expense,$12,000.The following transactions took place on December 31,2016:
Accrued Salaries Expense,$5,000
Closed the Salaries Expense account.
The following transaction took place on January 4,2017:
Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2016 and $1,000 for the first few days in January 2017.
Prepare the journal entry for January 4,2017,assuming that reversing entries were not made.

Accepted Answer

The answer of Ellis Service Company had the following unadjusted...

Question 16

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

Accepted Answer

A) 0.75 
B) 0.80 
C) 1.25 
D) 2.20 
A) 0.75 
B) 0.80 
C) 1.25 
D) 2.20

Question 17

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 18

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 19

Reversing entries are dated on the first day of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 4: Completing the Accounting Cycle

Where does net income appear on a worksheet?

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500.Interest Expense in the income statement column is $9,000.Which of the following entries would have caused this difference?

The Common Stock account is a temporary account.

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

Answer the following questions regarding the current ratio:

The worksheet helps accountants to ________.

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

Use the Adjusted Trial Balance for Anderson Service Company to prepare the classified balance sheet at September 30,2016.Use the report form.You must compute the ending balance of Retained Earnings. Andersan Servire Carnpany Adjusted Trial Balance September 3?, 2016

Calculate the current ratio using the following information: (Round your answer to two decimals. ) Cash \ 6,000 Accounts Receivable 1,300 Prepaid Rent 1,100 Land 20,000 Equipment 6,000 Accumulated Depreciation 1,000 Accounts Payable 5,000 Salaries Payable 1,000 Notes Payable-long term 8,000

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

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

The following is the adjusted trial balance as of December 31,2017 of Peri Brothers,Inc.: Provide the closing entry for expenses.

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

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

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 ________.

Reversing entries are dated on the first day of the new accounting period.

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.

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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