Question 1

The last two columns generally found on the right side of the worksheet are the income statement columns.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Accepted Answer

A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment 
A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment

Question 4

Dogwood,Inc.earned revenues of $11,000 and incurred expenses of $7,500.The company declared and paid cash dividends of $2,000.What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings account?

Accepted Answer

A) debit balance of $3,500 
B) debit balance of $1,500 
C) credit balance of $3,500 
D) credit balance of $11,000 
A) debit balance of $3,500 
B) debit balance of $1,500 
C) credit balance of $3,500 
D) credit balance of $11,000

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

List the steps of the accounting cycle that take place during the period.

Accepted Answer

Step 1. Start with beginning a

Question 7

The entries that transfer the revenue,expense,and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________.

Accepted Answer

A) closing entries 
B) opening entries 
C) adjusting entries 
D) temporary accounts 
A) closing entries 
B) opening entries 
C) adjusting entries 
D) temporary accounts

Question 8

The net income of Harriet,Inc.for the year is $35,000.The dividends declared during the year were $43,000.Which of the following statements is true?

Accepted Answer

A) Retained Earnings account decreases by $35,000. 
B) Retained Earnings account decreases by $8,000. 
C) Retained Earnings account increases by $43,000. 
D) Retained Earnings will remain the same. 
A) Retained Earnings account decreases by $35,000. 
B) Retained Earnings account decreases by $8,000. 
C) Retained Earnings account increases by $43,000. 
D) Retained Earnings will remain the same.

Question 9

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

Question 10

The Depreciation Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 11

Under which of the following categories would Accounts Receivable appear?

Accepted Answer

A) Current assets 
B) Current liabilities 
C) Long-term assets 
D) Long-term liabilities 
A) Current assets 
B) Current liabilities 
C) Long-term assets 
D) Long-term liabilities

Question 12

Swan Song's adjusted trial balance as of December 31,2016 is given below:   Compute the current ratio.(Round your answer to two decimals. )

Accepted Answer

A) 7.01 
B) 2.07 
C) 1.80 
D) 2.73 
A) 7.01 
B) 2.07 
C) 1.80 
D) 2.73

Question 13

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 14

An account that is not closed at the end of the period is called a(n)________.

Accepted Answer

A) expense account 
B) temporary account 
C) permanent account 
D) revenue account 
A) expense account 
B) temporary account 
C) permanent account 
D) revenue account

Question 15

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

Accepted Answer

A) assets,liabilities,and dividends 
B) revenues,expenses,and dividends 
C) assets,liabilities,and stockholders' equity 
D) revenues,expenses,and stockholders' equity 
A) assets,liabilities,and dividends 
B) revenues,expenses,and dividends 
C) assets,liabilities,and stockholders' equity 
D) revenues,expenses,and stockholders' equity

Question 16

A reversing entry ________.

Accepted Answer

A) is required by GAAP 
B) is dated the last day of an accounting period 
C) exactly resembles the prior adjusting entry prepared in the books 
D) switches the debit and the credit of a previous entry 
A) is required by GAAP 
B) is dated the last day of an accounting period 
C) exactly resembles the prior adjusting entry prepared in the books 
D) switches the debit and the credit of a previous entry

Question 17

Permanent accounts are not closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 18

Liquidity is a measure of how ________.

Accepted Answer

A) quickly an asset may be converted into cash 
B) long an asset can be used 
C) easily an asset can be exchanged for another asset 
D) short an operating cycle is 
A) quickly an asset may be converted into cash 
B) long an asset can be used 
C) easily an asset can be exchanged for another asset 
D) short an operating cycle is

Question 19

In an accounting cycle,an analysis of transactions is performed at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 20

A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders' equity below.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The last two columns generally found on the right side of the worksheet are the income statement columns.

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

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Dogwood,Inc.earned revenues of $11,000 and incurred expenses of $7,500.The company declared and paid cash dividends of $2,000.What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings account?

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

List the steps of the accounting cycle that take place during the period.

The entries that transfer the revenue,expense,and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________.

The net income of Harriet,Inc.for the year is $35,000.The dividends declared during the year were $43,000.Which of the following statements is true?

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

The Depreciation Expense account is a temporary account.

Under which of the following categories would Accounts Receivable appear?

Swan Song's adjusted trial balance as of December 31,2016 is given below: Compute the current ratio.(Round your answer to two decimals. )

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

An account that is not closed at the end of the period is called a(n)________.

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

A reversing entry ________.

Permanent accounts are not closed at the end of the accounting period.

Liquidity is a measure of how ________.

In an accounting cycle,an analysis of transactions is performed at the end of each accounting period.

A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders' equity below.

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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