Question 1

Assets are listed in the order of their ________ on the balance sheet.

Accepted Answer

A) magnitude 
B) dates of purchase 
C) liquidity 
D) durability 
A) magnitude 
B) dates of purchase 
C) liquidity 
D) durability

Question 2

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

Accepted Answer

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

Question 4

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 5

The beginning balance in the Retained Earnings account of a company was $11,000.The revenues and expenses were $220,000 and $170,000,respectively.During the year,the company paid dividends of $4,000.The ending balance in Retained Earnings was $61,000.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The Service Revenue account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 8

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true of the worksheet?

Accepted Answer

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

Question 10

The permanent accounts-assets,liabilities,and stockholders' equity-are closed to the Common Stock account.

Accepted Answer

A) True 
 B)False

Question 11

The current ratio measures a company's ________.

Accepted Answer

A) overall ability to pay liabilities 
B) ability to pay current liabilities with current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow 
A) overall ability to pay liabilities 
B) ability to pay current liabilities with current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow

Question 12

The Service Revenue account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 13

The Common Stock account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 14

The smaller the current ratio,the higher the firm's ability to repay its current debts.

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

Which of the following accounts will be included in a post-closing trial balance?

Accepted Answer

A) Accumulated Depreciation-Building 
B) Rent Expense 
C) Interest Expense 
D) Service Revenue 
A) Accumulated Depreciation-Building 
B) Rent Expense 
C) Interest Expense 
D) Service Revenue

Question 17

Refer to the following adjusted trial balance. $\begin{array}{|l|r|r|}
\hline \text { Accounts } & \text { Debit } & \text { Credit } \
\hline\text { Cash } & \$ 15,500 \
\hline \text { Accounts Receivable } & 8,400 \
\hline \text { Office Supplies } & 900 \
\hline \text { Equipment } & 9,400 & \
\hline\text { Accumulated Depreciation- Equipment } & & \$ 3,000 \
\hline \text { Accounts Payable } & & 1,800 \
\hline \text { Salaries Payable } & & 700 \
\hline \text { Unearned Revenue } & & 550 \
\hline \text { Common Stock } & & 3,900 \
\hline \text { Dividends } & 1,000 &\
\hline \text { Service Revenue } & & 52,050 \
\hline \text { Salaries Expense } & 23,000 & \
\hline \text { Supplies Expense } & 2,200 & \
\hline \text { Depreciation Expense- Equipment } & \underline{1,600} & \
\hline \text { Total } & \$ 62,000 & \$ 62,000 \
\hline
\end{array}$
 What will the final ending balance in the Retained Earnings account be after posting the closing entries?

Accepted Answer

A) $24,250 
B) $25,250 
C) $29,150 
D) $26,250 
A) $24,250 
B) $25,250 
C) $29,150 
D) $26,250

Question 18

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

Accepted Answer

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

Question 19

The following is the adjusted trial balance as of December 31,2017 of Martin Watch,Inc.:
   Provide the closing entry for revenues.

Accepted Answer

\[\begin{array} { | c | r | r

Question 20

Maywood,Inc.has a current ratio of 6.00.This indicates that the company has $6 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

Exam 4: Completing the Accounting Cycle

Assets are listed in the order of their ________ on the balance sheet.

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

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

The beginning balance in the Retained Earnings account of a company was $11,000.The revenues and expenses were $220,000 and $170,000,respectively.During the year,the company paid dividends of $4,000.The ending balance in Retained Earnings was $61,000.

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

The Service Revenue account is a temporary account.

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

Which of the following statements is true of the worksheet?

The permanent accounts-assets,liabilities,and stockholders' equity-are closed to the Common Stock account.

The current ratio measures a company's ________.

The Service Revenue account is a permanent account.

The Common Stock account is a permanent account.

The smaller the current ratio,the higher the firm's ability to repay its current debts.

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

Which of the following accounts will be included in a post-closing trial balance?

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

The following is the adjusted trial balance as of December 31,2017 of Martin Watch,Inc.: Provide the closing entry for revenues.

Maywood,Inc.has a current ratio of 6.00.This indicates that the company has $6 in ________.

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

Filters