Exam 4: Completing the Accounting Cycle

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

A business starts each new time period with a zero beginning balance in permanent accounts.

The Salaries Payable account is a permanent account.

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

The beginning balance in the Sanchez,Capital account of a company was $10,000.The revenues and expenses were $240,000 and $120,000,respectively.During the year,Sanchez made withdrawals of $7,000.There were no new capital contributions during the year.The ending balance in Sanchez,Capital was $123,000.

The adjusted trial balance of Williams Landscaping at December 31,2019 is as follows: Debit Credit Cash \ 15,000 Accounts Receivable 30,000 Prepaid Insurance 7,500 Supplies 3,200 Land 40,000 Building 160,00 Accumulated Depreciation--Building \ 12,000 Equipment 75,000 Accumulated Depreciation--Equipment 8,500 Accounts Payable 12,00 Salaries Payable 2,000 Unearned Revenue 25,000 Mortgage Payable 100,00 Williams, Capital 21,290 Williams, Withdrawals 23,000 Service Revenue 289,000 Salaries Expense 61,000 Depreciation Expense--Building and Equipment 6,150 Supplies Expense 14,040 Insurance Expense 14,000 Utilities Expense 20,900 Total \ 469,790 \ 469,790 There were no new capital contributions during the year.Using the information above,prepare a post-closing trial balance for Williams Landscaping (dated December 31,2019).

Which of the following is the most liquid asset?

Which of the following steps must be completed before preparing the adjusted trial balance?

On December 31,2018,Action Services Company prepared the following accrual adjustment: Salaries Expense 1,000 Salaries Payable 1,000 Action uses reversing entries.Prepare the reversing entry on January 1,2019.Omit explanation.

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

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 a plant asset?

The process by which companies produce their financial statements for a specific period is called the ________.

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

Which of the following accounts has an ending balance equal to net income immediately before it is closed?

At the end of the period,the accounting cycle includes adjusting the accounts,preparing financial statements,and closing the accounts.

Your Business Advisor,a consulting company,uses reversing entries.On March 31,2018,the bookkeeper journalized and posted the following adjusting entry to accrue Utilities Expense: Utilities Expense 100 Utilities Payable 100 Which of the following entries is the correct reversing entry to be prepared on April 1,2018?

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

Which of the following should not be considered when comparing the Adjusted Trial Balance to the Post-Closing Trial Balance to ensure that no errors were made in the closing process?

Why are temporary accounts not included in the post-closing trial balance?