Question 1

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 2

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

Accepted Answer

A)  assets, liabilities, and Owner, Withdrawals 
B)  revenues, expenses, and Owner, Withdrawals 
C)  assets, liabilities, and owner's equity 
D)  revenues, expenses, and owner's equity 
A)  assets, liabilities, and Owner, Withdrawals 
B)  revenues, expenses, and Owner, Withdrawals 
C)  assets, liabilities, and owner's equity 
D)  revenues, expenses, and owner's equity

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In an accounting cycle,which of the following steps takes place only at the end of the accounting period?

Accepted Answer

A)  start with the beginning account balances 
B)  journalize transactions that occur 
C)  analyze transactions as they occur 
D)  journalize adjusting entries 
A)  start with the beginning account balances 
B)  journalize transactions that occur 
C)  analyze transactions as they occur 
D)  journalize adjusting entries

Question 5

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 6

A classified balance sheet can be presented in either a report or an account form.Although either is acceptable,the report form is more popular.

Accepted Answer

A) True 
 B)False

Question 7

The balances of select accounts of Elliott Company as of December 31,2018 are given below: $$\begin{array} { | l | r | } 
\hline \text { Notes Payable-short-term } & \$ 1,200 \
\hline \text { Salaries Payable } & 3,000 \
\hline \text { Notes Payable-long-term } & 20,000 \
\hline \text { Accounts Payable } & 3,500 \
\hline \text { Unearned Revenue } & 3,000 \
\hline \text { Interest Payable } & 2,400 \
\hline
\end{array}$$ 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)  $5,900 
B)  $10,700 
C)  $13,100 
D)  $11,900 
A)  $5,900 
B)  $10,700 
C)  $13,100 
D)  $11,900

Question 8

Brownstone Company has a current ratio of 4.00.This indicates that the company has $4 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

Question 9

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 10

The income statement section of the worksheet includes ________.

Accepted Answer

A)  Land and Salaries Payable 
B)  Owner, Capital and Owner, Withdrawals 
C)  Furniture and Cash 
D)  Service Revenue and Utilities Expense 
A)  Land and Salaries Payable 
B)  Owner, Capital and Owner, Withdrawals 
C)  Furniture and Cash 
D)  Service Revenue and Utilities Expense

Question 11

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 12

The ending balance in the Owner,Capital account is shown on the income statement columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 13

Asset and liability accounts may be closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 14

Under which of the following categories would Accounts Payable 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 15

Complete 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,Complete made the following accrual adjustment:
 $\begin{array}{|l|c|c|}
\hline \text { Wages Expense } & 3,200 \
\hline \text { Wage Payable } &&3,200 \
\hline
\end{array}$
 At the same time,they prepared the following reversing entry to be booked on July 1:
 $\begin{array}{|l|c|c|}
\hline \text { Wages Payable  } & 3,200 \
\hline \text { Wage Expense } &&3,200 \
\hline
\end{array}$
 On Friday afternoon,when wages were paid,what journal entry was made? Omit explanation.

Accepted Answer

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

Question 16

The operating cycle is the time span required for a business to repay its long-term liabilities.

Accepted Answer

A) True 
 B)False

Question 17

The permanent accounts-assets,liabilities,and owner's equity-are closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 18

Logan Service Company earned revenues of $100,000 and incurred expenses of $107,000.The owner's name of the sole proprietorship is James Logan.Prepare the entry to close the Income Summary account.Omit explanation.

Accepted Answer

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

Question 19

Regarding a classified balance sheet,which of the following statements regarding liabilities is incorrect?

Accepted Answer

A)  Many Notes Payable are long-term. 
B)  Current liabilities include Accounts Payable and Unearned Revenue. 
C)  Long-term liabilities must be paid either with cash or with goods and services within one year or the entity's operating cycle, if the cycle is longer than one year. 
D)  Liabilities are listed in the order in which they must be paid 
A)  Many Notes Payable are long-term. 
B)  Current liabilities include Accounts Payable and Unearned Revenue. 
C)  Long-term liabilities must be paid either with cash or with goods and services within one year or the entity's operating cycle, if the cycle is longer than one year. 
D)  Liabilities are listed in the order in which they must be paid

Question 20

If a business has a net loss,the Income Summary T account would hold a debit balance before the account is closed.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

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

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

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

In an accounting cycle,which of the following steps takes place only at the end of the accounting period?

Under which of the following categories would Accounts Receivable appear?

A classified balance sheet can be presented in either a report or an account form.Although either is acceptable,the report form is more popular.

Brownstone Company has a current ratio of 4.00.This indicates that the company has $4 in ________.

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

The income statement section of the worksheet includes ________.

Where does net income appear on a worksheet?

The ending balance in the Owner,Capital account is shown on the income statement columns of the worksheet.

Asset and liability accounts may be closed to the Income Summary account.

Under which of the following categories would Accounts Payable appear?

The operating cycle is the time span required for a business to repay its long-term liabilities.

The permanent accounts-assets,liabilities,and owner's equity-are closed to the Income Summary account.

Logan Service Company earned revenues of $100,000 and incurred expenses of $107,000.The owner's name of the sole proprietorship is James Logan.Prepare the entry to close the Income Summary account.Omit explanation.

Regarding a classified balance sheet,which of the following statements regarding liabilities is incorrect?

If a business has a net loss,the Income Summary T account would hold a debit balance before the account is closed.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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