Question 1

In preparing adjustments on the work sheet,which of the following accounts most likely would be added to the Account Name column?

Accepted Answer

A)  Telephone Expense 
B)  Retained Earnings 
C)  Income Taxes Payable 
D)  Accumulated Depreciation-Equipment 
A)  Telephone Expense 
B)  Retained Earnings 
C)  Income Taxes Payable 
D)  Accumulated Depreciation-Equipment

Question 2

Match between columns
                        Premises:  A note to the financial statements indicating a change in inventory methods is omitted.
 When management is unsure of which estimates to use in a given situation, the estimate resulting in the largest net income is always used.
 In 2009, a company uses straight-line depreciation and in 2010 the company uses declining-balance depreciation.
 A small company expenses all expenditures under $10,000.
 A small company purchases a $50,000 computer to save $3,000 per year in bookkeeping wages.

Accepted Answer

The Answer of Consistency and Materiality and Conservatism and Full is...

Question 3

From the following items in the Income Statement columns of the work sheet of ElKay Corporation at December 31,2010,prepare the closing entries,assuming that a $75 dividend was paid during the period (omit explanations).
  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\quad $ $\quad $$\text {Income Statement } $
$\begin{array} { | l | r | r |} 
\hline & \text { Debit } & \text { Cradit } \
\hline \text { Service Revenue } & & 1,800 \
\hline \text { Wages Expense } & 1,200 & \
\hline \text { Rent Exgense } & 400 & \
\hline \text { Supplies Exgense } & 200 & \
\hline \text { Income Taxes E Egpense } & 100 & \
\hline \text { Depreciation Expense-Bullding } & 150 & \
\hline & 2,050 & 1,800 \
 \text { Net Loss } & & 250 \
\hline & 2,050 & 2,050 \
\hline
\end{array}$

Accepted Answer

The answer of From the following items in the Income...

Question 4

The total assets and the total liabilities and stockholders' equity on the balance sheet are the same as the totals of the Balance Sheet columns on the work sheet.

Accepted Answer

A) True 
 B)False

Question 5

The balances of the Accumulated Depreciation accounts will appear on the credit side of the work sheet's Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 6

Which work sheet columns should contain "key letters"?

Accepted Answer

A)  Adjustments 
B)  Adjusted Trial Balance 
C)  Trial Balance 
D)  Balance Sheet 
A)  Adjustments 
B)  Adjusted Trial Balance 
C)  Trial Balance 
D)  Balance Sheet

Question 7

A work sheet is more useful for a small company than for a large one.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following accounts most likely would have an amount contained in the Income Statement columns of a work sheet?

Accepted Answer

A)  Common Stock 
B)  Office Supplies 
C)  Dividends 
D)  Income Taxes Expense 
A)  Common Stock 
B)  Office Supplies 
C)  Dividends 
D)  Income Taxes Expense

Question 9

Match between columns
                        Premises:  Interest Income
 Accumulated Depreciation
 Sales Returns and Allowances
 Inventories
 Company President's Salary
 Utilities Expense for Store
 Interest Expense
 Freight-Out Expense
 Office Salaries Expense for Headquarters
 Interest Receivable

Accepted Answer

The Answer of Revenues and Cost of goods sold and is...

Question 10

Which of the following accounts probably would have a smaller balance in the Adjusted Trial Balance columns of a work sheet than in the Trial Balance columns?

Accepted Answer

A)  Prepaid Advertising 
B)  Wages Payable 
C)  Accumulated Depreciation-Equipment 
D)  Wages Expense 
A)  Prepaid Advertising 
B)  Wages Payable 
C)  Accumulated Depreciation-Equipment 
D)  Wages Expense

Question 11

In preparing closing entries,which of the following columns of the work sheet are the most helpful?

Accepted Answer

A)  Adjustments columns 
B)  Income Statement columns 
C)  Adjusted Trial Balance columns 
D)  Balance Sheet columns 
A)  Adjustments columns 
B)  Income Statement columns 
C)  Adjusted Trial Balance columns 
D)  Balance Sheet columns

Question 12

Which of the following accounts most likely would have an amount contained in every set of columns but the Balance Sheet columns of a work sheet?

Accepted Answer

A)  Dividends 
B)  Depreciation Expense 
C)  Unearned Revenue 
D)  Wages Expense 
A)  Dividends 
B)  Depreciation Expense 
C)  Unearned Revenue 
D)  Wages Expense

Question 13

In preparing adjustments on the work sheet,which of the following accounts could not be added to the Account Name column?

Accepted Answer

A)  Notes Payable 
B)  Interest Receivable 
C)  Interest Income 
D)  Depreciation Expense 
A)  Notes Payable 
B)  Interest Receivable 
C)  Interest Income 
D)  Depreciation Expense

Question 14

Closing entries may be prepared by referring solely to the Income Statement columns of the work sheet.

Accepted Answer

A) True 
 B)False

Question 15

The Adjusted Trial Balance columns of the work sheet are prepared by combining the Trial Balance and Adjustments columns of the work sheet.

Accepted Answer

A) True 
 B)False

Question 16

The amount extended to the Retained Earnings line in the Balance Sheet column of the work sheet is the amount to be reflected for Retained Earnings on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

A work sheet is useful for all except which of the following?

Accepted Answer

A)  Recording transactions from source documents 
B)  Recording closing entries 
C)  Recording adjusting entries 
D)  Preparing financial statements 
A)  Recording transactions from source documents 
B)  Recording closing entries 
C)  Recording adjusting entries 
D)  Preparing financial statements

Question 18

Typically,formal adjusting entries

Accepted Answer

A)  are prepared prior to completion of the work sheet. 
B)  are prepared at the same time as closing entries. 
C)  need not be prepared if a work sheet has been completed. 
D)  are entered directly into the ledger. 
A)  are prepared prior to completion of the work sheet. 
B)  are prepared at the same time as closing entries. 
C)  need not be prepared if a work sheet has been completed. 
D)  are entered directly into the ledger.

Question 19

Prepare closing entries for December from the following Income Statement columns of the work sheet of Custom Cleaning Service,Inc.,assuming that a $500 dividend was paid during the period (omit explanations).
  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text {Income Statement } $
$\begin{array}{|l|r|r|}
\hline&\text {  Debit }& \text { Credit }\ 
\hline \text { Cleaning Revenue } & & 2,600 \
\hline \text { Wages Expense } & 1,200 & \
\hline \text { Rent Expense } & 400 & \
\hline \text { Supplies Expense } & 300 & \
\hline \text { Income Taxes Expense } & 40 & \
\hline & 1,940 & 2,600 \
 \text { Net Income } & 660 & \
\hline & 2,600 & 2,600 \
\hline 
\end{array}$

Accepted Answer

The answer of Prepare closing entries for December from the...

Question 20

Match between columns
                        Premises:  Additional paid-in capital
 Cost of Goods Sold
 Customer Advances
 Land
 Temporary Investments
 Mortgage Payable (due in ten years)
 Common Stock
 Goodwill
 Notes Payable (due in ten months)
 Special Fund for Purchase of a Building

Accepted Answer

The Answer of Current assets and Investments and Property, plant, is...

Exam 3: Supplement - Closing Entries and the Work Sheet

In preparing adjustments on the work sheet,which of the following accounts most likely would be added to the Account Name column?

The total assets and the total liabilities and stockholders' equity on the balance sheet are the same as the totals of the Balance Sheet columns on the work sheet.

The balances of the Accumulated Depreciation accounts will appear on the credit side of the work sheet's Balance Sheet columns.

Which work sheet columns should contain "key letters"?

A work sheet is more useful for a small company than for a large one.

Which of the following accounts most likely would have an amount contained in the Income Statement columns of a work sheet?

Which of the following accounts probably would have a smaller balance in the Adjusted Trial Balance columns of a work sheet than in the Trial Balance columns?

In preparing closing entries,which of the following columns of the work sheet are the most helpful?

Which of the following accounts most likely would have an amount contained in every set of columns but the Balance Sheet columns of a work sheet?

In preparing adjustments on the work sheet,which of the following accounts could not be added to the Account Name column?

Closing entries may be prepared by referring solely to the Income Statement columns of the work sheet.

The Adjusted Trial Balance columns of the work sheet are prepared by combining the Trial Balance and Adjustments columns of the work sheet.

The amount extended to the Retained Earnings line in the Balance Sheet column of the work sheet is the amount to be reflected for Retained Earnings on the balance sheet.

A work sheet is useful for all except which of the following?

Typically,formal adjusting entries

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

The Changing Business Environment - a Managers Perspective

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions,incltarget Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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