Question 1

Under which of the following categories would Accounts payable appear?

Accepted Answer

A)  Current liabilities 
B)  Non-current assets 
C)  Non-current liabilities 
D)  Current assets 
A)  Current liabilities 
B)  Non-current assets 
C)  Non-current liabilities 
D)  Current assets

Question 2

Which of the following is true of a completed worksheet?

Accepted Answer

A)  The total debits equal the total credits in each column. 
B)  The total debits in the income statement column equal the total credits in the balance sheet column. 
C)  The total debits in the income statement column equal the total debits in the balance sheet column. 
D)  The total debits in the trial balance column equal the total debits in the adjusted trial balance column. 
A)  The total debits equal the total credits in each column. 
B)  The total debits in the income statement column equal the total credits in the balance sheet column. 
C)  The total debits in the income statement column equal the total debits in the balance sheet column. 
D)  The total debits in the trial balance column equal the total debits in the adjusted trial balance column.

Question 3

The post-closing trial balance lists the accounts from the general ledger in:

Accepted Answer

A)  numerical order. 
B)  alphabetical order. 
C)  category order, beginning with assets and ending with owners' equity. 
D)  category order, beginning with assets and ending with expenses. 
A)  numerical order. 
B)  alphabetical order. 
C)  category order, beginning with assets and ending with owners' equity. 
D)  category order, beginning with assets and ending with expenses.

Question 4

What is the result if the amount of profit for the year is less than the amount of the drawings?

Accepted Answer

A)  The amount in the Cash account increases. 
B)  The amount in the Cash account decreases. 
C)  The Capital account decreases. 
D)  The Capital account increases. 
A)  The amount in the Cash account increases. 
B)  The amount in the Cash account decreases. 
C)  The Capital account decreases. 
D)  The Capital account increases.

Question 5

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

Accepted Answer

A)  Interest payable 
B)  Service revenue 
C)  Utilities expense 
D)  Interest expense 
A)  Interest payable 
B)  Service revenue 
C)  Utilities expense 
D)  Interest expense

Question 6

Rose Company earned revenues of $18,000 and incurred expenses of $4000.The drawings of Mary Rose,the owner,were $2500.What is the balance in the Income summary account after closing profit or loss to the Rose,capital account?

Accepted Answer

A)  Credit balance of $4000 
B)  Credit balance of $14,000 
C)  Debit balance of $18,000 
D)  Balance of $0 
A)  Credit balance of $4000 
B)  Credit balance of $14,000 
C)  Debit balance of $18,000 
D)  Balance of $0

Question 7

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

Accepted Answer

A)  Salaries payable 
B)  Insurance expense 
C)  Equipment 
D)  Rent revenue 
A)  Salaries payable 
B)  Insurance expense 
C)  Equipment 
D)  Rent revenue

Question 8

Which of the following entries will be necessary to close the insurance expense account at the end of the year?

Accepted Answer

A)  Debit Capital and credit Insurance expense 
B)  Debit Insurance expense and credit Income summary 
C)  Debit Insurance expense and credit Capital 
D)  Debit Income summary and credit Insurance expense 
A)  Debit Capital and credit Insurance expense 
B)  Debit Insurance expense and credit Income summary 
C)  Debit Insurance expense and credit Capital 
D)  Debit Income summary and credit Insurance expense

Question 9

Which of the following do NOT show up on a post-closing trial balance?

Accepted Answer

A)  Capital and liabilities 
B)  Assets and liabilities 
C)  Capital and assets 
D)  Revenues and expenses 
A)  Capital and liabilities 
B)  Assets and liabilities 
C)  Capital and assets 
D)  Revenues and expenses

Question 10

Below is a list of various balance sheet accounts and their balances.
$$\begin{array} { | l | l | l | } 
\hline & \text { Debit } & \text { Credit } \
\hline \text { Building } & \$ 130,000 & \
\hline \text { Cash } & 7000 & \
\hline \text { Supplies } & 1000 & \
\hline \text { Furniture } & 6000 & \
\hline \text { Prepaid insurance } & 4700 & \
\hline \text { Accumulated depreciation - furniture } & & \$ 950 \
\hline \text { Land } & 34,000 & \
\hline \text { Accumulated depreciation - building } & & 4700 \
\hline \text { Accounts receivable } & 950 & \
\hline
\end{array}$$
What are the total non-current assets that would be shown on the balance sheet?

Accepted Answer

A)  $164,000 
B)  $130,000 
C)  $164,350 
D)  $170,000 
A)  $164,000 
B)  $130,000 
C)  $164,350 
D)  $170,000

Question 11

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

Accepted Answer

A)  Prepaid insurance 
B)  Depreciation expense 
C)  Service revenue 
D)  Unearned service revenue 
A)  Prepaid insurance 
B)  Depreciation expense 
C)  Service revenue 
D)  Unearned service revenue

Question 12

Prepaid rent is usually a non-current asset.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would be considered a non-current asset?

Accepted Answer

A)  Land 
B)  Inventory 
C)  Prepaid insurance 
D)  Accounts receivable 
A)  Land 
B)  Inventory 
C)  Prepaid insurance 
D)  Accounts receivable

Question 14

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accepted Answer

A) True 
 B)False

Question 15

Rose Company earned revenues of $17,000 and incurred expenses of $4500.The drawings of Mary Rose,the owner,were $1000.What is the balance in the Income summary account prior to closing profit or loss to the Rose,capital account?

Accepted Answer

A)  Debit balance of $17,000 
B)  Credit balance of $12,500 
C)  Credit balance of $17,000 
D)  Debit balance of $12,500 
A)  Debit balance of $17,000 
B)  Credit balance of $12,500 
C)  Credit balance of $17,000 
D)  Debit balance of $12,500

Question 16

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

Accepted Answer

A)  Prepaid insurance 
B)  Accumulated depreciation 
C)  Service revenue 
D)  Unearned service revenue 
A)  Prepaid insurance 
B)  Accumulated depreciation 
C)  Service revenue 
D)  Unearned service revenue

Question 17

Which of the following accounts does NOT close at the end of the period?

Accepted Answer

A)  Depreciation expense 
B)  Drawings 
C)  Accumulated depreciation 
D)  Sales revenues 
A)  Depreciation expense 
B)  Drawings 
C)  Accumulated depreciation 
D)  Sales revenues

Question 18

Permanent accounts are NOT closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 19

Buildings,land and equipment would be classified as:

Accepted Answer

A)  non-current liabilities. 
B)  non-current assets. 
C)  current assets. 
D)  current liabilities. 
A)  non-current liabilities. 
B)  non-current assets. 
C)  current assets. 
D)  current liabilities.

Question 20

Which account has a balance equal to profit immediately before it is closed?

Accepted Answer

A)  The Capital account 
B)  The Income summary account 
C)  The Drawings account 
D)  The Profit account 
A)  The Capital account 
B)  The Income summary account 
C)  The Drawings account 
D)  The Profit account

Exam 4: Completing the Accounting Cycle

Under which of the following categories would Accounts payable appear?

Which of the following is true of a completed worksheet?

The post-closing trial balance lists the accounts from the general ledger in:

What is the result if the amount of profit for the year is less than the amount of the drawings?

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

Rose Company earned revenues of $18,000 and incurred expenses of $4000.The drawings of Mary Rose,the owner,were $2500.What is the balance in the Income summary account after closing profit or loss to the Rose,capital account?

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

Which of the following entries will be necessary to close the insurance expense account at the end of the year?

Which of the following do NOT show up on a post-closing trial balance?

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

Prepaid rent is usually a non-current asset.

Which of the following would be considered a non-current asset?

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Rose Company earned revenues of $17,000 and incurred expenses of $4500.The drawings of Mary Rose,the owner,were $1000.What is the balance in the Income summary account prior to closing profit or loss to the Rose,capital account?

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

Which of the following accounts does NOT close at the end of the period?

Permanent accounts are NOT closed at the end of the period.

Buildings,land and equipment would be classified as:

Which account has a balance equal to profit immediately before it is closed?

The Role of Accounting in Decision Making

Recording Business Transactions

The Adjusting Process

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities,debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Introduction to Managerial Accounting and the Master Budget

Job Costing

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

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