Question 1

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 A

Question 2

Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question.
$\begin{array} { | l | r | r | } 
\hline & { \text { Income Statement } } \
\hline & \text { Debit } & \text { Credit } \
\hline \text { Laundry Revenue } & & 2,500 \
\hline \text { Wages Expense } & 750 & \
\hline \text { Rent Expense } & 500 & \
\hline \text { Supplies Expense } & 300 & \
\hline \text { Insurance Expense } & 200 & \
\hline \text { Income Taxes Expense } & 50 & \
\hline & 1,800 & 2,500 \
\text { Net Income } & 700 & \
\hline & 2,500 & 2,500 \
\hline
\end{array}$
The entry to close Income Summary includes a

Accepted Answer

A) $\begin{array}{cc}
\text { Income Summary } & 2,500 \
\text { Retained Earnings } & 2,500
\end{array}$ 
B) Common Stock$\quad$$\quad$700
Income Summary$\quad$$\quad$700 
C) $\begin{array} { c c } 
\text { Income Summary } & 700 \
\text { Retained Earnings } & 700
\end{array}$ 
D) Income Summary$\quad$$\quad$700
Common Stock$\quad$$\quad$700 
A) $\begin{array}{cc}
\text { Income Summary } & 2,500 \
\text { Retained Earnings } & 2,500
\end{array}$ 
B) Common Stock$\quad$$\quad$700
Income Summary$\quad$$\quad$700 
C) $\begin{array} { c c } 
\text { Income Summary } & 700 \
\text { Retained Earnings } & 700
\end{array}$ 
D) Income Summary$\quad$$\quad$700
Common Stock$\quad$$\quad$700 C

Question 3

In a manual system which uses a work sheet,the preparation of adjusting entries

Accepted Answer

A)  typically precedes the preparation of the financial statements. 
B)  typically precedes preparation of the work sheet. 
C)  is easy because they are simply copied from the work sheet. 
D)  is difficult, and therefore they must first be entered into the general journal in pencil. 
A)  typically precedes the preparation of the financial statements. 
B)  typically precedes preparation of the work sheet. 
C)  is easy because they are simply copied from the work sheet. 
D)  is difficult, and therefore they must first be entered into the general journal in pencil. C

Question 4

The process of crossfooting requires vertical addition and subtraction.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the most useful aid to the accountant in preparing closing entries?

Accepted Answer

A)  Ledger 
B)  Work sheet 
C)  Journal 
D)  Financial statements 
A)  Ledger 
B)  Work sheet 
C)  Journal 
D)  Financial statements

Question 6

The work sheet should be prepared after the formal financial statements have been prepared.

Accepted Answer

A) True 
 B)False

Question 7

Which account that does not appear on the balance sheet has an amount in the Balance Sheet columns of a work sheet?

Accepted Answer

A)  Dividends 
B)  Depreciation Expense 
C)  Retained Earnings 
D)  Accumulated Depreciation-Equipment 
A)  Dividends 
B)  Depreciation Expense 
C)  Retained Earnings 
D)  Accumulated Depreciation-Equipment

Question 8

Which of the following accounts will have an amount in the Adjustments columns of the work sheet but probably not in the Trial Balance columns?

Accepted Answer

A)  Common Stock 
B)  Utilities Expense 
C)  Depreciation Expense-Machinery 
D)  Revenue from Services 
A)  Common Stock 
B)  Utilities Expense 
C)  Depreciation Expense-Machinery 
D)  Revenue from Services

Question 9

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 10

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 11

Match between columns
                        Premises:  Depreciation Expense (for delivery truck)
 Dividend Income
 Cash
 Interest Income
 Prepaid Rent
 Rent Expense (for main office)
 Advertising Expense
 Personnel Expense
 Unearned Revenue
 Sales Discounts

Accepted Answer

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

Question 12

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 13

Presented below are the Retained Earnings,Dividends,and Income Summary accounts for Anika's Pet Grooming Boutique,Inc.,for the year ended December 31,2010.Closing entries have been entered and posted.Prepare a statement of retained earnings.

Accepted Answer

None

Question 14

An amount for Retained Earnings would not appear in which of the following work sheet columns?

Accepted Answer

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

Question 15

The work sheet is prepared

Accepted Answer

A)  after the formal closing entries have been entered into the journal. 
B)  before the preparation of a formal trial balance. 
C)  after the formal adjusting entries have been entered into the journal. 
D)  before the preparation of formal financial statements. 
A)  after the formal closing entries have been entered into the journal. 
B)  before the preparation of a formal trial balance. 
C)  after the formal adjusting entries have been entered into the journal. 
D)  before the preparation of formal financial statements.

Question 16

The amount of Retained Earnings for the balance sheet is obtained from the

Accepted Answer

A)  statement of retained earnings. 
B)  Adjusted Trial Balance columns of the work sheet. 
C)  Balance Sheet columns of the work sheet. 
D)  Trial Balance columns of the work sheet. 
A)  statement of retained earnings. 
B)  Adjusted Trial Balance columns of the work sheet. 
C)  Balance Sheet columns of the work sheet. 
D)  Trial Balance columns of the work sheet.

Question 17

Use this information from the Income Statement columns of the work sheet of Corner Laundry Service to answer the following question.
$\begin{array} { | l | r | r | } 
\hline & { \text { Income Statement } } \
\hline & \text { Debit } & \text { Credit } \
\hline \text { Laundry Revenue } & & 2,500 \
\hline \text { Wages Expense } & 750 & \
\hline \text { Rent Expense } & 500 & \
\hline \text { Supplies Expense } & 300 & \
\hline \text { Insurance Expense } & 200 & \
\hline \text { Income Taxes Expense } & 50 & \
\hline & 1,800 & 2,500 \
\text { Net Income } & 700 & \
\hline & 2,500 & 2,500 \
\hline
\end{array}$ 
The entry to close the Laundry Revenue account includes a

Accepted Answer

A) $\begin{array} { c c c } 
\text { Laundry Revenue } & 2,500 \
\text { Income Summary } & & 2,500
\end{array}$ 
B) Income Summary $\quad 2,500$
Laundry Revenue$\quad$$\quad$2,500 
C) Retained Earnings$\quad$$\quad$2,500
Income Summary$\quad$$\quad$2,500 
D) Retained Earnings$\quad$$\quad$2,500
Laundry Revenue$\quad$$\quad$2,500 
A) $\begin{array} { c c c } 
\text { Laundry Revenue } & 2,500 \
\text { Income Summary } & & 2,500
\end{array}$ 
B) Income Summary $\quad 2,500$
Laundry Revenue$\quad$$\quad$2,500 
C) Retained Earnings$\quad$$\quad$2,500
Income Summary$\quad$$\quad$2,500 
D) Retained Earnings$\quad$$\quad$2,500
Laundry Revenue$\quad$$\quad$2,500

Question 18

The Trial Balance and Adjusted Trial Balance columns of Owen Cleaning Corporation's work sheet are shown below.(The Adjustments columns have been omitted.)Using this information,prepare the post-closing trial balance for Owen Cleaning Corporation as of June 30,2010.

Accepted Answer

None

Question 19

An important use of the work sheet is as an aid in the preparation of financial statements.

Accepted Answer

A) True 
 B)False

Question 20

The work sheet is prepared after the formal adjusting and closing entries.

Accepted Answer

A) True 
 B)False

Exam 3: Supplement - Closing Entries and the Work Sheet

Which work sheet columns should contain "key letters"?

In a manual system which uses a work sheet,the preparation of adjusting entries

The process of crossfooting requires vertical addition and subtraction.

Which of the following is the most useful aid to the accountant in preparing closing entries?

The work sheet should be prepared after the formal financial statements have been prepared.

Which account that does not appear on the balance sheet has an amount in the Balance Sheet columns of a work sheet?

Which of the following accounts will have an amount in the Adjustments columns of the work sheet but probably not in the Trial Balance columns?

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

Typically,formal adjusting entries

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.

Presented below are the Retained Earnings,Dividends,and Income Summary accounts for Anika's Pet Grooming Boutique,Inc.,for the year ended December 31,2010.Closing entries have been entered and posted.Prepare a statement of retained earnings.

An amount for Retained Earnings would not appear in which of the following work sheet columns?

The work sheet is prepared

The amount of Retained Earnings for the balance sheet is obtained from the

The Trial Balance and Adjusted Trial Balance columns of Owen Cleaning Corporation's work sheet are shown below.(The Adjustments columns have been omitted.)Using this information,prepare the post-closing trial balance for Owen Cleaning Corporation as of June 30,2010.

An important use of the work sheet is as an aid in the preparation of financial statements.

The work sheet is prepared after the formal adjusting and closing 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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