Question 1

There is really no benefit in preparing financial statements in any particular order.

Accepted Answer

A) True 
 B)False

Question 2

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520.What does this information mean to the accountant?

Accepted Answer

A)  net income of $21,720 
B)  net loss of $21,720 
C)  the accounts are out of balance,indicating an error has been made 
D)  the accounts have not been updated 
A)  net income of $21,720 
B)  net loss of $21,720 
C)  the accounts are out of balance,indicating an error has been made 
D)  the accounts have not been updated

Question 3

Once the adjusted trial balance is in balance,the flow of accounts will now go into the financial statements.

Accepted Answer

A) True 
 B)False

Question 4

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

Accepted Answer

A)  Consulting Revenue 
B)  Prepaid Insurance 
C)  Rent Expense 
D)  Fees Earned 
A)  Consulting Revenue 
B)  Prepaid Insurance 
C)  Rent Expense 
D)  Fees Earned

Question 5

Accumulated Depreciation is a permanent account.

Accepted Answer

A) True 
 B)False

Question 6

The first item appearing on the statement of retained earnings is

Accepted Answer

A)  net income 
B)  the ending balance of retained earnings 
C)  dividends 
D)  the beginning balance of retained earnings 
A)  net income 
B)  the ending balance of retained earnings 
C)  dividends 
D)  the beginning balance of retained earnings

Question 7

The end-of-period spreadsheet for the current year for Jamal Company shows Balance Sheet columns with a debit total of $630,430 and a credit total of $614,210.This is before the amount for net income or net loss has been included.In preparing the income statement from the end-of-period spreadsheet,what is the amount of net income or net loss?

Accepted Answer

Net income

Question 8

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31.
​
   Prepare the entry required to close the expense accounts at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings.Below is...

Question 9

Which of the statements below indicates that a company earned a net income for the period?

Accepted Answer

A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet. 
D)  Cash inflows exceed cash outflows. 
A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet. 
D)  Cash inflows exceed cash outflows.

Question 10

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 11

Closing entries

Accepted Answer

A)  need not be journalized if adjusting entries are prepared 
B)  need not be posted if the financial statements are prepared from the end-of-period spreadsheet 
C)  are not needed if adjusting entries are prepared 
D)  must be journalized and posted 
A)  need not be journalized if adjusting entries are prepared 
B)  need not be posted if the financial statements are prepared from the end-of-period spreadsheet 
C)  are not needed if adjusting entries are prepared 
D)  must be journalized and posted

Question 12

The entry to close expenses would be:

Accepted Answer

A)  Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000
Income Summary 105,000 
B)  Expenses 105,000
Income Summary 105,000 
C)  Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000
Dividends 105,000 
D)  Income Summary 105,000
Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000 
A)  Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000
Income Summary 105,000 
B)  Expenses 105,000
Income Summary 105,000 
C)  Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000
Dividends 105,000 
D)  Income Summary 105,000
Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000

Question 13

The income summary account is also known as the clearing account.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following account groups are nominal accounts?

Accepted Answer

A)  Cash,Dividends,Wages Payable 
B)  Prepaid Insurance,Equipment,Fees Earned 
C)  Common Stock,Dividends,Income Summary 
D)  Rent Revenue,Fees Earned,Miscellaneous Expense 
A)  Cash,Dividends,Wages Payable 
B)  Prepaid Insurance,Equipment,Fees Earned 
C)  Common Stock,Dividends,Income Summary 
D)  Rent Revenue,Fees Earned,Miscellaneous Expense

Question 15

The income statement is prepared from the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet.

Accepted Answer

A) True 
 B)False

Question 16

Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.

Accepted Answer

A) True 
 B)False

Question 17

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet,the totals of the debit and credit columns show debits of $37,686 and credits of $41,101.This indicates that

Accepted Answer

A)  neither net income or loss can be calculated because it is found on the income statement 
B)  the company has a net loss of $3,415 for the period 
C)  the company has a net income of $3,415 for the period 
D)  the amounts are out of balance and need to be corrected 
A)  neither net income or loss can be calculated because it is found on the income statement 
B)  the company has a net loss of $3,415 for the period 
C)  the company has a net income of $3,415 for the period 
D)  the amounts are out of balance and need to be corrected

Question 18

Which of the accounts below would be closed by posting a debit to the account?

Accepted Answer

A)  Unearned Revenue 
B)  Fees Earned 
C)  Dividends 
D)  Miscellaneous Expense 
A)  Unearned Revenue 
B)  Fees Earned 
C)  Dividends 
D)  Miscellaneous Expense

Question 19

The post-closing trial balance will generally have fewer accounts than the trial balance.

Accepted Answer

A) True 
 B)False

Question 20

​The income statement is prepared from

Accepted Answer

A)  ​the adjusted trial balance 
B)  ​the Income Statement columns of the end-of-period spreadsheet 
C)  ​either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet 
D)  ​both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheet 
A)  ​the adjusted trial balance 
B)  ​the Income Statement columns of the end-of-period spreadsheet 
C)  ​either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet 
D)  ​both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheet

Exam 4: Completing the Accounting Cycle

There is really no benefit in preparing financial statements in any particular order.

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520.What does this information mean to the accountant?

Once the adjusted trial balance is in balance,the flow of accounts will now go into the financial statements.

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

Accumulated Depreciation is a permanent account.

The first item appearing on the statement of retained earnings is

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. ​ Prepare the entry required to close the expense accounts at the end of the period.

Which of the statements below indicates that a company earned a net income for the period?

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Closing entries

The entry to close expenses would be:

The income summary account is also known as the clearing account.

Which of the following account groups are nominal accounts?

The income statement is prepared from the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet.

Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet,the totals of the debit and credit columns show debits of $37,686 and credits of $41,101.This indicates that

Which of the accounts below would be closed by posting a debit to the account?

The post-closing trial balance will generally have fewer accounts than the trial balance.

​The income statement is prepared from

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. Prepare the entry required to close the expense accounts at the end of the period.

The income statement is prepared from