Question 1

Statements that show the effects of proposed transactions as if the transactions had already occurred are called:

Accepted Answer

A) Pro forma statements 
B) Professional statements 
C) Simplified statements 
D) Temporary statements 
E) Interim statements 
A) Pro forma statements 
B) Professional statements 
C) Simplified statements 
D) Temporary statements 
E) Interim statements

Question 2

The recurring steps performed each accounting period,starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance,are referred to as the:

Accepted Answer

A) Accounting period 
B) Operating cycle 
C) Accounting cycle 
D) Closing cycle 
E) Natural business year 
A) Accounting period 
B) Operating cycle 
C) Accounting cycle 
D) Closing cycle 
E) Natural business year

Question 3

Discuss how accrual accounting enhances the usefulness of financial statements.

Accepted Answer

The accrual accounting method recognizes

Question 4

Adjusting entries are used to record the effects of internal economic (financial)transactions and events.

Accepted Answer

A) True 
 B)False

Question 5

Adjusting entries result in a better matching of revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following accounts would not be on the post closing trial balance?

Accepted Answer

A) Accounts Payable 
B) Accounts Receivable 
C) Common Stock 
D) Dividends 
E) Retained Earnings 
A) Accounts Payable 
B) Accounts Receivable 
C) Common Stock 
D) Dividends 
E) Retained Earnings

Question 7

On April 30,2011,a three-year insurance policy was purchased for $18,000 with coverage to begin immediately.What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31,2011?

Accepted Answer

A) $500 
B) $4,000 
C) $6,000 
D) $14,000 
E) $18,000 
A) $500 
B) $4,000 
C) $6,000 
D) $14,000 
E) $18,000

Question 8

The current portion of long-term debt is classified with the _________________________.

Accepted Answer

The answer of The current portion of long-term debt is...

Question 9

How is the current ratio calculated? How is it used to evaluate a company?

Accepted Answer

The current ratio is current assets divi

Question 10

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

Accepted Answer

A) Entering an asset amount in the Income Statement Debit column 
B) Entering a liability amount in the Income Statement Credit column 
C) Entering an expense amount in the Balance Sheet Debit column 
D) Entering a revenue amount in the Balance Sheet Debit column 
E) Entering a liability amount in the Balance Sheet Credit column 
A) Entering an asset amount in the Income Statement Debit column 
B) Entering a liability amount in the Income Statement Credit column 
C) Entering an expense amount in the Balance Sheet Debit column 
D) Entering a revenue amount in the Balance Sheet Debit column 
E) Entering a liability amount in the Balance Sheet Credit column

Question 11

Interim statements report a company's business activities for a 1-year period.

Accepted Answer

A) True 
 B)False

Question 12

Adjusting entries are normally entered in the general journal prior to being posted to the work sheet.

Accepted Answer

A) True 
 B)False

Question 13

What is the purpose of a post-closing trial balance?

Accepted Answer

A post-closing trial balance is a list o

Question 14

An expense account is normally closed by debiting Income Summary and crediting the expense account.

Accepted Answer

A) True 
 B)False

Question 15

Kader Co.paid a total of $35,000 in dividends during the current year.The entry needed to close the dividends account is:

Accepted Answer

A) Debit Income Summary and credit Cash for $35,000 
B) Debit Dividends and credit Cash for $35,000 
C) Debit Income Summary and credit Dividends for $35,000 
D) Debit Retained Earnings and credit Dividends for $35,000 
E) Debit Dividends and credit Retained earnings for $35,000 
A) Debit Income Summary and credit Cash for $35,000 
B) Debit Dividends and credit Cash for $35,000 
C) Debit Income Summary and credit Dividends for $35,000 
D) Debit Retained Earnings and credit Dividends for $35,000 
E) Debit Dividends and credit Retained earnings for $35,000

Question 16

On December 31,the balance in the Prepaid Advertising account was $176,000,which is the remaining balance of a twelve-month advertising campaign purchased on August 31 in the current year.Assuming the cost is spread equally over each month how much did this advertising campaign cost in total?

Accepted Answer

A) $286,000 
B) $176,000 
C) $264,000 
D) $154,000 
E) $22,000 
A) $286,000 
B) $176,000 
C) $264,000 
D) $154,000 
E) $22,000

Question 17

The _____________________ form of balance sheet lists the asset accounts on the left side and the liabilities and equity accounts on the right side.The ______________________ form of balance sheet lists items vertically with assets followed by liabilities then equity accounts.

Accepted Answer

The answer of The _____________________ form of balance sheet lists...

Question 18

A company's post-closing trial balance has a debit total of $475,000 and a credit total of $457,000.This indicates that __________________________.

Accepted Answer

An error w

Question 19

Reebok's net income was $180,000; its total assets were $1,050,000; and its net sales were $3,500,000.Calculate the company's profit margin ratio.

Accepted Answer

$180,000/$

Question 20

The Income Summary account is closed to the retained earnings account.

Accepted Answer

A) True 
 B)False

Statements that show the effects of proposed transactions as if the transactions had already occurred are called:

The recurring steps performed each accounting period,starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance,are referred to as the:

Discuss how accrual accounting enhances the usefulness of financial statements.

Adjusting entries are used to record the effects of internal economic (financial)transactions and events.

Adjusting entries result in a better matching of revenues and expenses.

Which of the following accounts would not be on the post closing trial balance?

On April 30,2011,a three-year insurance policy was purchased for $18,000 with coverage to begin immediately.What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31,2011?

The current portion of long-term debt is classified with the _________________________.

How is the current ratio calculated? How is it used to evaluate a company?

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

Interim statements report a company's business activities for a 1-year period.

Adjusting entries are normally entered in the general journal prior to being posted to the work sheet.

What is the purpose of a post-closing trial balance?

An expense account is normally closed by debiting Income Summary and crediting the expense account.

Kader Co.paid a total of $35,000 in dividends during the current year.The entry needed to close the dividends account is:

On December 31,the balance in the Prepaid Advertising account was $176,000,which is the remaining balance of a twelve-month advertising campaign purchased on August 31 in the current year.Assuming the cost is spread equally over each month how much did this advertising campaign cost in total?

The _ form of balance sheet lists the asset accounts on the left side and the liabilities and equity accounts on the right side.The __ form of balance sheet lists items vertically with assets followed by liabilities then equity accounts.

A company's post-closing trial balance has a debit total of $475,000 and a credit total of $457,000.This indicates that __________________________.

Reebok's net income was $180,000; its total assets were $1,050,000; and its net sales were $3,500,000.Calculate the company's profit margin ratio.

The Income Summary account is closed to the retained earnings account.

Introducing Accounting in Business

Analyzing and Recording Transactions

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Exam 3: Adjusting Accounts and Preparing Financial Statements

Statements that show the effects of proposed transactions as if the transactions had already occurred are called:

The recurring steps performed each accounting period,starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance,are referred to as the:

Discuss how accrual accounting enhances the usefulness of financial statements.

Adjusting entries are used to record the effects of internal economic (financial)transactions and events.

Adjusting entries result in a better matching of revenues and expenses.

Which of the following accounts would not be on the post closing trial balance?

On April 30,2011,a three-year insurance policy was purchased for $18,000 with coverage to begin immediately.What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31,2011?

The current portion of long-term debt is classified with the _________________________.

How is the current ratio calculated? How is it used to evaluate a company?

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

Interim statements report a company's business activities for a 1-year period.

Adjusting entries are normally entered in the general journal prior to being posted to the work sheet.

What is the purpose of a post-closing trial balance?

An expense account is normally closed by debiting Income Summary and crediting the expense account.

Kader Co.paid a total of $35,000 in dividends during the current year.The entry needed to close the dividends account is:

On December 31,the balance in the Prepaid Advertising account was $176,000,which is the remaining balance of a twelve-month advertising campaign purchased on August 31 in the current year.Assuming the cost is spread equally over each month how much did this advertising campaign cost in total?

The _____________________ form of balance sheet lists the asset accounts on the left side and the liabilities and equity accounts on the right side.The ______________________ form of balance sheet lists items vertically with assets followed by liabilities then equity accounts.

A company's post-closing trial balance has a debit total of $475,000 and a credit total of $457,000.This indicates that __________________________.

Reebok's net income was $180,000; its total assets were $1,050,000; and its net sales were $3,500,000.Calculate the company's profit margin ratio.

The Income Summary account is closed to the retained earnings account.

Introducing Accounting in Business

Analyzing and Recording Transactions

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

The _ form of balance sheet lists the asset accounts on the left side and the liabilities and equity accounts on the right side.The __ form of balance sheet lists items vertically with assets followed by liabilities then equity accounts.