Question 1

Trial balances are prepared primarily to ensure that no entries have been omitted.

Accepted Answer

A) True 
 B)False

Question 2

Below are the adjusted accounts of Whang Realtors for the month ended May 31, 20xx, listed in alphabetical order:
   In the journal provided, prepare Whang's closing entries. Omit explanations

Accepted Answer

The answer of Below are the adjusted accounts of Whang...

Question 3

Prepare closing entries for December without explanation from the following Income Statement columns of the work sheet of Custom Cleaning Service, assuming that a $500 withdrawal was made during the period.

Accepted Answer

The answer of Prepare closing entries for December without explanation...

Question 4

The post-closing trial balance differs from the adjusted trial balance in that it does not

Accepted Answer

A)  take into account closing entries. 
B)  take into account adjusting entries. 
C)  include income statement accounts. 
D)  include balance sheet accounts. 
A)  take into account closing entries. 
B)  take into account adjusting entries. 
C)  include income statement accounts. 
D)  include balance sheet accounts.

Question 5

The preparation of adjusting entries

Accepted Answer

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

Emil Belson, a house painter, has entered into a $1,200 contract to do a paint job that will begin in 20x1 and end in 20x2. Assuming a calendar-year accounting period, prepare Emil's entries in the following journal, using the dates and explanations provided.

Accepted Answer

The answer of Emil Belson, a house painter, has entered...

Question 8

Which of the following accounts could appear in an adjusting entry, closing entry, and reversing entry?

Accepted Answer

A)  Accumulated Depreciation-Buildings 
B)  Interest Income 
C)  Salaries Payable 
D)  Depreciation Expense-Buildings 
A)  Accumulated Depreciation-Buildings 
B)  Interest Income 
C)  Salaries Payable 
D)  Depreciation Expense-Buildings

Question 9

The Income Summary account appears in the income statement.

Accepted Answer

A) True 
 B)False

Question 10

When a company has earned a net income, the net income amount is entered on the work sheet on the

Accepted Answer

A)  credit side of both the Income Statement and the Balance Sheet columns. 
B)  credit side of the Income Statement columns and the debit side of the Balance Sheet columns. 
C)  debit side of the Income Statement columns and the credit side of the Balance Sheet columns. 
D)  debit side of both the Income Statement and the Balance Sheet columns. 
A)  credit side of both the Income Statement and the Balance Sheet columns. 
B)  credit side of the Income Statement columns and the debit side of the Balance Sheet columns. 
C)  debit side of the Income Statement columns and the credit side of the Balance Sheet columns. 
D)  debit side of both the Income Statement and the Balance Sheet columns.

Question 11

The owner's Capital, Withdrawals, and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:   The Bill Harmon, Capital balance on 1/1 was

Accepted Answer

A)  $300. 
B)  $800. 
C)  $700. 
D)  $1,500. 
A)  $300. 
B)  $800. 
C)  $700. 
D)  $1,500.

Question 12

A reversing entry would never involve which of the following accounts?

Accepted Answer

A)  Interest Expense 
B)  Wages Payable 
C)  Cash 
D)  Interest Income 
A)  Interest Expense 
B)  Wages Payable 
C)  Cash 
D)  Interest Income

Question 13

The work sheet is published in the annual report along with the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

The owner's Capital, Withdrawals, and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:   The Fran Laurel, Capital balance on 1/1 was

Accepted Answer

A)  $2,000. 
B)  $1,800. 
C)  $2,400. 
D)  $2,200. 
A)  $2,000. 
B)  $1,800. 
C)  $2,400. 
D)  $2,200.

Question 15

The amount of owner's Capital for the balance sheet is usually obtained from the

Accepted Answer

A)  statement of owner's equity. 
B)  Adjusted Trial Balance columns of the work sheet. 
C)  Trial Balance columns of the work sheet. 
D)  Balance Sheet columns of the work sheet. 
A)  statement of owner's equity. 
B)  Adjusted Trial Balance columns of the work sheet. 
C)  Trial Balance columns of the work sheet. 
D)  Balance Sheet columns of the work sheet.

Question 16

During the closing process, expenses are transferred to the credit side of the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 17

The normal account balances for owner's Capital and Withdrawals are

Accepted Answer

A)  credit and debit, respectively. 
B)  debits. 
C)  credits. 
D)  debit and credit, respectively. 
A)  credit and debit, respectively. 
B)  debits. 
C)  credits. 
D)  debit and credit, respectively.

Question 18

On the work sheet, under what circumstances will the last two columns be in balance after the initial footing?

Accepted Answer

A)  Under all circumstances, assuming no arithmetical errors have been made 
B)  When net income is zero 
C)  When no adjustments have been entered on the work sheet 
D)  Under no circumstances 
A)  Under all circumstances, assuming no arithmetical errors have been made 
B)  When net income is zero 
C)  When no adjustments have been entered on the work sheet 
D)  Under no circumstances

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following accounts is not closed?

Accepted Answer

A)  Income Summary 
B)  Withdrawals 
C)  Owner's Capital 
D)  Interest Income 
A)  Income Summary 
B)  Withdrawals 
C)  Owner's Capital 
D)  Interest Income

Exam 4: Completing the Accounting Cycle

Trial balances are prepared primarily to ensure that no entries have been omitted.

Below are the adjusted accounts of Whang Realtors for the month ended May 31, 20xx, listed in alphabetical order: In the journal provided, prepare Whang's closing entries. Omit explanations

Prepare closing entries for December without explanation from the following Income Statement columns of the work sheet of Custom Cleaning Service, assuming that a $500 withdrawal was made during the period.

The post-closing trial balance differs from the adjusted trial balance in that it does not

The preparation of adjusting entries

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

Emil Belson, a house painter, has entered into a $1,200 contract to do a paint job that will begin in 20x1 and end in 20x2. Assuming a calendar-year accounting period, prepare Emil's entries in the following journal, using the dates and explanations provided.

Which of the following accounts could appear in an adjusting entry, closing entry, and reversing entry?

The Income Summary account appears in the income statement.

When a company has earned a net income, the net income amount is entered on the work sheet on the

The owner's Capital, Withdrawals, and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The Bill Harmon, Capital balance on 1/1 was

A reversing entry would never involve which of the following accounts?

The work sheet is published in the annual report along with the financial statements.

The owner's Capital, Withdrawals, and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The Fran Laurel, Capital balance on 1/1 was

The amount of owner's Capital for the balance sheet is usually obtained from the

During the closing process, expenses are transferred to the credit side of the Income Summary account.

The normal account balances for owner's Capital and Withdrawals are

On the work sheet, under what circumstances will the last two columns be in balance after the initial footing?

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

Which of the following accounts is not closed?

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Partnerships

The Changing Business Environment-A Managers Pers

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems Process Costing

Activity-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

Filters