Question 1

Reversing entries are made to correct errors in the accounts.

Accepted Answer

A) True 
 B)False

Question 2

From the following items in the Income Statement columns of the work sheet of Ochoa Company at December 31, 20xx, prepare the closing entries without explanations, assuming that a $75 withdrawal was made by the owner during the period.

Accepted Answer

The answer of From the following items in the Income...

Question 3

The balances of the Accumulated Depreciation accounts will appear on the credit side of the work sheet's Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 4

Using the following information and the trial balance accounts and balances in the work sheet provided, complete the work sheet.
a. Expired insurance totals $260.
b. Of the unearned revenue, all has been earned by the balance sheet date.
c. Estimated depreciation of equipment is $120.
d. Accrued wages equal $400.
e. Unused supplies on hand are $90.

Accepted Answer

The answer of Using the following information and the trial...

Question 5

Reversing entries are never required.

Accepted Answer

A) True 
 B)False

Question 6

Use the following adjusted trial balance to answer the question(s) below.   Which account bypasses the Income Summary account in the closing process?

Accepted Answer

A)  Leroy Allen, Withdrawals 
B)  Ship Rentals 
C)  Depreciation Expense-Dock 
D)  Wages Expense 
A)  Leroy Allen, Withdrawals 
B)  Ship Rentals 
C)  Depreciation Expense-Dock 
D)  Wages Expense

Question 7

Below are the adjusted accounts of Wheeler Realtors for the month ended May 31, 20xx, listed in alphabetical order:
   Prepare a post-closing trial balance.

Accepted Answer

@#IMG-DLM& *$6,000 + $3,350 ne

Question 8

Arrange the following activities in the usual order by placing the numbers 1 through 5 in the blanks.
_____
a. A work sheet is prepared.
_____
b. The transactions are posted to the ledger.
_____
c. The transactions are entered in the journal.
_____
d. Financial statements are prepared.
_____
e. The transactions are analyzed from the source documents.

Accepted Answer

a. 4 
b. 3

Question 9

Adjusting entries are all dated as of the first day of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 10

What two broad purposes do closing entries serve?

Accepted Answer

Closing entries zero out all nominal acc

Question 11

Why would a large company probably benefit more from a work sheet than a very small company?

Accepted Answer

A large company probably would need to p

Question 12

Jack Stephan, a house painter, has entered into a $2,400 contract to do a paint job that will begin in 20x1 and end in 20x2. Assuming a calendar-year accounting period, prepare Jack's entries in the following journal, using the dates and explanations provided.

Accepted Answer

The answer of Jack Stephan, a house painter, has entered...

Question 13

Which of the following accounts is a real account?

Accepted Answer

A)  Building 
B)  Depreciation Expense-Buildings 
C)  Interest Expense 
D)  Service Revenue 
A)  Building 
B)  Depreciation Expense-Buildings 
C)  Interest Expense 
D)  Service Revenue

Question 14

The entry to close the Withdrawals account is

Accepted Answer

A)  debit owner's Capital and credit Withdrawals. 
B)  debit Withdrawals and credit owner's Capital. 
C)  debit Income Summary and credit Withdrawals. 
D)  debit Withdrawals and credit Income Summary. 
A)  debit owner's Capital and credit Withdrawals. 
B)  debit Withdrawals and credit owner's Capital. 
C)  debit Income Summary and credit Withdrawals. 
D)  debit Withdrawals and credit Income Summary.

Question 15

Failure to prepare closing entries will produce a misstated

Accepted Answer

A)  total liabilities figure on the balance sheet. 
B)  total assets figure on the balance sheet. 
C)  owner's Capital account balance. 
D)  Income Summary account balance. 
A)  total liabilities figure on the balance sheet. 
B)  total assets figure on the balance sheet. 
C)  owner's Capital account balance. 
D)  Income Summary account balance.

Question 16

Which work sheet columns should contain "key letters"?

Accepted Answer

A)  Balance Sheet 
B)  Adjusted Trial Balance 
C)  Trial Balance 
D)  Adjustments 
A)  Balance Sheet 
B)  Adjusted Trial Balance 
C)  Trial Balance 
D)  Adjustments

Question 17

The Income Summary account will appear on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 18

In preparing adjustments to the work sheet, which of the following accounts could not be added to the Account Name column?

Accepted Answer

A)  Interest Receivable 
B)  Notes Payable 
C)  Depreciation Expense-Equipment 
D)  Interest Income 
A)  Interest Receivable 
B)  Notes Payable 
C)  Depreciation Expense-Equipment 
D)  Interest Income

Question 19

An important purpose of the work sheet is to

Accepted Answer

A)  accompany the financial statements in the company's annual report. 
B)  aid the accountant in the daily preparation of journal entries. 
C)  replace the journal when making adjusting and closing entries. 
D)  check the accuracy of adjusting entries before they are entered formally into the accounting records. 
A)  accompany the financial statements in the company's annual report. 
B)  aid the accountant in the daily preparation of journal entries. 
C)  replace the journal when making adjusting and closing entries. 
D)  check the accuracy of adjusting entries before they are entered formally into the accounting records.

Question 20

The post-closing trial balance contains

Accepted Answer

A)  neither real accounts nor nominal accounts. 
B)  nominal accounts only. 
C)  real accounts only. 
D)  both real accounts and nominal accounts. 
A)  neither real accounts nor nominal accounts. 
B)  nominal accounts only. 
C)  real accounts only. 
D)  both real accounts and nominal accounts.

Exam 4: Completing the Accounting Cycle

Reversing entries are made to correct errors in the accounts.

From the following items in the Income Statement columns of the work sheet of Ochoa Company at December 31, 20xx, prepare the closing entries without explanations, assuming that a $75 withdrawal was made by the owner during the period.

The balances of the Accumulated Depreciation accounts will appear on the credit side of the work sheet's Balance Sheet columns.

Reversing entries are never required.

Use the following adjusted trial balance to answer the question(s) below. Which account bypasses the Income Summary account in the closing process?

Below are the adjusted accounts of Wheeler Realtors for the month ended May 31, 20xx, listed in alphabetical order: Prepare a post-closing trial balance.

Adjusting entries are all dated as of the first day of the new accounting period.

What two broad purposes do closing entries serve?

Why would a large company probably benefit more from a work sheet than a very small company?

Jack Stephan, a house painter, has entered into a $2,400 contract to do a paint job that will begin in 20x1 and end in 20x2. Assuming a calendar-year accounting period, prepare Jack's entries in the following journal, using the dates and explanations provided.

Which of the following accounts is a real account?

The entry to close the Withdrawals account is

Failure to prepare closing entries will produce a misstated

Which work sheet columns should contain "key letters"?

The Income Summary account will appear on the post-closing trial balance.

In preparing adjustments to the work sheet, which of the following accounts could not be added to the Account Name column?

An important purpose of the work sheet is to

The post-closing trial balance contains

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

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