Question 1

An amount for owner's Capital would not appear in which of the following work sheet columns?

Accepted Answer

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

Question 2

Why will the Income Summary account never appear on any financial statement?

Accepted Answer

The Income Summary account beg

Question 3

Which of the following adjustments most likely would be reversed?

Accepted Answer

A)  Adjustment to record depreciation expense 
B)  Adjustment to allocate prepaid insurance to the current period 
C)  Adjustment to determine supplies expense for the period 
D)  Adjustment to accrue salaries 
A)  Adjustment to record depreciation expense 
B)  Adjustment to allocate prepaid insurance to the current period 
C)  Adjustment to determine supplies expense for the period 
D)  Adjustment to accrue salaries

Question 4

Nominal account balances are reduced to zero by closing entries.

Accepted Answer

A) True 
 B)False

Question 5

In the accounting cycle, which of the following involves the measurement stage?

Accepted Answer

A)  Analyzing the business transactions from source documents 
B)  Posting journal entries to the ledger 
C)  Preparing the financial statements 
D)  Adjusting the accounts 
A)  Analyzing the business transactions from source documents 
B)  Posting journal entries to the ledger 
C)  Preparing the financial statements 
D)  Adjusting the accounts

Question 6

Typically, adjusting entries

Accepted Answer

A)  are entered directly into the ledger. 
B)  are prepared prior to completion of the work sheet. 
C)  need not be prepared if a work sheet has been completed. 
D)  are prepared at the same time as closing entries. 
A)  are entered directly into the ledger. 
B)  are prepared prior to completion of the work sheet. 
C)  need not be prepared if a work sheet has been completed. 
D)  are prepared at the same time as closing entries.

Question 7

Owner's Capital is closed by transferring the balance to Income Summary.

Accepted Answer

A) True 
 B)False

Question 8

Information from the Income Statement columns of the work sheet of Landry Laundry Service is provided below:   The entry to close the expense accounts is

Accepted Answer

The answer of Information from the Income Statement columns of...

Question 9

The Income Summary account is credited in the entry that closes

Accepted Answer

A)  the Withdrawals account. 
B)  expense accounts. 
C)  net income. 
D)  revenue accounts. 
A)  the Withdrawals account. 
B)  expense accounts. 
C)  net income. 
D)  revenue accounts.

Question 10

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

Accepted Answer

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

Question 11

Higley Repair pays wages of $8,000 every other Friday ($800 per weekday).
a. In the journal provided, prepare the following entries for the fiscal year ended May 31, 20xx (omit explanations):

b. What would the June 8 entry be if no reversing entry was made? Use the journal provided.

Accepted Answer

The answer of Higley Repair pays wages of $8,000 every...

Question 12

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 total amount of expenses for the period is

Accepted Answer

A)  $700. 
B)  $900. 
C)  $200. 
D)  $100. 
A)  $700. 
B)  $900. 
C)  $200. 
D)  $100.

Question 13

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)  Owner's Capital 
B)  Revenue from Services 
C)  Depreciation Expense-Machinery 
D)  Utilities Expense 
A)  Owner's Capital 
B)  Revenue from Services 
C)  Depreciation Expense-Machinery 
D)  Utilities Expense

Question 14

An expense account is closed with a debit to the expense account and a credit to Income Summary.

Accepted Answer

A) True 
 B)False

Question 15

The balances of all the accounts that appear on a balance sheet are the same on the adjusted trial balance as they are on a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 16

The owner's Capital, Withdrawals, and Income Summary accounts for Rick's Repair Shop for the accounting period are presented below in T account form after the recording and posting of closing entries.
   From the T accounts, determine the following: 
a. Total revenue for the period
b. Net income (or net loss)
c. Total withdrawals for the period
d. Ending balance of Rick Barton, Capital

Accepted Answer

a. $900
b.

Question 17

Powell Repair pays wages of $5,000 every other Friday ($500 per weekday).
a. In the journal provided, prepare the following entries (omit explanations) for the fiscal year ended March 31, 20xx:

b. What would the April 8 entry be if no reversing entry was made? Use the journal provided.

Accepted Answer

The answer of Powell Repair pays wages of $5,000 every...

Question 18

Which of the following accounts is not closed during the closing process?

Accepted Answer

A)  Owner's Capital 
B)  Commissions Earned 
C)  Income Summary. 
D)  Withdrawals 
A)  Owner's Capital 
B)  Commissions Earned 
C)  Income Summary. 
D)  Withdrawals

Question 19

The post-closing trial balance would not include which of the following accounts?

Accepted Answer

A)  Unearned Legal Fees 
B)  Accumulated Depreciation-Office Equipment 
C)  Withdrawals 
D)  Owner's Capital 
A)  Unearned Legal Fees 
B)  Accumulated Depreciation-Office Equipment 
C)  Withdrawals 
D)  Owner's Capital

Question 20

The total assets and the total liabilities and owner's equity on the balance sheet are the same as the totals of the Balance Sheet columns on the work sheet.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

An amount for owner's Capital would not appear in which of the following work sheet columns?

Why will the Income Summary account never appear on any financial statement?

Which of the following adjustments most likely would be reversed?

Nominal account balances are reduced to zero by closing entries.

In the accounting cycle, which of the following involves the measurement stage?

Typically, adjusting entries

Owner's Capital is closed by transferring the balance to Income Summary.

Information from the Income Statement columns of the work sheet of Landry Laundry Service is provided below: The entry to close the expense accounts is

The Income Summary account is credited in the entry that closes

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

Higley Repair pays wages of $8,000 every other Friday ($800 per weekday). a. In the journal provided, prepare the following entries for the fiscal year ended May 31, 20xx (omit explanations): b. What would the June 8 entry be if no reversing entry was made? Use the journal provided.

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 total amount of expenses for the period is

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?

An expense account is closed with a debit to the expense account and a credit to Income Summary.

The balances of all the accounts that appear on a balance sheet are the same on the adjusted trial balance as they are on a post-closing trial balance.

Powell Repair pays wages of $5,000 every other Friday ($500 per weekday). a. In the journal provided, prepare the following entries (omit explanations) for the fiscal year ended March 31, 20xx: b. What would the April 8 entry be if no reversing entry was made? Use the journal provided.

Which of the following accounts is not closed during the closing process?

The post-closing trial balance would not include which of the following accounts?

The total assets and the total liabilities and owner's equity on the balance sheet are the same as the totals of the Balance Sheet columns on the work sheet.

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