Question 1

Reversing entries are used in conjunction with ________.

Accepted Answer

A) accrual-type adjustments 
B) deferred revenues 
C) deferred expenses 
D) Unearned Revenue and Prepaid Rent 
A) accrual-type adjustments 
B) deferred revenues 
C) deferred expenses 
D) Unearned Revenue and Prepaid Rent

Question 2

Which of the following accounts will be closed by debiting the Income Summary account?

Accepted Answer

A) Owner,Capital 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense 
A) Owner,Capital 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense

Question 3

Answer the following questions regarding the current ratio:

Accepted Answer

The answer of Answer the following questions regarding the current...

Question 4

When a business uses a computerized accounting system,the software automatically closes the books.

Accepted Answer

A) True 
 B)False

Question 5

The closing process helps in measuring each period's net income separately from all other periods.

Accepted Answer

A) True 
 B)False

Question 6

A list of the accounts and their balances at the end of the period,after journalizing and posting the closing entries,is called ________.

Accepted Answer

A) chart of accounts 
B) adjusted trial balance 
C) post-closing trial balance 
D) pre-closing balance sheet 
A) chart of accounts 
B) adjusted trial balance 
C) post-closing trial balance 
D) pre-closing balance sheet

Question 7

List the order in which the balance sheet,statement of owner's equity,and income statement are prepared.Briefly discuss why this order is necessary.

Accepted Answer

The order in which these statements are

Question 8

At the end of the period,the accounting cycle includes adjusting the accounts,preparing financial statements,and closing the accounts.

Accepted Answer

A) True 
 B)False

Question 9

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

Accepted Answer

A) True 
 B)False

Question 10

Complete Cleaning Services pays out wages every week on Friday.Payroll expense totals $4,000 per week,based on a five-day week.The month of June ended on a Thursday.On Thursday,June 30,Complete made the following accrual adjustment:
   At the same time,they prepared the following reversing entry to be booked on July 1:
   On Friday afternoon,when wages were paid,what journal entry was made? Omit explanation.

Accepted Answer

The answer of Complete Cleaning Services pays out wages every...

Question 11

The operating cycle is the time span required for a business to repay its long-term liabilities.

Accepted Answer

A) True 
 B)False

Question 12

Permanent accounts are not closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 13

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 14

The Salaries Payable account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 15

The Interest Expense in the worksheet's unadjusted trial balance column is $1,000.Interest Expense in the income statement column is $12,000.Which of the following entries would have caused this difference?

Accepted Answer

A) a $12,000 credit to Interest Expense in the worksheet's adjustments column 
B) a $12,000 credit to Interest Payable in the worksheet's adjustments column 
C) a $11,000 debit to Interest Expense in the worksheet's adjustments column 
D) a $11,000 credit to Interest Expense in the worksheet's adjustments column 
A) a $12,000 credit to Interest Expense in the worksheet's adjustments column 
B) a $12,000 credit to Interest Payable in the worksheet's adjustments column 
C) a $11,000 debit to Interest Expense in the worksheet's adjustments column 
D) a $11,000 credit to Interest Expense in the worksheet's adjustments column

Question 16

Woods Company earned revenues of $12,000 and incurred expenses of $9,500.The owner,Woods,withdrew $3,000.What is the balance in the Income Summary account after closing net income or loss to the Woods,Capital account?

Accepted Answer

A) debit balance of $12,000 
B) credit balance of $9,500 
C) credit balance of $2,500 
D) balance of $0 
A) debit balance of $12,000 
B) credit balance of $9,500 
C) credit balance of $2,500 
D) balance of $0

Question 17

Assets are listed in the order of their ________ on the balance sheet.

Accepted Answer

A) magnitude 
B) dates of purchase 
C) liquidity 
D) durability 
A) magnitude 
B) dates of purchase 
C) liquidity 
D) durability

Question 18

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Accepted Answer

A) True 
 B)False

Question 19

Assets with no physical form are ________.

Accepted Answer

A) current assets 
B) intangible assets 
C) not listed on the balance sheet because they have no value 
D) included in owner's equity 
A) current assets 
B) intangible assets 
C) not listed on the balance sheet because they have no value 
D) included in owner's equity

Question 20

Which of the following accounts will be closed by debiting the Income Summary account?

Accepted Answer

A) Depreciation Expense 
B) Accounts Payable 
C) Service Revenue 
D) Accumulated Depreciation 
A) Depreciation Expense 
B) Accounts Payable 
C) Service Revenue 
D) Accumulated Depreciation

Reversing entries are used in conjunction with ________.

Which of the following accounts will be closed by debiting the Income Summary account?

Answer the following questions regarding the current ratio:

When a business uses a computerized accounting system,the software automatically closes the books.

The closing process helps in measuring each period's net income separately from all other periods.

A list of the accounts and their balances at the end of the period,after journalizing and posting the closing entries,is called ________.

List the order in which the balance sheet,statement of owner's equity,and income statement are prepared.Briefly discuss why this order is necessary.

At the end of the period,the accounting cycle includes adjusting the accounts,preparing financial statements,and closing the accounts.

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

The operating cycle is the time span required for a business to repay its long-term liabilities.

Permanent accounts are not closed at the end of the accounting period.

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

The Salaries Payable account is a permanent account.

The Interest Expense in the worksheet's unadjusted trial balance column is $1,000.Interest Expense in the income statement column is $12,000.Which of the following entries would have caused this difference?

Woods Company earned revenues of $12,000 and incurred expenses of $9,500.The owner,Woods,withdrew $3,000.What is the balance in the Income Summary account after closing net income or loss to the Woods,Capital account?

Assets are listed in the order of their ________ on the balance sheet.

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Assets with no physical form are ________.

Which of the following accounts will be closed by debiting the Income Summary account?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Completing the Accounting Cycle

Reversing entries are used in conjunction with ________.

Which of the following accounts will be closed by debiting the Income Summary account?

Answer the following questions regarding the current ratio:

When a business uses a computerized accounting system,the software automatically closes the books.

The closing process helps in measuring each period's net income separately from all other periods.

A list of the accounts and their balances at the end of the period,after journalizing and posting the closing entries,is called ________.

List the order in which the balance sheet,statement of owner's equity,and income statement are prepared.Briefly discuss why this order is necessary.

At the end of the period,the accounting cycle includes adjusting the accounts,preparing financial statements,and closing the accounts.

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

The operating cycle is the time span required for a business to repay its long-term liabilities.

Permanent accounts are not closed at the end of the accounting period.

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

The Salaries Payable account is a permanent account.

The Interest Expense in the worksheet's unadjusted trial balance column is $1,000.Interest Expense in the income statement column is $12,000.Which of the following entries would have caused this difference?

Woods Company earned revenues of $12,000 and incurred expenses of $9,500.The owner,Woods,withdrew $3,000.What is the balance in the Income Summary account after closing net income or loss to the Woods,Capital account?

Assets are listed in the order of their ________ on the balance sheet.

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Assets with no physical form are ________.

Which of the following accounts will be closed by debiting the Income Summary account?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Filters