Question 1

Under which of the following categories would Accounts Payable appear?

Accepted Answer

A) Long-term assets 
B) Current assets 
C) Long-term liabilities 
D) Current liabilities 
A) Long-term assets 
B) Current assets 
C) Long-term liabilities 
D) Current liabilities

Question 2

Prepaid Rent is always classified as a long-term asset.

Accepted Answer

A) True 
 B)False

Question 3

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

Accepted Answer

A) long-term assets 
B) fully depreciated assets 
C) current assets 
D) current liabilities 
A) long-term assets 
B) fully depreciated assets 
C) current assets 
D) current liabilities

Question 4

The Service Revenue account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the current ratio implies that the profitability of the company has increased from the previous period.

Accepted Answer

A) True 
 B)False

Question 6

Revenue may be called Profit and Net Income may be called Turnover in an income statement prepared under IFRS.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is TRUE if the income statement debit column exceeds the income statement credit column of a worksheet?

Accepted Answer

A) The company incurred a net loss. 
B) Owner,Capital increased during the period. 
C) The company made a net profit. 
D) An error was made. 
A) The company incurred a net loss. 
B) Owner,Capital increased during the period. 
C) The company made a net profit. 
D) An error was made.

Question 8

Jackson Services Company earned revenues of $104,000,incurred expenses of $113,000.The owner made withdrawals of $4,000.There were no new capital contributions during the year.The company is a sole proprietorship.Which of the following statements is correct?

Accepted Answer

A) A debit is needed to zero out the balance of the Income Summary account. 
B) Jackson,Capital will decrease $13,000. 
C) Jackson has incurred a net loss of $5,000. 
D) When compared to a business that earned net income,the only closing entry that differs is the one to close the owner's withdrawals. 
A) A debit is needed to zero out the balance of the Income Summary account. 
B) Jackson,Capital will decrease $13,000. 
C) Jackson has incurred a net loss of $5,000. 
D) When compared to a business that earned net income,the only closing entry that differs is the one to close the owner's withdrawals.

Question 9

In which of the columns of a worksheet would a net loss be found?

Accepted Answer

A) in the balance sheet credit column and the income statement debit column 
B) in the balance sheet debit column and the income statement credit column 
C) in the unadjusted trial balance credit column,the adjusted trial balance credit column,and the balance sheet credit column 
D) in the unadjusted trial balance debit column,the adjusted trial balance debit column,and the balance sheet debit column 
A) in the balance sheet credit column and the income statement debit column 
B) in the balance sheet debit column and the income statement credit column 
C) in the unadjusted trial balance credit column,the adjusted trial balance credit column,and the balance sheet credit column 
D) in the unadjusted trial balance debit column,the adjusted trial balance debit column,and the balance sheet debit column

Question 10

The income statement section of the worksheet includes ________.

Accepted Answer

A) Land and Salaries Payable 
B) Owner,Capital and Owner,Withdrawals 
C) Furniture and Cash 
D) Service Revenue and Utilities Expense 
A) Land and Salaries Payable 
B) Owner,Capital and Owner,Withdrawals 
C) Furniture and Cash 
D) Service Revenue and Utilities Expense

Question 11

Under which of the following categories would Accounts Receivable appear?

Accepted Answer

A) Current assets 
B) Current liabilities 
C) Long-term assets 
D) Long-term liabilities 
A) Current assets 
B) Current liabilities 
C) Long-term assets 
D) Long-term liabilities

Question 12

Which of the following statements is TRUE of the worksheet?

Accepted Answer

A) The worksheet is a tool that takes the place of financial statement preparation. 
B) The worksheet is a document used to summarize data to prepare financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of a company. 
D) The worksheet is a type of journal. 
A) The worksheet is a tool that takes the place of financial statement preparation. 
B) The worksheet is a document used to summarize data to prepare financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of a company. 
D) The worksheet is a type of journal.

Question 13

To which of the following accounts should the balance in the Income Summary account be closed?

Accepted Answer

A) Owner,Withdrawals 
B) Net Income 
C) Owner,Capital 
D) Service Revenue 
A) Owner,Withdrawals 
B) Net Income 
C) Owner,Capital 
D) Service Revenue

Question 14

Which of the following is NOT a balance sheet account?

Accepted Answer

A) Unearned Revenue 
B) Prepaid Rent 
C) Accumulated Depreciation - Building 
D) Owner,Withdrawals 
A) Unearned Revenue 
B) Prepaid Rent 
C) Accumulated Depreciation - Building 
D) Owner,Withdrawals

Question 15

Which of the following accounts will be included in a post-closing trial balance?

Accepted Answer

A) Service Revenue 
B) Rent Expense 
C) Interest Expense 
D) Unearned Revenue 
A) Service Revenue 
B) Rent Expense 
C) Interest Expense 
D) Unearned Revenue

Question 16

The Cash account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 17

Patents,copyrights,and trademarks are examples of ________.

Accepted Answer

A) short-term investments 
B) fixed assets 
C) long-term investments 
D) intangible assets 
A) short-term investments 
B) fixed assets 
C) long-term investments 
D) intangible assets

Question 18

In an accounting cycle,an analysis of transactions is performed at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 19

A balance sheet prepared in the report form lists the assets on the left and the liabilities and owner's equity on the right.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Accepted Answer

A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment 
A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment

Under which of the following categories would Accounts Payable appear?

Prepaid Rent is always classified as a long-term asset.

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

The Service Revenue account is a temporary account.

An increase in the current ratio implies that the profitability of the company has increased from the previous period.

Revenue may be called Profit and Net Income may be called Turnover in an income statement prepared under IFRS.

Which of the following statements is TRUE if the income statement debit column exceeds the income statement credit column of a worksheet?

Jackson Services Company earned revenues of $104,000,incurred expenses of $113,000.The owner made withdrawals of $4,000.There were no new capital contributions during the year.The company is a sole proprietorship.Which of the following statements is correct?

In which of the columns of a worksheet would a net loss be found?

The income statement section of the worksheet includes ________.

Under which of the following categories would Accounts Receivable appear?

Which of the following statements is TRUE of the worksheet?

To which of the following accounts should the balance in the Income Summary account be closed?

Which of the following is NOT a balance sheet account?

Which of the following accounts will be included in a post-closing trial balance?

The Cash account is a temporary account.

Patents,copyrights,and trademarks are examples of ________.

In an accounting cycle,an analysis of transactions is performed at the end of each accounting period.

A balance sheet prepared in the report form lists the assets on the left and the liabilities and owner's equity on the right.

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

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

Under which of the following categories would Accounts Payable appear?

Prepaid Rent is always classified as a long-term asset.

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

The Service Revenue account is a temporary account.

An increase in the current ratio implies that the profitability of the company has increased from the previous period.

Revenue may be called Profit and Net Income may be called Turnover in an income statement prepared under IFRS.

Which of the following statements is TRUE if the income statement debit column exceeds the income statement credit column of a worksheet?

Jackson Services Company earned revenues of $104,000,incurred expenses of $113,000.The owner made withdrawals of $4,000.There were no new capital contributions during the year.The company is a sole proprietorship.Which of the following statements is correct?

In which of the columns of a worksheet would a net loss be found?

The income statement section of the worksheet includes ________.

Under which of the following categories would Accounts Receivable appear?

Which of the following statements is TRUE of the worksheet?

To which of the following accounts should the balance in the Income Summary account be closed?

Which of the following is NOT a balance sheet account?

Which of the following accounts will be included in a post-closing trial balance?

The Cash account is a temporary account.

Patents,copyrights,and trademarks are examples of ________.

In an accounting cycle,an analysis of transactions is performed at the end of each accounting period.

A balance sheet prepared in the report form lists the assets on the left and the liabilities and owner's equity on the right.

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

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