Question 1

Which account that does not appear on the balance sheet has an amount in the Balance Sheet columns of a work sheet?

Accepted Answer

A) Depreciation Expense-Trucks 
B) Withdrawals 
C) Accumulated Depreciation-Trucks 
D) Owner's Capital 
A) Depreciation Expense-Trucks 
B) Withdrawals 
C) Accumulated Depreciation-Trucks 
D) Owner's Capital B

Question 2

Closing entries can be prepared by referring solely to the Income Statement columns of the work sheet.

Accepted Answer

A) True 
 B)False  False

Question 3

Use the following adjusted trial balance to answer the question below.   
-The entry to close Income Summary is

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)   A

Question 4

The adjusting entries involving Rent Receivable and Salaries Payable could be reversed.

Accepted Answer

A) True 
 B)False

Question 5

Since the balance of the Accumulated Depreciation account will appear on the asset side of the balance sheet,it is placed on the debit side of the work sheet's Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 6

Cash is a nominal account.

Accepted Answer

A) True 
 B)False

Question 7

Preparing the work sheet

Accepted Answer

A) is done rather than preparing financial statements. 
B) provides a mechanism for applying the going concern concept. 
C) provides a mechanism for applying the periodicity concept. 
D) All of these choices. 
A) is done rather than preparing financial statements. 
B) provides a mechanism for applying the going concern concept. 
C) provides a mechanism for applying the periodicity concept. 
D) All of these choices.

Question 8

Which of the following items is associated with a purpose of the work sheet?

Accepted Answer

A) Recording adjusting entries. 
B) Financial statements that are up to date for measuring financial progress. 
C) Preparing budgets. 
D) All of these choices. 
A) Recording adjusting entries. 
B) Financial statements that are up to date for measuring financial progress. 
C) Preparing budgets. 
D) All of these choices.

Question 9

Closing entries ultimately will affect

Accepted Answer

A) total liabilities. 
B) the Cash account. 
C) the owner's Capital account. 
D) total assets. 
A) total liabilities. 
B) the Cash account. 
C) the owner's Capital account. 
D) total assets.

Question 10

Probably the last account to be listed on a post-closing trial balance would be

Accepted Answer

A) Income Summary. 
B) Wages Payable. 
C) Owner's Capital. 
D) Wages Expense. 
A) Income Summary. 
B) Wages Payable. 
C) Owner's Capital. 
D) Wages Expense.

Question 11

Use the following adjusted trial balance to answer the question below.   
-The amount of net income (or net loss)during the period is

Accepted Answer

A) $182,000 net income. 
B) $122,000 net loss. 
C) $92,000 net income. 
D) $52,000 net income. 
A) $182,000 net income. 
B) $122,000 net loss. 
C) $92,000 net income. 
D) $52,000 net income.

Question 12

Indicate in the spaces below whether each of the following entries appears to be an adjusting entry (AE),a closing entry (CE),or a reversing entry (RE).

Accepted Answer

The answer of Indicate in the spaces below whether each...

Question 13

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

Accepted Answer

A) John Clair,Withdrawals 
B) Jet Ski Rentals 
C) Depreciation Expense-Building 
D) Wages Expense 
A) John Clair,Withdrawals 
B) Jet Ski Rentals 
C) Depreciation Expense-Building 
D) Wages Expense

Question 14

From the following items in the Income Statement columns of the work sheet of Sailors Co.at December 31,20x5,prepare the closing entries without explanations,assuming that a $100 withdrawal was made by the owner during the period.

Accepted Answer

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

Question 15

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 16

Preparing the worksheet and closing entries provide a mechanism for applying the concept of periodicity.

Accepted Answer

A) True 
 B)False

Question 17

When there is a net loss,the entry to close the Income Summary account is

Accepted Answer

A) debit Owner's Capital and credit Income Summary. 
B) debit Income Summary and credit Owner's Capital. 
C) debit Net Loss and credit Income Summary. 
D) debit Income Summary and credit Net Loss. 
A) debit Owner's Capital and credit Income Summary. 
B) debit Income Summary and credit Owner's Capital. 
C) debit Net Loss and credit Income Summary. 
D) debit Income Summary and credit Net Loss.

Question 18

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

Accepted Answer

A) Depreciation Expense-Equipment 
B) Owner's Capital 
C) Unearned Revenue 
D) Income Summary 
A) Depreciation Expense-Equipment 
B) Owner's Capital 
C) Unearned Revenue 
D) Income Summary

Question 19

In preparing adjustments on the work sheet,which of the following accounts most likely would be added to the Account Name column?

Accepted Answer

A) Telephone Expense 
B) Owner's Capital 
C) Property Taxes Payable 
D) Accumulated Depreciation-Buildings 
A) Telephone Expense 
B) Owner's Capital 
C) Property Taxes Payable 
D) Accumulated Depreciation-Buildings

Question 20

Below are the adjusted accounts of Carlson Co.for the month ended May 31,20x5,listed in alphabetical order:
 Prepare a post-closing trial balance.

Accepted Answer

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

Exam 4: Completing the Accounting Cycle

Which account that does not appear on the balance sheet has an amount in the Balance Sheet columns of a work sheet?

Closing entries can be prepared by referring solely to the Income Statement columns of the work sheet.

Use the following adjusted trial balance to answer the question below. -The entry to close Income Summary is

The adjusting entries involving Rent Receivable and Salaries Payable could be reversed.

Since the balance of the Accumulated Depreciation account will appear on the asset side of the balance sheet,it is placed on the debit side of the work sheet's Balance Sheet columns.

Cash is a nominal account.

Preparing the work sheet

Which of the following items is associated with a purpose of the work sheet?

Closing entries ultimately will affect

Probably the last account to be listed on a post-closing trial balance would be

Use the following adjusted trial balance to answer the question below. -The amount of net income (or net loss)during the period is

Indicate in the spaces below whether each of the following entries appears to be an adjusting entry (AE),a closing entry (CE),or a reversing entry (RE).

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

From the following items in the Income Statement columns of the work sheet of Sailors Co.at December 31,20x5,prepare the closing entries without explanations,assuming that a $100 withdrawal was made by the owner during the period.

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

Preparing the worksheet and closing entries provide a mechanism for applying the concept of periodicity.

When there is a net loss,the entry to close the Income Summary account is

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

In preparing adjustments on the work sheet,which of the following accounts most likely would be added to the Account Name column?

Below are the adjusted accounts of Carlson Co.for the month ended May 31,20x5,listed in alphabetical order: Prepare a post-closing trial balance.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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