Question 1

The amount of the Withdrawals account can be found on the work sheet.

Accepted Answer

A) True 
 B)False

Question 2

A reversing entry

Accepted Answer

A) is made on the last day of the fiscal year after closing entries have been posted. 
B) is made on the last day of the fiscal year before closing entries have been posted. 
C) is made on the first day of an accounting period. 
D) replicates the adjusting entry that was made in the previous period because the adjusting entry was closed to retained earnings during the closing process. 
A) is made on the last day of the fiscal year after closing entries have been posted. 
B) is made on the last day of the fiscal year before closing entries have been posted. 
C) is made on the first day of an accounting period. 
D) replicates the adjusting entry that was made in the previous period because the adjusting entry was closed to retained earnings during the closing process.

Question 3

During the closing process,revenues are transferred to the debit side of the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following entries could not be a legitimate reversing entry?

Accepted Answer

A) Debit Wages Payable and credit Wages Expense 
B) Debit Fees Earned and credit Accounts Receivable 
C) Debit Interest Payable and credit Interest Expense 
D) Debit Interest Receivable and credit Interest Income 
A) Debit Wages Payable and credit Wages Expense 
B) Debit Fees Earned and credit Accounts Receivable 
C) Debit Interest Payable and credit Interest Expense 
D) Debit Interest Receivable and credit Interest Income

Question 5

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 amount of withdrawals for the period is

Accepted Answer

A) $550. 
B) $300. 
C) $600. 
D) $1,500. 
A) $550. 
B) $300. 
C) $600. 
D) $1,500.

Question 6

The Income Statement columns of the work sheet show all the accounts that need to be closed,except for the Withdrawals account.

Accepted Answer

A) True 
 B)False

Question 7

The balance of the Wages Expense account of Ryan Company,prior to adjustment,was $95,000.On December 31,the end of the fiscal year,an adjustment for $7,900 of accrued wages needed to be made.On January 12,wages of $56,400 were paid.Prepare the adjusting entry for wages,the entry to close the Wages Expense account,the corresponding reversing entry,and the entry to pay the wages on January 12.Omit explanations.

Accepted Answer

The answer of The balance of the Wages Expense account...

Question 8

The work sheet is a type of accountant's working paper.

Accepted Answer

A) True 
 B)False

Question 9

Despite the many uses of laptop computers,they cannot be used to prepare work sheets.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following accounts probably would have a smaller balance in the Adjusted Trial Balance columns of a work sheet than in the Trial Balance columns?

Accepted Answer

A) Accumulated Depreciation-Equipment 
B) Wages Payable 
C) Wages Expense 
D) Prepaid Advertising 
A) Accumulated Depreciation-Equipment 
B) Wages Payable 
C) Wages Expense 
D) Prepaid Advertising

Question 11

The adjusting entries involving Depreciation Expense-Buildings and Supplies Expense could be reversed.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a temporary account?

Accepted Answer

A) Depreciation Expense-Vehicles 
B) Service Revenue 
C) Unearned Revenue 
D) Interest Income 
A) Depreciation Expense-Vehicles 
B) Service Revenue 
C) Unearned Revenue 
D) Interest Income

Question 13

A revenue account is closed with a debit to the revenue account and a credit to Income Summary.

Accepted Answer

A) True 
 B)False

Question 14

When a company has net income,the Income Summary account appears as a credit on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 15

Indicate with an X in the appropriate column the type of entry to be made to close the following accounts:

Accepted Answer

The answer of Indicate with an X in the appropriate...

Question 16

There is sufficient information on a post-closing trial balance to prepare a balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

On the completed work sheet,which set of columns usually should be out of balance after the initial footing?

Accepted Answer

A) Both Income Statement and Balance Sheet columns 
B) Balance Sheet columns only 
C) Income Statement columns only 
D) Adjusted Trial Balance columns only 
A) Both Income Statement and Balance Sheet columns 
B) Balance Sheet columns only 
C) Income Statement columns only 
D) Adjusted Trial Balance columns only

Question 18

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 19

The adjusting entries entered onto a work sheet must still be recorded in the general journal.

Accepted Answer

A) True 
 B)False

Question 20

The post-closing trial balance will contain only nominal accounts.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The amount of the Withdrawals account can be found on the work sheet.

A reversing entry

During the closing process,revenues are transferred to the debit side of the Income Summary account.

Which of the following entries could not be a legitimate reversing entry?

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 amount of withdrawals for the period is

The Income Statement columns of the work sheet show all the accounts that need to be closed,except for the Withdrawals account.

The work sheet is a type of accountant's working paper.

Despite the many uses of laptop computers,they cannot be used to prepare work sheets.

Which of the following accounts probably would have a smaller balance in the Adjusted Trial Balance columns of a work sheet than in the Trial Balance columns?

The adjusting entries involving Depreciation Expense-Buildings and Supplies Expense could be reversed.

Which of the following is not a temporary account?

A revenue account is closed with a debit to the revenue account and a credit to Income Summary.

When a company has net income,the Income Summary account appears as a credit on the post-closing trial balance.

Indicate with an X in the appropriate column the type of entry to be made to close the following accounts:

There is sufficient information on a post-closing trial balance to prepare a balance sheet.

On the completed work sheet,which set of columns usually should be out of balance after the initial footing?

Failure to prepare closing entries will produce a misstated

The adjusting entries entered onto a work sheet must still be recorded in the general journal.

The post-closing trial balance will contain only nominal accounts.

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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