Question 1

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

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

Question 2

A reversing entry will include either a debit to a revenue account or a credit to an expense account.

Accepted Answer

A) True 
 B)False

Question 3

The amount placed opposite the Land account in the Balance Sheet columns of the work sheet is the amount to be reflected for Land on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 4

When the Balance Sheet columns of the work sheet are initially footed,they should be in balance.

Accepted Answer

A) True 
 B)False

Question 5

The adjustment dated 12/31/20x1 to accrue interest to be paid most likely would be reversed by which of the following entries?

Accepted Answer

A) Debit Interest Payable and credit Interest Expense dated 1/1/20x2 
B) Debit Interest Expense and credit Interest Payable dated 12/31/20x1 
C) Debit Interest Payable and credit Interest Expense dated 12/31/20x1 
D) Debit Interest Expense and credit Interest Payable dated 1/1/20x2 
A) Debit Interest Payable and credit Interest Expense dated 1/1/20x2 
B) Debit Interest Expense and credit Interest Payable dated 12/31/20x1 
C) Debit Interest Payable and credit Interest Expense dated 12/31/20x1 
D) Debit Interest Expense and credit Interest Payable dated 1/1/20x2

Question 6

The work sheet should be prepared after the formal financial statements have been prepared.

Accepted Answer

A) True 
 B)False

Question 7

An adjusted trial balance provides all the data needed to record the closing entries.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following accounts would not be closed?

Accepted Answer

A) Design Revenue 
B) Interest Income 
C) Accumulated Depreciation - Equipment 
D) Interest Expense 
A) Design Revenue 
B) Interest Income 
C) Accumulated Depreciation - Equipment 
D) Interest Expense

Question 9

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

Accepted Answer

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

Question 10

The heading of a work sheet might contain the line "As of February 28,20x5."

Accepted Answer

A) True 
 B)False

Question 11

The Adjusted Trial Balance columns of the work sheet are prepared by combining the Trial Balance and Adjustments columns of the work sheet.

Accepted Answer

A) True 
 B)False

Question 12

Closing entries deal primarily with the balances of real accounts.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

In preparing closing entries,which of the following columns of the work sheet are the most helpful?

Accepted Answer

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

Question 15

Omitting key letters in the work sheet would make which of the following difficult?

Accepted Answer

A) The preparation of the closing entries 
B) The preparation of the financial statements 
C) Crossfooting to the next set of columns 
D) The preparation of the adjusting entries 
A) The preparation of the closing entries 
B) The preparation of the financial statements 
C) Crossfooting to the next set of columns 
D) The preparation of the adjusting entries

Question 16

Prepare closing entries for December (omit explanations)from the following Income Statement columns of the work sheet of Kemp Corporation,assuming that a $1,000 withdrawal was made during the period.

Accepted Answer

The answer of Prepare closing entries for December (omit explanations)from...

Question 17

Under which circumstance would one less closing entry than usual be made?

Accepted Answer

A) When a net loss has been suffered 
B) When withdrawals by the owner are equal to net income for the period 
C) When net income is zero 
D) When the owner's Capital account is zero prior to posting of closing entries 
A) When a net loss has been suffered 
B) When withdrawals by the owner are equal to net income for the period 
C) When net income is zero 
D) When the owner's Capital account is zero prior to posting of closing entries

Question 18

The Income Statement columns of the work sheet show all the accounts that need to be closed.

Accepted Answer

A) True 
 B)False

Question 19

Working papers provide a written record of the work performed by the accountant or auditor.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

Exam 4: Completing the Accounting Cycle

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

A reversing entry will include either a debit to a revenue account or a credit to an expense account.

The amount placed opposite the Land account in the Balance Sheet columns of the work sheet is the amount to be reflected for Land on the balance sheet.

When the Balance Sheet columns of the work sheet are initially footed,they should be in balance.

The adjustment dated 12/31/20x1 to accrue interest to be paid most likely would be reversed by which of the following entries?

The work sheet should be prepared after the formal financial statements have been prepared.

An adjusted trial balance provides all the data needed to record the closing entries.

Which of the following accounts would not be closed?

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

The heading of a work sheet might contain the line "As of February 28,20x5."

The Adjusted Trial Balance columns of the work sheet are prepared by combining the Trial Balance and Adjustments columns of the work sheet.

Closing entries deal primarily with the balances of real accounts.

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

In preparing closing entries,which of the following columns of the work sheet are the most helpful?

Omitting key letters in the work sheet would make which of the following difficult?

Prepare closing entries for December (omit explanations)from the following Income Statement columns of the work sheet of Kemp Corporation,assuming that a $1,000 withdrawal was made during the period.

Under which circumstance would one less closing entry than usual be made?

The Income Statement columns of the work sheet show all the accounts that need to be closed.

Working papers provide a written record of the work performed by the accountant or auditor.

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

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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