Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The Income Summary account is credited in the entry that closes

Accepted Answer

A) the Withdrawals account. 
B) expense accounts. 
C) net income. 
D) revenue accounts. 
A) the Withdrawals account. 
B) expense accounts. 
C) net income. 
D) revenue accounts.

Question 3

IFRS are important to multinational companies because

Accepted Answer

A) if they can use IFRS for all their operations,it would simplify the process of preparing financial statements. 
B) it would lower their taxes in each country in which they do business. 
C) it would enable them to achieve higher profitability due to the different reporting standards under IFRS. 
D) All of these choices. 
A) if they can use IFRS for all their operations,it would simplify the process of preparing financial statements. 
B) it would lower their taxes in each country in which they do business. 
C) it would enable them to achieve higher profitability due to the different reporting standards under IFRS. 
D) All of these choices.

Question 4

There is sufficient information on a post-closing trial balance to prepare an income statement.

Accepted Answer

A) True 
 B)False

Question 5

Reversing entries are all dated as of the first day of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following accounts is not closed during the closing process?

Accepted Answer

A) Owner's Capital 
B) Commissions Earned 
C) Income Summary. 
D) Withdrawals 
A) Owner's Capital 
B) Commissions Earned 
C) Income Summary. 
D) Withdrawals

Question 7

The balances of all the real (permanent)accounts are the same on the adjusted trial balance as they are on a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 8

Closing entries will

Accepted Answer

A) decrease the owner's Capital balance. 
B) either increase or decrease the owner's Capital balance. 
C) increase the owner's Capital balance. 
D) not affect the owner's Capital balance. 
A) decrease the owner's Capital balance. 
B) either increase or decrease the owner's Capital balance. 
C) increase the owner's Capital balance. 
D) not affect the owner's Capital balance.

Question 9

The preparation of adjusting entries

Accepted Answer

A) is easy because they are simply copied from the work sheet. 
B) is difficult,and therefore they must first be entered into the journal in pencil. 
C) typically precedes preparation of the work sheet. 
D) typically succeeds the preparation of the financial statements. 
A) is easy because they are simply copied from the work sheet. 
B) is difficult,and therefore they must first be entered into the journal in pencil. 
C) typically precedes preparation of the work sheet. 
D) typically succeeds the preparation of the financial statements.

Question 10

When a company has a net loss,the net loss amount is entered on the work sheet on the

Accepted Answer

A) credit side of both the Income Statement and the Balance Sheet columns. 
B) credit side of the Income Statement columns and the debit side of the Balance Sheet columns. 
C) debit side of the Income Statement columns and the credit side of the Balance Sheet columns. 
D) debit side of both the Income Statement and the Balance Sheet columns. 
A) credit side of both the Income Statement and the Balance Sheet columns. 
B) credit side of the Income Statement columns and the debit side of the Balance Sheet columns. 
C) debit side of the Income Statement columns and the credit side of the Balance Sheet columns. 
D) debit side of both the Income Statement and the Balance Sheet columns.

Question 11

Reversing entries can be made for accruals,but not for deferrals.

Accepted Answer

A) True 
 B)False

Question 12

Using the following information and the trial balance accounts and balances in the work sheet provided,complete the work sheet.
a.Expired insurance totals $260.
b.Of the unearned revenue,all has been earned by the balance sheet date.
c.Estimated depreciation of equipment is $120.
d.Accrued wages equal $400.
e.Unused supplies on hand are $90.

Accepted Answer

The answer of Using the following information and the trial...

Question 13

After all closing entries have been posted,which of the following accounts is most likely to have a nonzero balance?

Accepted Answer

A) Interest Expense 
B) Unearned Revenue 
C) Service Revenue 
D) Income Summary 
A) Interest Expense 
B) Unearned Revenue 
C) Service Revenue 
D) Income Summary

Question 14

K & K Enterprises pays wages of $16,000 every other Friday ($1,600 per weekday).
a.In the journal provided,prepare the following entries for the fiscal year ended May 31,20x5 (omit explanations):
 
  b.What would the June 8 entry be if no reversing entry was made? Use the journal provided.

Accepted Answer

The answer of K & K Enterprises pays wages of...

Question 15

Use the following adjusted trial balance to answer the question below.   
-The entry to close the John Clair,Withdrawals account is:

Accepted Answer

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

Question 16

Which of the following accounts is a real account?

Accepted Answer

A) Building 
B) Depreciation Expense-Buildings 
C) Interest Expense 
D) Service Revenue 
A) Building 
B) Depreciation Expense-Buildings 
C) Interest Expense 
D) Service Revenue

Question 17

Which of the following adjustments most likely would be reversed?

Accepted Answer

A) Adjustment to record depreciation expense 
B) Adjustment to allocate prepaid insurance to the current period 
C) Adjustment to determine supplies expense for the period 
D) Adjustment to accrue salaries 
A) Adjustment to record depreciation expense 
B) Adjustment to allocate prepaid insurance to the current period 
C) Adjustment to determine supplies expense for the period 
D) Adjustment to accrue salaries

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:   
-The total amount of expenses for the period is

Accepted Answer

A) $200. 
B) $400. 
C) $900. 
D) $500. 
A) $200. 
B) $400. 
C) $900. 
D) $500.

Question 20

The post-closing trial balance differs from the adjusted trial balance in that it does not

Accepted Answer

A) take into account owner investments and withdrawals. 
B) take into account adjusting entries. 
C) include income statement accounts. 
D) include balance sheet accounts. 
A) take into account owner investments and withdrawals. 
B) take into account adjusting entries. 
C) include income statement accounts. 
D) include balance sheet accounts.

Exam 4: Completing the Accounting Cycle

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

The Income Summary account is credited in the entry that closes

IFRS are important to multinational companies because

There is sufficient information on a post-closing trial balance to prepare an income statement.

Reversing entries are all dated as of the first day of the new accounting period.

Which of the following accounts is not closed during the closing process?

The balances of all the real (permanent)accounts are the same on the adjusted trial balance as they are on a post-closing trial balance.

Closing entries will

The preparation of adjusting entries

When a company has a net loss,the net loss amount is entered on the work sheet on the

Reversing entries can be made for accruals,but not for deferrals.

After all closing entries have been posted,which of the following accounts is most likely to have a nonzero balance?

K & K Enterprises pays wages of $16,000 every other Friday ($1,600 per weekday). a.In the journal provided,prepare the following entries for the fiscal year ended May 31,20x5 (omit explanations): b.What would the June 8 entry be if no reversing entry was made? Use the journal provided.

Use the following adjusted trial balance to answer the question below. -The entry to close the John Clair,Withdrawals account is:

Which of the following accounts is a real account?

Which of the following adjustments most likely would be reversed?

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

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: -The total amount of expenses for the period is

The post-closing trial balance differs from the adjusted trial balance in that it does not

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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