Question 1

Explain the differences between a nonclassified balance sheet and a classified balance sheet.

Accepted Answer

A classified balance sheet subsections a

Question 2

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for Mackenzie Company:
   Prepare a classified balance sheet.

Accepted Answer

The answer of The following data were taken from the...

Question 3

An indication that the work sheet columns are in balance and the work sheet is completed is

Accepted Answer

A)  the word "Total" is written at the bottom of each pair of columns 
B)  each pair of columns is double underlined 
C)  each pair of columns has the totals circled 
D)  the final figures are written in ink 
A)  the word "Total" is written at the bottom of each pair of columns 
B)  each pair of columns is double underlined 
C)  each pair of columns has the totals circled 
D)  the final figures are written in ink

Question 4

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows:
  
 Prepare the entry required to close the expense accounts at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings. It's...

Question 5

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the fixed asset accounts listed below will not have a related contra asset account?

Accepted Answer

A)  Office Equipment 
B)  Land 
C)  Delivery Equipment 
D)  Building 
A)  Office Equipment 
B)  Land 
C)  Delivery Equipment 
D)  Building

Question 7

The classified balance sheet will have liabilities divided into the following subsections

Accepted Answer

A)  Current Liabilities and Long-Term Liabilities 
B)  Current Liabilities and Other Liabilities 
C)  Other Liabilities and Long-Term Liabilities 
D)  Present Liabilities and Tomorrow's Liabilities 
A)  Current Liabilities and Long-Term Liabilities 
B)  Current Liabilities and Other Liabilities 
C)  Other Liabilities and Long-Term Liabilities 
D)  Present Liabilities and Tomorrow's Liabilities

Question 8

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet for the year ended April 30, 2011, for Finnegan Co.:
   Prepare an income statement.

Accepted Answer

The answer of The following accounts were taken from the...

Question 9

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow.  
Determine total assets.

Accepted Answer

A)  $24,130 
B)  $15,830 
C)  $21,930 
D)  $23,030 
A)  $24,130 
B)  $15,830 
C)  $21,930 
D)  $23,030

Question 10

The income statement is prepared from:

Accepted Answer

A)  either the post-closing trial balance or the unadjusted trial balance columns of the work sheet. 
B)  either the unadjusted trial balance or the balance sheet columns of the work sheet. 
C)  either the adjusted trial balance or the income statement columns of the work sheet. 
D)  both the adjusted trial balance and the balance sheet columns of the work sheet. 
A)  either the post-closing trial balance or the unadjusted trial balance columns of the work sheet. 
B)  either the unadjusted trial balance or the balance sheet columns of the work sheet. 
C)  either the adjusted trial balance or the income statement columns of the work sheet. 
D)  both the adjusted trial balance and the balance sheet columns of the work sheet.

Question 11

In a computerized accounting system, a work sheet may not be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Accepted Answer

A) True 
 B)False

Question 12

Notes receivable due in 350 days appear on the

Accepted Answer

A)  balance sheet in the current assets section 
B)  balance sheet in the fixed assets section 
C)  balance sheet in the current liabilities section 
D)  income statement as an expense 
A)  balance sheet in the current assets section 
B)  balance sheet in the fixed assets section 
C)  balance sheet in the current liabilities section 
D)  income statement as an expense

Question 13

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Accepted Answer

A) True 
 B)False

Question 14

The following is the adjusted trial balance for Sandeep Company.
   Prepare closing entries and the post closing trial balance.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 15

The following are steps to the accounting cycle. Of the following, which step should be done first?

Accepted Answer

A)  Closing entries are journalized and posted to the ledger. 
B)  Transactions are posted to the ledger. 
C)  Adjusting entries are journalized and posted to the ledger. 
D)  Financial statements are prepared. 
A)  Closing entries are journalized and posted to the ledger. 
B)  Transactions are posted to the ledger. 
C)  Adjusting entries are journalized and posted to the ledger. 
D)  Financial statements are prepared.

Question 16

Which of the statements below indicates that a company earned a net income for the period?

Accepted Answer

A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the work sheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet. 
D)  Cash inflows exceeded cash outflows. 
A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the work sheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet. 
D)  Cash inflows exceeded cash outflows.

Question 17

Closing entries are dated in the journal as of

Accepted Answer

A)  the date they are actually journalized, although they are generally prepared after the end of the accounting period 
B)  the last day of the accounting period, although they are actually journalized after the end of the accounting period 
C)  the first day of the accounting period, although they are actually journalized after the end of the accounting period 
D)  the first day of the subsequent accounting period 
A)  the date they are actually journalized, although they are generally prepared after the end of the accounting period 
B)  the last day of the accounting period, although they are actually journalized after the end of the accounting period 
C)  the first day of the accounting period, although they are actually journalized after the end of the accounting period 
D)  the first day of the subsequent accounting period

Question 18

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Accepted Answer

A) True 
 B)False

Question 19

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

Accepted Answer

A) True 
 B)False

Question 20

Balance Sheet accounts are not considered real accounts.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Explain the differences between a nonclassified balance sheet and a classified balance sheet.

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for Mackenzie Company: Prepare a classified balance sheet.

An indication that the work sheet columns are in balance and the work sheet is completed is

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the expense accounts at the end of the period.

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Which one of the fixed asset accounts listed below will not have a related contra asset account?

The classified balance sheet will have liabilities divided into the following subsections

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet for the year ended April 30, 2011, for Finnegan Co.: Prepare an income statement.

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. Determine total assets.

The income statement is prepared from:

In a computerized accounting system, a work sheet may not be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Notes receivable due in 350 days appear on the

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

The following is the adjusted trial balance for Sandeep Company. Prepare closing entries and the post closing trial balance.

The following are steps to the accounting cycle. Of the following, which step should be done first?

Which of the statements below indicates that a company earned a net income for the period?

Closing entries are dated in the journal as of

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

Balance Sheet accounts are not considered real accounts.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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