Question 1

Current liabilities are those liabilities that

Accepted Answer

A)  will be paid in less than one year 
B)  are due to be paid in 5 to 10 years 
C)  are due to be paid in more than one year 
D)  are owed to the stockholders and will never be paid 
A)  will be paid in less than one year 
B)  are due to be paid in 5 to 10 years 
C)  are due to be paid in more than one year 
D)  are owed to the stockholders and will never be paid

Question 2

Hakik Enterprises offers rug cleaning services to business clients. Below is the work sheet containing the trial balance for the month ended July 31, 2012.
  
 Enter the adjustments in the work sheet based on the data provided below. Then enter the adjusted account balances in the Adjusted Trial Balance columns.
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.
b) Accrued wages, $2.
c) Unused supplies on hand, $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

Accepted Answer

The answer of Hakik Enterprises offers rug cleaning services to...

Question 3

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

Accepted Answer

A) True 
 B)False

Question 4

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Accepted Answer

A)  Post-closing, unadjusted, adjusted 
B)  Unadjusted, post-closing, adjusted 
C)  Unadjusted, adjusted, post-closing 
D)  Post-closing, adjusted, unadjusted 
A)  Post-closing, unadjusted, adjusted 
B)  Unadjusted, post-closing, adjusted 
C)  Unadjusted, adjusted, post-closing 
D)  Post-closing, adjusted, unadjusted

Question 5

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:   Net income for the period is

Accepted Answer

A)  $3,200 
B)  $12,100 
C)  $17,400 
D)  $8,900 
A)  $3,200 
B)  $12,100 
C)  $17,400 
D)  $8,900

Question 6

The unequal totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

Accepted Answer

A)  indicates the amount of net income or loss 
B)  indicates there is an error on the work sheet 
C)  is not unusual when preparing the work sheet 
D)  is the net difference between revenue, expenses, and dividends 
A)  indicates the amount of net income or loss 
B)  indicates there is an error on the work sheet 
C)  is not unusual when preparing the work sheet 
D)  is the net difference between revenue, expenses, and dividends

Question 7

When a work sheet is complete, the adjustment columns should have

Accepted Answer

A)  total credits greater than total debits if a net income was earned 
B)  total debits greater than total credits if a net loss was incurred 
C)  total debits greater than total credits if a net income was earned 
D)  total debits equal total credits 
A)  total credits greater than total debits if a net income was earned 
B)  total debits greater than total credits if a net loss was incurred 
C)  total debits greater than total credits if a net income was earned 
D)  total debits equal total credits

Question 8

The last step of the accounting cycle is to prepare a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  $1,900 
B)  $6,200 
C)  $4,300 
D)  $20,240 
A)  $1,900 
B)  $6,200 
C)  $4,300 
D)  $20,240

Question 10

All income statement accounts will be closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not an essential part of the accounting records?

Accepted Answer

A)  journal 
B)  ledger 
C)  chart of accounts 
D)  work sheet 
A)  journal 
B)  ledger 
C)  chart of accounts 
D)  work sheet

Question 12

Accrued expenses are ordinarily listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 13

Since the adjustments are entered on the work sheet, it is  not necessary to record them in the journal or post them to the ledger.

Accepted Answer

A) True 
 B)False

Question 14

The retained earnings statement begins with the beginning balance followed by

Accepted Answer

A)  net income (loss) and dividends 
B)  net income (loss) and issuances of capital stock 
C)  issuances of capital stock and dividends 
D)  issuances of capital stock, net income (loss), and dividends 
A)  net income (loss) and dividends 
B)  net income (loss) and issuances of capital stock 
C)  issuances of capital stock and dividends 
D)  issuances of capital stock, net income (loss), and dividends

Question 15

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

Accepted Answer

A)  $23,030 
B)  $9,330 
C)  $21,930 
D)  $8,630 
A)  $23,030 
B)  $9,330 
C)  $21,930 
D)  $8,630

Question 16

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs:
   Journalize the entries to close the appropriate accounts.

Accepted Answer

The answer of After all adjustments have been made, but...

Question 17

After net income is entered on the work sheet, the Balance Sheet Debit and Credit columns must

Accepted Answer

A)  be the same amount as the total amount of the Income Statement Debit and Credit columns 
B)  equal each other 
C)  be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns 
D)  not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet 
A)  be the same amount as the total amount of the Income Statement Debit and Credit columns 
B)  equal each other 
C)  be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns 
D)  not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet

Question 18

A work sheet heading is dated for a period of time.

Accepted Answer

A) True 
 B)False

Question 19

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

Accepted Answer

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

Question 20

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Current liabilities are those liabilities that

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

The accounting cycle requires three trial balances be done. In what order should they be prepared?

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Net income for the period is

The unequal totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

When a work sheet is complete, the adjustment columns should have

The last step of the accounting cycle is to prepare a post-closing trial balance.

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

All income statement accounts will be closed at the end of the period.

Which of the following is not an essential part of the accounting records?

Accrued expenses are ordinarily listed on the balance sheet as current assets.

Since the adjustments are entered on the work sheet, it is not necessary to record them in the journal or post them to the ledger.

The retained earnings statement begins with the beginning balance followed by

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

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: Journalize the entries to close the appropriate accounts.

After net income is entered on the work sheet, the Balance Sheet Debit and Credit columns must

A work sheet heading is dated for a period of time.

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

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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