Question 1

An adjusted trial balance

Accepted Answer

A) is prepared after the financial statements are completed. 
B) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 
C) is a required financial statement under international financial reporting standards. 
D) cannot be used to prepare financial statements. 
A) is prepared after the financial statements are completed. 
B) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 
C) is a required financial statement under international financial reporting standards. 
D) cannot be used to prepare financial statements.

Question 2

Revenue and expense accounts often are called temporary (nominal)accounts because their balances are closed out at the end of the accounting year.

Accepted Answer

A) True 
 B)False

Question 3

At the end of 20D,the following data were taken from the accounts of Timberline Company: The 20D closing entries would include which of the following?

Accepted Answer

A) $10,000 net credit to retained earnings. 
B) $10,000 net debit to retained earnings. 
C) $190,000 debit to retained earnings. 
D) $180,000 credit to retained earnings. 
A) $10,000 net credit to retained earnings. 
B) $10,000 net debit to retained earnings. 
C) $190,000 debit to retained earnings. 
D) $180,000 credit to retained earnings.

Question 4

The following income statement was reported for Cotrell Inc.for the first year of operations ending December 31,20B,reported in thousands of dollars:
Calculate the following:
(a)net profit margin
(b)earnings per share if there are 100,000 shares outstanding

Accepted Answer

(a)7.1%,(calculated by dividin

Question 5

A post-closing trial balance will show

Accepted Answer

A) only statement of financial position accounts. 
B) zero balances for all accounts. 
C) zero balances for statement of financial position accounts. 
D) only income statement accounts. 
A) only statement of financial position accounts. 
B) zero balances for all accounts. 
C) zero balances for statement of financial position accounts. 
D) only income statement accounts.

Question 6

Select the statement that best describes the primary purpose of closing entries.

Accepted Answer

A) To facilitate adjusting entries. 
B) To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period. 
C) To complete the recording of various transactions which are begun in one period and concluded in a later period. 
D) To determine the amount of profit or loss for the period. 
A) To facilitate adjusting entries. 
B) To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period. 
C) To complete the recording of various transactions which are begun in one period and concluded in a later period. 
D) To determine the amount of profit or loss for the period.

Question 7

The net profit margin ratio (Profit F1F1F1S1F1F1F10 Net Sales)measures how much profit is earned as a percentage of revenues generated during the period.

Accepted Answer

A) True 
 B)False

An adjusted trial balance

Revenue and expense accounts often are called temporary (nominal)accounts because their balances are closed out at the end of the accounting year.

At the end of 20D,the following data were taken from the accounts of Timberline Company: The 20D closing entries would include which of the following?

The following income statement was reported for Cotrell Inc.for the first year of operations ending December 31,20B,reported in thousands of dollars: Calculate the following: (a)net profit margin (b)earnings per share if there are 100,000 shares outstanding

A post-closing trial balance will show

Select the statement that best describes the primary purpose of closing entries.

The net profit margin ratio (Profit  Net Sales)measures how much profit is earned as a percentage of revenues generated during the period.

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Communicating and Interpreting Accounting Information

Reporting and Interpreting Sales Revenue, receivables, and Cash

Reporting and Interpreting Cost of Goods Sold and Inventory

Reporting and Interpreting Property, plant, and Equipment; Intangibles; and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bond Securities

Reporting and Interpreting Stockholders Equity

Statement of Cash Flows

Analyzing Financial Statements

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Exam 4: Adjustments,financial Statements,and the Quality of Earnings

An adjusted trial balance

Revenue and expense accounts often are called temporary (nominal)accounts because their balances are closed out at the end of the accounting year.

At the end of 20D,the following data were taken from the accounts of Timberline Company: The 20D closing entries would include which of the following?

The following income statement was reported for Cotrell Inc.for the first year of operations ending December 31,20B,reported in thousands of dollars: Calculate the following: (a)net profit margin (b)earnings per share if there are 100,000 shares outstanding

A post-closing trial balance will show

Select the statement that best describes the primary purpose of closing entries.

The net profit margin ratio (Profit  Net Sales)measures how much profit is earned as a percentage of revenues generated during the period.

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Communicating and Interpreting Accounting Information

Reporting and Interpreting Sales Revenue, receivables, and Cash

Reporting and Interpreting Cost of Goods Sold and Inventory

Reporting and Interpreting Property, plant, and Equipment; Intangibles; and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bond Securities

Reporting and Interpreting Stockholders Equity

Statement of Cash Flows

Analyzing Financial Statements

Filters