Question 1

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

Accepted Answer

A) True 
 B)False  False

Question 2

The following is the adjusted trial balance for Nadia Company.
   Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

Accepted Answer

@#IMG-DLM&_TB2085_00_TB2085_00

Question 3

After the accounts have been adjusted at January 31, 2014, the end of the fiscal year, the following balances are taken from the ledger of Taylor Pool Service Company:
  Journalize the four entries required to close the accounts

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 4

Use the following information in the adjusted trial balance for Stockton Company to answer the following questions.   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 5

After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Accepted Answer

A) True 
 B)False

Question 6

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Accepted Answer

A) True 
 B)False

Question 7

Real accounts are permanent accounts.

Accepted Answer

A) True 
 B)False

Question 8

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 9

The Income Statement will include the following accounts

Accepted Answer

A)  Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed last 
B)  Revenues less Expenses (ordered smallest to largest amounts) with Miscellaneous Expense listed last 
C)  Revenues less Expenses (ordered in alphabetical order) 
D)  Revenues less Expenses (order is not important) 
A)  Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed last 
B)  Revenues less Expenses (ordered smallest to largest amounts) with Miscellaneous Expense listed last 
C)  Revenues less Expenses (ordered in alphabetical order) 
D)  Revenues less Expenses (order is not important)

Question 10

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 11

Use the following worksheet to answer the following questions.   The journal entry to close revenues would be:

Accepted Answer

A)  debit Income Summary $155,000, credit Fees Earned $155,000 
B)  debit C. Finley, Capital $155,000, credit Fees Earned $155,000 
C)  debit Fees Earned $155,000; credit Income Summary $155,000 
D)  credit Fees Earned $155,000; credit C. Finley, Capital $155,000 
A)  debit Income Summary $155,000, credit Fees Earned $155,000 
B)  debit C. Finley, Capital $155,000, credit Fees Earned $155,000 
C)  debit Fees Earned $155,000; credit Income Summary $155,000 
D)  credit Fees Earned $155,000; credit C. Finley, Capital $155,000

Question 12

A post-closing trial balance contains only asset and liability accounts.

Accepted Answer

A) True 
 B)False

Question 13

Which one of the steps below is not aided by the preparation of the work sheet?

Accepted Answer

A)  preparing the adjusted trial balance 
B)  posting to the general ledger 
C)  preparing the financial statements 
D)  preparing the closing entries 
A)  preparing the adjusted trial balance 
B)  posting to the general ledger 
C)  preparing the financial statements 
D)  preparing the closing entries

Question 14

Which of the items below does not appear on the work sheet?

Accepted Answer

A)  adjusting entries 
B)  the unadjusted trial balance 
C)  closing entries 
D)  the drawing account 
A)  adjusting entries 
B)  the unadjusted trial balance 
C)  closing entries 
D)  the drawing account

Question 15

Office Equipment is an example of a current asset account.

Accepted Answer

A) True 
 B)False

Question 16

The accounting cycle begins with preparing an unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 17

There is really benefit in preparing financial statements in any particular order.

Accepted Answer

A) True 
 B)False

Question 18

You have just accepted your first job out of college, which requires you to evaluate loan requests at Beach Front National Bank. The first loan request you receive is from Surfer Dude Enterprises, a small proprietorship. Marty Monroe, the owner, is requesting $75,000 and brings you the following trial balance (or Statement of Accounts) for his first year of operations ended December 31, 2010.
Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared?

Accepted Answer

The following adjustments migh

Question 19

On the work sheet, the capital and drawing account balances are extended to the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 20

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.

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

The following is the adjusted trial balance for Nadia Company. Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

After the accounts have been adjusted at January 31, 2014, the end of the fiscal year, the following balances are taken from the ledger of Taylor Pool Service Company: Journalize the four entries required to close the accounts

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

After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Real accounts are permanent accounts.

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

The Income Statement will include the following accounts

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

Use the following worksheet to answer the following questions. The journal entry to close revenues would be:

A post-closing trial balance contains only asset and liability accounts.

Which one of the steps below is not aided by the preparation of the work sheet?

Which of the items below does not appear on the work sheet?

Office Equipment is an example of a current asset account.

The accounting cycle begins with preparing an unadjusted trial balance.

There is really benefit in preparing financial statements in any particular order.

On the work sheet, the capital and drawing account balances are extended to the Balance Sheet columns.

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Completing the Accounting Cycle

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

The following is the adjusted trial balance for Nadia Company. Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

After the accounts have been adjusted at January 31, 2014, the end of the fiscal year, the following balances are taken from the ledger of Taylor Pool Service Company: Journalize the four entries required to close the accounts

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

After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Real accounts are permanent accounts.

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

The Income Statement will include the following accounts

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

Use the following worksheet to answer the following questions. The journal entry to close revenues would be:

A post-closing trial balance contains only asset and liability accounts.

Which one of the steps below is not aided by the preparation of the work sheet?

Which of the items below does not appear on the work sheet?

Office Equipment is an example of a current asset account.

The accounting cycle begins with preparing an unadjusted trial balance.

There is really benefit in preparing financial statements in any particular order.

On the work sheet, the capital and drawing account balances are extended to the Balance Sheet columns.

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters