Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Accepted Answer

A) True 
 B)False

Question 4

Prepare an income statement and a statement of owner's equity, for the month ended August 31, 2014, from the following T-Accounts of Marley Company.

Accepted Answer

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Question 5

List and describe the purpose of the four closing entries.
1. Close revenues to income summary.
2. Close expenses to income summary.
3. Close income summary to capital account.
4. Close drawing account to capital account.

Accepted Answer

At the beginning of the next period, tem

Question 6

The fiscal year selected by companies

Accepted Answer

A)  is the same as the calendar year 
B)  begins with the first day of the month and ends on the last day of the twelfth month 
C)  must always begin on January 1 
D)  will change each year 
A)  is the same as the calendar year 
B)  begins with the first day of the month and ends on the last day of the twelfth month 
C)  must always begin on January 1 
D)  will change each year

Question 7

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are $38,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Accepted Answer

A)  $6,020 net income 
B)  $38,755 net loss 
C)  $6,020 net loss 
D)  $32,735 net income 
A)  $6,020 net income 
B)  $38,755 net loss 
C)  $6,020 net loss 
D)  $32,735 net income

Question 8

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

Accepted Answer

A)  neither net income or loss can be calculated because it is found on the income statement 
B)  the company has a net loss of $3,415 for the period 
C)  the company has a net income of $3,415 for the period 
D)  The amounts are out of balance and need to be corrected 
A)  neither net income or loss can be calculated because it is found on the income statement 
B)  the company has a net loss of $3,415 for the period 
C)  the company has a net income of $3,415 for the period 
D)  The amounts are out of balance and need to be corrected

Question 9

The income summary account is closed to the owner's capital account.

Accepted Answer

A) True 
 B)False

Question 10

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Accepted Answer

A)  increase a liability account 
B)  decrease an asset account 
C)  decrease a revenue account 
D)  decrease a liability account 
A)  increase a liability account 
B)  decrease an asset account 
C)  decrease a revenue account 
D)  decrease a liability account

Question 11

Which of the following accounts will be closed to the Capital account at the end of the fiscal year?

Accepted Answer

A)  Rent Expense 
B)  Fees Earned 
C)  Income Summary 
D)  Depreciation Expense 
A)  Rent Expense 
B)  Fees Earned 
C)  Income Summary 
D)  Depreciation Expense

Question 12

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

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Question 13

Morgan Olsen owns and operates Crystal Pool Service Company. On January 1, 2014, Morgan Olsen, Capital had a balance of $252,000. During the year Morgan invested an additional $32,000 and withdrew $52,400. For the year ended December 31, 2014 Crystal Pool Service Company reported a net income of $73,200. Prepare a Statement of Owner's Equity for the year ended December 31, 2014.

Accepted Answer

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Question 14

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 15

The balances of the capital accounts from the Adjusted Trial Balance of the work sheet are extended to the Statement of Owner's Equity columns.

Accepted Answer

A) True 
 B)False

Question 16

A post-closing trial balance should be prepared before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 17

The following are all the steps in the accounting cycle. List them in the order in which they should be done.
- Closing entries are journalized and posted to the ledger.
- An unadjusted trial balance is prepared.
- An optional end-of-period spreadsheet (work sheet) is prepared.
- A post-closing trial balance is prepared.
- Adjusting entries are journalized and posted to the ledger.
- Transactions are analyzed and recorded in the journal.
- Adjustment data are assembled and analyzed.
- Financial statements are prepared.
- An adjusted trial balance is prepared.
- Transactions are posted to the ledger.

Accepted Answer

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Question 18

Match between columns
                        Premises: Prepaid Insurance
Supplies
Accounts Payable
Prepaid Advertising
Unearned Fees
Advertising Expense
Supplies Expense
Fees Earned

Accepted Answer

The Answer of current liability and expense and current asset is...

Question 19

All companies must use a calendar year as their fiscal year.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

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

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

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Prepare an income statement and a statement of owner's equity, for the month ended August 31, 2014, from the following T-Accounts of Marley Company.

List and describe the purpose of the four closing entries. 1. Close revenues to income summary. 2. Close expenses to income summary. 3. Close income summary to capital account. 4. Close drawing account to capital account.

The fiscal year selected by companies

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are $38,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

The income summary account is closed to the owner's capital account.

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Which of the following accounts will be closed to the Capital account at the end of the fiscal year?

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.

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

The balances of the capital accounts from the Adjusted Trial Balance of the work sheet are extended to the Statement of Owner's Equity columns.

A post-closing trial balance should be prepared before the financial statements are prepared.

All companies must use a calendar year as their fiscal year.

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

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

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

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

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Prepare an income statement and a statement of owner's equity, for the month ended August 31, 2014, from the following T-Accounts of Marley Company.

List and describe the purpose of the four closing entries. 1. Close revenues to income summary. 2. Close expenses to income summary. 3. Close income summary to capital account. 4. Close drawing account to capital account.

The fiscal year selected by companies

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are $38,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

The income summary account is closed to the owner's capital account.

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Which of the following accounts will be closed to the Capital account at the end of the fiscal year?

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.

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

The balances of the capital accounts from the Adjusted Trial Balance of the work sheet are extended to the Statement of Owner's Equity columns.

A post-closing trial balance should be prepared before the financial statements are prepared.

All companies must use a calendar year as their fiscal year.

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

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