Question 1

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

Accepted Answer

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

Question 2

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2010 for Mackenzie Company:
   Prepare a classified balance sheet.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 3

The classified Balance Sheet will divide its Liabilities Section as 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 4

Prepare closing entries from the following work sheet.
Lakendra Enterprises
Worksheet 
For the Year Ended December 31, 2010

Accepted Answer

Journal
 @#IMG-DLM&_

Question 5

Financial statements should be prepared before the closing entries are journalized and posted.

Accepted Answer

A) True 
 B)False

Question 6

The income summary account is also known as the clearing account.

Accepted Answer

A) True 
 B)False

Question 7

The trial balance may be listed on the work sheet instead of being prepared separately.

Accepted Answer

A) True 
 B)False

Question 8

If working papers are not considered part of the formal accounting records, then why are they used?

Accepted Answer

Working papers are tools used

Question 9

Use the following worksheet to answer the following questions.   Based on the preceding trial balance, the entry to close income summary would be:

Accepted Answer

A)  debit C. Finley, Capital $50,000; credit Income Summary $50,000 
B)  debit Income Summary $155,000; credit C. Finley, Capital $155,000 
C)  debit Income Summary $50,000, credit C. Finley, Capital $50,000 
D)  debit C. Finley, Capital $9,000; credit Income Summary $9,000 
A)  debit C. Finley, Capital $50,000; credit Income Summary $50,000 
B)  debit Income Summary $155,000; credit C. Finley, Capital $155,000 
C)  debit Income Summary $50,000, credit C. Finley, Capital $50,000 
D)  debit C. Finley, Capital $9,000; credit Income Summary $9,000

Question 10

After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Accepted Answer

A) True 
 B)False

Question 11

Hakik Enterprises offers rug cleaning services to business clients. Below are the adjustments data for the year ended July 31, 2010. REQUIRED: Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.
Adjustments:
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Please 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

@#IMG-DLM&_TB2085_00

Question 12

Marcus Enterprises was started by Damien Marcus in 2010. During 2010, Damien Marcus invested $8,000 in the business. Based on the following worksheet, prepare an income statement, statement of owner's equity, and balance sheet for Marcus Enterprises for the year ended December 31, 2010.
Marcus Enterprises
Worksheet
For the Year Ended December 31, 2010

Accepted Answer

Marcus Enterprises
Income Statement
For

Question 13

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Accepted Answer

A) True 
 B)False

Question 14

You evaluate loan requests as part of your job at Beach Front National Bank. One loan request you received is from Surfer Dude Supplies, a small proprietorship. Tracy Roberts, the owner, is requesting $75,000 and brings you a trial balance (or Statement of Accounts) for his first year of operations ended December 31, 2010.
REQUIRED: While you are willing to work with Tracy, how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?

Accepted Answer

A set of financial statements provides u

Question 15

Prepaid Insurance is an example of a current asset.

Accepted Answer

A) True 
 B)False

Question 16

What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?

Accepted Answer

A)  The Adjusted Trial Balance will show the net income (loss) as an additional account. 
B)  Unlike the Adjusted Trial Balance, the Unadjusted Trial Balance will continue with the end-of-period processing even if it is not in balance. 
C)  The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts. 
D)  The Adjusted Trial Balance will be used to record the adjustments for the period. 
A)  The Adjusted Trial Balance will show the net income (loss) as an additional account. 
B)  Unlike the Adjusted Trial Balance, the Unadjusted Trial Balance will continue with the end-of-period processing even if it is not in balance. 
C)  The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts. 
D)  The Adjusted Trial Balance will be used to record the adjustments for the period.

Question 17

The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $630,430 and a credit total of $614,210. This is before the amount for net income or net loss has been included. In preparing the income statement from work sheet, what is the amount of net income or net loss?

Accepted Answer

A net inco

Question 18

Round-tripping is when

Accepted Answer

A)  a selling company sells to a customer company with huge discounts. 
B)  a selling company pretends to sell to a fictitious company with the intent of inflating revenues 
C)  a selling company lends money to a customer company to increase assets. 
D)  a selling company lends money to a customer company to be used to purchase goods from the selling company. 
A)  a selling company sells to a customer company with huge discounts. 
B)  a selling company pretends to sell to a fictitious company with the intent of inflating revenues 
C)  a selling company lends money to a customer company to increase assets. 
D)  a selling company lends money to a customer company to be used to purchase goods from the selling company.

Question 19

The income statement is prepared from:

Accepted Answer

A)  the adjusted trial balance. 
B)  the income statement 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 income statement columns of the work sheet. 
A)  the adjusted trial balance. 
B)  the income statement 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 income statement columns of the work sheet.

Question 20

Short-term 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 owner 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 owner and will never be paid

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2010 for Mackenzie Company: Prepare a classified balance sheet.

The classified Balance Sheet will divide its Liabilities Section as the following subsections

Prepare closing entries from the following work sheet. Lakendra Enterprises Worksheet For the Year Ended December 31, 2010

Financial statements should be prepared before the closing entries are journalized and posted.

The income summary account is also known as the clearing account.

The trial balance may be listed on the work sheet instead of being prepared separately.

If working papers are not considered part of the formal accounting records, then why are they used?

Use the following worksheet to answer the following questions. Based on the preceding trial balance, the entry to close income summary would be:

After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Prepaid Insurance is an example of a current asset.

What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?

Round-tripping is when

The income statement is prepared from:

Short-term liabilities are those liabilities that

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

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2010 for Mackenzie Company: Prepare a classified balance sheet.

The classified Balance Sheet will divide its Liabilities Section as the following subsections

Prepare closing entries from the following work sheet. Lakendra Enterprises Worksheet For the Year Ended December 31, 2010

Financial statements should be prepared before the closing entries are journalized and posted.

The income summary account is also known as the clearing account.

The trial balance may be listed on the work sheet instead of being prepared separately.

If working papers are not considered part of the formal accounting records, then why are they used?

Use the following worksheet to answer the following questions. Based on the preceding trial balance, the entry to close income summary would be:

After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Prepaid Insurance is an example of a current asset.

What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?

Round-tripping is when

The income statement is prepared from:

Short-term liabilities are those liabilities that

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