Question 1

The accounting cycle begins with preparing an unadjusted trial balance.

Accepted Answer

A) True 
 B)False

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

In a computerized accounting system,a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Accepted Answer

A) True 
 B)False

Question 4

The post-closing trial balance will generally have fewer accounts than the trial balance.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Cash,Accounts Payable,and Capital Stock are real accounts and do get closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 8

Which item would appear in the Income Statement columns of the work sheet?

Accepted Answer

A) Equipment 
B) Unearned Fees 
C) Prepaid Expense 
D) Net Loss 
A) Equipment 
B) Unearned Fees 
C) Prepaid Expense 
D) Net Loss

Question 9

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 10

The dividends account is closed to the income summary account.

Accepted Answer

A) True 
 B)False

Question 11

On January 1,2014,the retained earnings account of Crystal Pool Service Company had a balance of $252,000.During the year,the company issued an additional $20,000 of capital stock and paid $52,400 in dividends.For the year ended December 31,2014,Crystal Pool Service Company reported a net income of $73,200.Prepare a retained earnings statement for the year ended December 31,2014.

Accepted Answer

The answer of On January 1,2014,the retained earnings account of...

Question 12

An indication that the work sheet columns are in balance and the work sheet is completed is

Accepted Answer

A) the word "Total" is written at the bottom of each pair of columns 
B) each pair of columns is double underlined 
C) each pair of columns has the totals circled 
D) the final figures are written in ink 
A) the word "Total" is written at the bottom of each pair of columns 
B) each pair of columns is double underlined 
C) each pair of columns has the totals circled 
D) the final figures are written in ink

Question 13

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 14

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 15

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 16

Cross-referencing is useful in assuring that the debits and credits are in balance.

Accepted Answer

A) True 
 B)False

Question 17

The income statement will include

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 18

After net income or loss is entered on the work sheet,the debit column total must equal the credit column total of the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 19

Tracy Roberts,the sole stockholder of Surfer Dude Supplies,is requesting a $75,000 loan from the bank where you work as a loan officer.He brings to you the following trial balance (or statement of accounts)as of the end of his first year of operations.
What adjustments might be necessary before an accurate set of financial statements could be prepared?

Accepted Answer

The following adjustments migh

Question 20

The most important output of the accounting cycle is the financial statements.

Accepted Answer

A) True 
 B)False

The accounting cycle begins with preparing an unadjusted trial balance.

In a computerized accounting system,a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

The post-closing trial balance will generally have fewer accounts than the trial balance.

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

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

Cash,Accounts Payable,and Capital Stock are real accounts and do get closed at the end of the period.

Which item would appear in the Income Statement columns of the work sheet?

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

The dividends account is closed to the income summary account.

An indication that the work sheet columns are in balance and the work sheet is completed is

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

The fiscal year selected by companies

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Cross-referencing is useful in assuring that the debits and credits are in balance.

The income statement will include

After net income or loss is entered on the work sheet,the debit column total must equal the credit column total of the Balance Sheet columns.

The most important output of the accounting cycle is the financial statements.

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

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Exam 4: Completing the Accounting Cycle

The accounting cycle begins with preparing an unadjusted trial balance.

In a computerized accounting system,a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

The post-closing trial balance will generally have fewer accounts than the trial balance.

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

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

Cash,Accounts Payable,and Capital Stock are real accounts and do get closed at the end of the period.

Which item would appear in the Income Statement columns of the work sheet?

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

The dividends account is closed to the income summary account.

An indication that the work sheet columns are in balance and the work sheet is completed is

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

The fiscal year selected by companies

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Cross-referencing is useful in assuring that the debits and credits are in balance.

The income statement will include

After net income or loss is entered on the work sheet,the debit column total must equal the credit column total of the Balance Sheet columns.

The most important output of the accounting cycle is the financial statements.

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

Filters