Question 1

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

Accepted Answer

A) True 
 B)False  True

Question 2

The balance sheet should be prepared

Accepted Answer

A)  before the income statement and the retained earnings statement 
B)  before the income statement and after the retained earnings statement 
C)  after the income statement and the retained earnings statement 
D)  after the income statement and before the retained earnings statement 
A)  before the income statement and the retained earnings statement 
B)  before the income statement and after the retained earnings statement 
C)  after the income statement and the retained earnings statement 
D)  after the income statement and before the retained earnings statement C

Question 3

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.
(a) What three accounts do you think should be relabeled for greater clarity?
(b) What adjustments might be necessary before an accurate set of financial statements could be prepared?

Accepted Answer

(a) The following items should be relabeled for greater clarity:
Billings Due from Others-Accounts Receivable
Amounts Owed to Others-Accounts Payable
Investment in Business-Capital Stock
(b) The following adjustments might be necessary before an accurate set of financial statements could be prepared:

Question 4

Prepaid Insurance is an example of a current asset.

Accepted Answer

A) True 
 B)False

Question 5

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Accepted Answer

A)  verify that the debits and credits are in balance 
B)  verify that all of the adjustments were posted in the correct accounts 
C)  verify that the net income (loss) is correct for the period 
D)  verify the correct flow of accounts into the financial statements 
A)  verify that the debits and credits are in balance 
B)  verify that all of the adjustments were posted in the correct accounts 
C)  verify that the net income (loss) is correct for the period 
D)  verify the correct flow of accounts into the financial statements

Question 6

The following are steps to the accounting cycle. Of the following, which step should be done first?

Accepted Answer

A)  Closing entries are journalized and posted to the ledger. 
B)  Transactions are posted to the ledger. 
C)  Adjusting entries are journalized and posted to the ledger. 
D)  Financial statements are prepared. 
A)  Closing entries are journalized and posted to the ledger. 
B)  Transactions are posted to the ledger. 
C)  Adjusting entries are journalized and posted to the ledger. 
D)  Financial statements are prepared.

Question 7

Net income appears on the work sheet in the

Accepted Answer

A)  debit column of the Balance Sheet columns 
B)  debit column of the Adjustments columns 
C)  debit column of the Income Statement columns 
D)  credit column of the Income Statement columns 
A)  debit column of the Balance Sheet columns 
B)  debit column of the Adjustments columns 
C)  debit column of the Income Statement columns 
D)  credit column of the Income Statement columns

Question 8

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

Accepted Answer

A)  in the Income Statement columns of the work sheet 
B)  in the statement of cash flows 
C)  in the general ledger 
D)  in the Adjustments columns of the work sheet 
A)  in the Income Statement columns of the work sheet 
B)  in the statement of cash flows 
C)  in the general ledger 
D)  in the Adjustments columns of the work sheet

Question 9

After analyzing transactions, the next step would be to post the transactions in the ledger.

Accepted Answer

A) True 
 B)False

Question 10

Balance Sheet accounts are considered real accounts.

Accepted Answer

A) True 
 B)False

Question 11

Accumulated Depreciation is a permanent account.

Accepted Answer

A) True 
 B)False

Question 12

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Utilize these adjusted values to prepare the closing entries for Erik Martin Company.

Accepted Answer

The answer of The following adjusted trial balance is the...

Question 13

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

On January 1, 2011, 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, 2011, Crystal Pool Service Company reported a net income of $72,300. Prepare a retained earnings statement for the year ended December 31, 2011.

Accepted Answer

The answer of On January 1, 2011, the retained earnings...

Question 15

Selected ledger accounts appear below for Fulton Surveying Services for 2011.

Accepted Answer

@#IMG-DLM& Prepare a

Question 16

The natural business year

Accepted Answer

A)  is a fiscal year that ends when business activities are at its lowest point. 
B)  is a calendar year that ends when business activities are at its lowest point. 
C)  is a fiscal year that ends when business activities are at its highest point. 
D)  is a calendar year that ends when business activities are at its highest point. 
A)  is a fiscal year that ends when business activities are at its lowest point. 
B)  is a calendar year that ends when business activities are at its lowest point. 
C)  is a fiscal year that ends when business activities are at its highest point. 
D)  is a calendar year that ends when business activities are at its highest point.

Question 17

The income summary account is closed to the retained earnings account.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)  Salaries Expense 
B)  Fees Earned 
C)  Unearned Rent 
D)  Depreciation Expense 
A)  Salaries Expense 
B)  Fees Earned 
C)  Unearned Rent 
D)  Depreciation Expense

Question 19

Accepted Answer

1)
Journal Entries:

Question 20

Accumulated depreciation appears on the

Accepted Answer

A)  balance sheet in the current assets section 
B)  balance sheet in the property, plant and equipment section 
C)  balance sheet in the long-term liabilities section 
D)  income statement as an operating expense 
A)  balance sheet in the current assets section 
B)  balance sheet in the property, plant and equipment section 
C)  balance sheet in the long-term liabilities section 
D)  income statement as an operating expense

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

The balance sheet should be prepared

Prepaid Insurance is an example of a current asset.

Once the adjusting entries are posted, the adjusted trial balance is prepared to

The following are steps to the accounting cycle. Of the following, which step should be done first?

Net income appears on the work sheet in the

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

After analyzing transactions, the next step would be to post the transactions in the ledger.

Balance Sheet accounts are considered real accounts.

Accumulated Depreciation is a permanent account.

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Utilize these adjusted values to prepare the closing entries for Erik Martin Company.

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Selected ledger accounts appear below for Fulton Surveying Services for 2011.

The natural business year

The income summary account is closed to the retained earnings account.

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Accumulated depreciation appears on the

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

Exam 4: Completing the Accounting Cycle

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

The balance sheet should be prepared

Prepaid Insurance is an example of a current asset.

Once the adjusting entries are posted, the adjusted trial balance is prepared to

The following are steps to the accounting cycle. Of the following, which step should be done first?

Net income appears on the work sheet in the

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

After analyzing transactions, the next step would be to post the transactions in the ledger.

Balance Sheet accounts are considered real accounts.

Accumulated Depreciation is a permanent account.

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Utilize these adjusted values to prepare the closing entries for Erik Martin Company.

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Selected ledger accounts appear below for Fulton Surveying Services for 2011.

The natural business year

The income summary account is closed to the retained earnings account.

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Accumulated depreciation appears on the

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