Question 1

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 2

A work sheet includes columns for

Accepted Answer

A)  adjusting entries 
B)  closing entries 
C)  reversing entries 
D)  adjusting and closing entries 
A)  adjusting entries 
B)  closing entries 
C)  reversing entries 
D)  adjusting and closing entries

Question 3

Office Equipment is an example of a current asset account.

Accepted Answer

A) True 
 B)False

Question 4

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows:
   Prepare the entry required to close the revenue accounts at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings. It's...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the accounts below would be closed by posting a debit to the account?

Accepted Answer

A)  Unearned Revenue 
B)  Fees Earned 
C)  Dividends 
D)  Miscellaneous Expense 
A)  Unearned Revenue 
B)  Fees Earned 
C)  Dividends 
D)  Miscellaneous Expense

Question 8

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 9

In the accounting cycle, the last step is

Accepted Answer

A)  preparing the financial statements 
B)  journalizing and posting the adjusting entries 
C)  preparing a post-closing trial balance 
D)  journalizing and posting the closing entries 
A)  preparing the financial statements 
B)  journalizing and posting the adjusting entries 
C)  preparing a post-closing trial balance 
D)  journalizing and posting the closing entries

Question 10

Net income is shown on the work sheet in the Income Statement Debit column and the Balance Sheet Credit column.

Accepted Answer

A) True 
 B)False

Question 11

The Income Statement columns in the work sheet show that debits total $55,800 and credits total $62,705. What does this information mean to the accountant?

Accepted Answer

A)  Net income is equal to $6,905. 
B)  Net loss is equal to $6,905. 
C)  The accounts are out of balance, indicating an error has been made. 
D)  The accounts have not been updated. 
A)  Net income is equal to $6,905. 
B)  Net loss is equal to $6,905. 
C)  The accounts are out of balance, indicating an error has been made. 
D)  The accounts have not been updated.

Question 12

When accounts do appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Current 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 stockholders 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 stockholders and will never be paid

Question 16

The accounting cycle begins with preparing an unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 17

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.

Question 18

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 19

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

Accepted Answer

A)  is the amount of net income or loss 
B)  indicates there is an error on the work sheet 
C)  is not unusual when preparing the work sheet 
D)  is the net difference between revenue, expenses, and dividends 
A)  is the amount of net income or loss 
B)  indicates there is an error on the work sheet 
C)  is not unusual when preparing the work sheet 
D)  is the net difference between revenue, expenses, and dividends

Question 20

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

Accepted Answer

Working papers are tools used

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

A work sheet includes columns for

Office Equipment is an example of a current asset account.

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the revenue accounts at the end of the period.

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

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

Which of the accounts below would be closed by posting a debit to the account?

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

In the accounting cycle, the last step is

Net income is shown on the work sheet in the Income Statement Debit column and the Balance Sheet Credit column.

The Income Statement columns in the work sheet show that debits total $55,800 and credits total $62,705. What does this information mean to the accountant?

When accounts do appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

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

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

Current liabilities are those liabilities that

The accounting cycle begins with preparing an unadjusted trial balance.

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

The income statement will include

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

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

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

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

A work sheet includes columns for

Office Equipment is an example of a current asset account.

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the revenue accounts at the end of the period.

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

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

Which of the accounts below would be closed by posting a debit to the account?

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

In the accounting cycle, the last step is

Net income is shown on the work sheet in the Income Statement Debit column and the Balance Sheet Credit column.

The Income Statement columns in the work sheet show that debits total $55,800 and credits total $62,705. What does this information mean to the accountant?

When accounts do appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

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

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

Current liabilities are those liabilities that

The accounting cycle begins with preparing an unadjusted trial balance.

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

The income statement will include

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

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

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