Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The income summary account is also called

Accepted Answer

A)  the imprest account 
B)  the clearing account 
C)  the adjustments account 
D)  the helpful account 
A)  the imprest account 
B)  the clearing account 
C)  the adjustments account 
D)  the helpful account

Question 3

Which of the items below 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 4

The classified Balance Sheet will subsection the assets section as follows

Accepted Answer

A)  Current Assets and Other Assets 
B)  Current Assets and Property, Plant, and Equipment 
C)  Current Assets and Short-Term Assets 
D)  Other Assets and Property, Plant and Equipment 
A)  Current Assets and Other Assets 
B)  Current Assets and Property, Plant, and Equipment 
C)  Current Assets and Short-Term Assets 
D)  Other Assets and Property, Plant and Equipment

Question 5

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year end.   Net income for the period is

Accepted Answer

A)  $13,000 
B)  $33,500 
C)  $15,000 
D)  $18,500 
A)  $13,000 
B)  $33,500 
C)  $15,000 
D)  $18,500

Question 6

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

Accepted Answer

A)  $6,400 net income 
B)  $6,400 net loss 
C)  $83,900 net income 
D)  $77,500 net loss 
A)  $6,400 net income 
B)  $6,400 net loss 
C)  $83,900 net income 
D)  $77,500 net loss

Question 7

The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet.

Accepted Answer

A) True 
 B)False

Question 8

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 9

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not true about closing entries?

Accepted Answer

A)  There are four closing entries that update the owner's equity account. 
B)  After the second closing entry, the income summary account is equal to the net income or (loss) for the period. 
C)  All real accounts are closed at the end of the period. 
D)  By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly. 
A)  There are four closing entries that update the owner's equity account. 
B)  After the second closing entry, the income summary account is equal to the net income or (loss) for the period. 
C)  All real accounts are closed at the end of the period. 
D)  By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly.

Question 11

The balance sheet accounts are referred to as real or permanent accounts.

Accepted Answer

A) True 
 B)False

Question 12

Identify which of the following accounts should be closed with a debit or a credit to Income Summary at the end of the fiscal year. If it is not closed to Income Summary, mark as n/a.
1. Utilities Payable
2. Utilities Expense
3. Supplies
4. Supplies Expense
5. Fees Earned
6. Unearned Fees
7. Accounts Receivable
8. Jason Hill, Drawing
9. Jason Hill, Capital
10. Accumulated Depreciation - Equipment
11. Depreciation Expense - Equipment
12. Equipment
13. Prepaid Insurance
14. Insurance Expense

Accepted Answer

The answer of Identify which of the following accounts should...

Question 13

Which of the items below does not appear on the work sheet?

Accepted Answer

A)  adjusting entries 
B)  the unadjusted trial balance 
C)  closing entries 
D)  the drawing account 
A)  adjusting entries 
B)  the unadjusted trial balance 
C)  closing entries 
D)  the drawing account

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

The answer of Morgan Olsen owns and operates Crystal Pool...

Question 17

Real accounts are permanent accounts.

Accepted Answer

A) True 
 B)False

Question 18

The usual presentation of the statement of owner's equity is (1) Beginning capital, (2) Net income or loss, (3) Drawing, (4) Owner's contributions, (5) Ending capital.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

The answer of Prepare closing entries from the following work...

Question 20

Balance sheet accounts

Accepted Answer

A)  represent amounts accumulated during a specific period of time 
B)  are called real accounts 
C)  have zero balances after the closing entries have been posted 
D)  are not affected by adjustments 
A)  represent amounts accumulated during a specific period of time 
B)  are called real accounts 
C)  have zero balances after the closing entries have been posted 
D)  are not affected by adjustments

Exam 4: Completing the Accounting Cycle

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

The income summary account is also called

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

The classified Balance Sheet will subsection the assets section as follows

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year end. Net income for the period is

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet.

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

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Which of the following is not true about closing entries?

The balance sheet accounts are referred to as real or permanent accounts.

Which of the items below does not appear on the work sheet?

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

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

Real accounts are permanent accounts.

The usual presentation of the statement of owner's equity is (1) Beginning capital, (2) Net income or loss, (3) Drawing, (4) Owner's contributions, (5) Ending capital.

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

Balance sheet accounts

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

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

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