Question 1

What are some of the steps that Ben Huh took to control CheezBurger Network costs?

Accepted Answer

Ben closely monitored all business activ

Question 2

The following are the steps in the accounting cycle. List them in the order in which they are completed:
Prepare adjusted trial balance
Post transactions
Prepare an unadjusted trial balance
Journalize transactions
Prepare the financial statements
Close the temporary accounts
Adjust the ledger accounts
Prepare a post-closing trial balance
Analyze transactions

Accepted Answer

1 Analyze transactions
2 Journalize tran

Question 3

What is an adjusted trial balance? Why is it prepared?

Accepted Answer

An adjusted trial balance is a list of a

Question 4

Western Company has an annual reporting period that runs from July 1st through June 30th. Based on this information which of the following is a true statement?

Accepted Answer

A)  Western probably has little seasonal variation in their sales 
B)  Western has violated the time period principle 
C)  Western must prepare financial statements as of December 31 each year 
D)  Western has adopted a fiscal year 
E)  Western does not have an accountant 
A)  Western probably has little seasonal variation in their sales 
B)  Western has violated the time period principle 
C)  Western must prepare financial statements as of December 31 each year 
D)  Western has adopted a fiscal year 
E)  Western does not have an accountant

Question 5

Accumulated depreciation is shown on the balance sheet as a subtraction from the cost of an asset.

Accepted Answer

A) True 
 B)False

Question 6

The accrual basis of accounting is an accounting system in which revenues are reported as earned when cash is received.

Accepted Answer

A) True 
 B)False

Question 7

A company had revenue of $250,000, rent expense of $10,000, utility expense of $3,500, salary expense of $18,500, depreciation expense of $9,000, advertising expense of $4,500, dividends in the amount of $18,000, and a beginning balance in retained earnings of $17,900. What is the balance in retained earnings for the end of the period?

Accepted Answer

A)  $250,000 
B)  $204,400 
C)  $204,500 
D)  $222,400 
E)  $232,100 
A)  $250,000 
B)  $204,400 
C)  $204,500 
D)  $222,400 
E)  $232,100

Question 8

The _____________________ form of balance sheet lists the asset accounts on the left side and the liabilities and equity accounts on the right side. The ______________________ form of balance sheet lists items vertically with assets followed by liabilities then equity accounts.

Accepted Answer

The answer of The _____________________ form of balance sheet lists...

Question 9

The first five steps in the accounting cycle include analyzing transactions, journalizing, posting, preparing an unadjusted trial balance and recording adjusting entries.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

Accepted Answer

A)  Entering an asset amount in the Income Statement Debit column 
B)  Entering a liability amount in the Income Statement Credit column 
C)  Entering an expense amount in the Balance Sheet Debit column 
D)  Entering a revenue amount in the Balance Sheet Debit column 
E)  Entering a liability amount in the Balance Sheet Credit column 
A)  Entering an asset amount in the Income Statement Debit column 
B)  Entering a liability amount in the Income Statement Credit column 
C)  Entering an expense amount in the Balance Sheet Debit column 
D)  Entering a revenue amount in the Balance Sheet Debit column 
E)  Entering a liability amount in the Balance Sheet Credit column

Question 11

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Accepted Answer

A)  Office Equipment 
B)  Accumulated Depreciation-Office Equipment 
C)  Depreciation Expense-Office Equipment 
D)  Common Stock 
E)  Salaries Payable 
A)  Office Equipment 
B)  Accumulated Depreciation-Office Equipment 
C)  Depreciation Expense-Office Equipment 
D)  Common Stock 
E)  Salaries Payable

Question 12

The following items appeared on a company's December 31 work sheet for the current period. Based on the following information, what is net income for the current period?

Accepted Answer

A)  $1,400 
B)  $1,855 
C)  $1,905 
D)  $2,060 
E)  $4,670 
A)  $1,400 
B)  $1,855 
C)  $1,905 
D)  $2,060 
E)  $4,670

Question 13

The cash basis of accounting requires that revenues be recognized when cash payments from customers are received.

Accepted Answer

A) True 
 B)False

Question 14

Companies experiencing seasonal variations in sales often choose a fiscal year corresponding to their ________________________ year.

Accepted Answer

The answer of Companies experiencing seasonal variations in sales often...

Question 15

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

Accepted Answer

A)  Debit Unpaid Salaries and credit Salaries Payable 
B)  Debit Salaries Payable and credit Salaries Expense 
C)  Debit Salaries Expense and credit Cash 
D)  Debit Salaries Expense and credit Salaries Payable 
E)  Debit Cash and credit Salaries Expense 
A)  Debit Unpaid Salaries and credit Salaries Payable 
B)  Debit Salaries Payable and credit Salaries Expense 
C)  Debit Salaries Expense and credit Cash 
D)  Debit Salaries Expense and credit Salaries Payable 
E)  Debit Cash and credit Salaries Expense

Question 16

A company's fiscal year must correspond with the calendar year.

Accepted Answer

A) True 
 B)False

Question 17

Describe the types of entries required in later periods that result from accruals.

Accepted Answer

Accrued revenues in one period result in

Question 18

The current ratio:

Accepted Answer

A)  Is used to measure a company's profitability 
B)  Is used to measure the relation between assets and long-term debt 
C)  Measures the effect of operating income on profit 
D)  Is used to help evaluate a company's ability to pay its short-term obligations 
E)  Is calculated by dividing current assets by equity 
A)  Is used to measure a company's profitability 
B)  Is used to measure the relation between assets and long-term debt 
C)  Measures the effect of operating income on profit 
D)  Is used to help evaluate a company's ability to pay its short-term obligations 
E)  Is calculated by dividing current assets by equity

Question 19

The Retained Earnings account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800 and dividends are $9,000, what is the ending balance in the Retained Earnings account after all closing entries are made?

Accepted Answer

A)  $8,000 
B)  $15,400 
C)  $23,400 
D)  $17,000 
E)  $32,400 
A)  $8,000 
B)  $15,400 
C)  $23,400 
D)  $17,000 
E)  $32,400

Question 20

Describe a worksheet and explain why it is useful.

Accepted Answer

A worksheet is a useful tool for organiz

Exam 3: Adjusting Accounts and Preparing Financial Statements

What are some of the steps that Ben Huh took to control CheezBurger Network costs?

What is an adjusted trial balance? Why is it prepared?

Western Company has an annual reporting period that runs from July 1st through June 30th. Based on this information which of the following is a true statement?

Accumulated depreciation is shown on the balance sheet as a subtraction from the cost of an asset.

The accrual basis of accounting is an accounting system in which revenues are reported as earned when cash is received.

The _____________________ form of balance sheet lists the asset accounts on the left side and the liabilities and equity accounts on the right side. The ______________________ form of balance sheet lists items vertically with assets followed by liabilities then equity accounts.

The first five steps in the accounting cycle include analyzing transactions, journalizing, posting, preparing an unadjusted trial balance and recording adjusting entries.

Which of the following errors would cause the Balance Sheet columns of a work sheet to be out of balance?

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

The following items appeared on a company's December 31 work sheet for the current period. Based on the following information, what is net income for the current period?

The cash basis of accounting requires that revenues be recognized when cash payments from customers are received.

Companies experiencing seasonal variations in sales often choose a fiscal year corresponding to their ________________________ year.

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

A company's fiscal year must correspond with the calendar year.

Describe the types of entries required in later periods that result from accruals.

The current ratio:

The Retained Earnings account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800 and dividends are $9,000, what is the ending balance in the Retained Earnings account after all closing entries are made?

Describe a worksheet and explain why it is useful.

Introducing Accounting in Business

Analyzing and Recording Transactions

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Decentralization and Performance Evaluation

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Investments and International Operations

Accounting for Partnerships

Appendix : Accounting With Special Journals

Filters

Western Company has an annual reporting period that runs from July 1^st through June 30^th. Based on this information which of the following is a true statement?

The _ form of balance sheet lists the asset accounts on the left side and the liabilities and equity accounts on the right side. The __ form of balance sheet lists items vertically with assets followed by liabilities then equity accounts.