Question 1

Long-term investments can include land not currently being used in operations.

Accepted Answer

A) True 
 B)False

Question 2

Closing entries accomplish the goal of reflecting revenues and expenses in the owner's capital account.

Accepted Answer

A) True 
 B)False

Question 3

Shown below is Bill Brady Law's adjusted trial balance at the end of its annual accounting period.   Prepare the necessary closing entries.

Accepted Answer

The answer of Shown below is Bill Brady Law's adjusted...

Question 4

Accumulated Depreciation,Equipment,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Accepted Answer

A)  Statement of changes in equity or Balance Sheet-Credit; Statement of changes in equity or Balance Sheet-Debit; and Income Statement-Credit. 
B)  Statement of changes in equity or Balance Sheet-Debit; Statement of changes in equity or Balance Sheet-Credit; and Income Statement-Credit. 
C)  Income Statement-Debit; Statement of changes in equity or Balance Sheet-Debit; and Income Statement-Credit. 
D)  Income Statement-Debit; Income Statement-Debit; and Statement of changes in equity or Balance Sheet-Credit. 
E)  Statement of changes in equity or Balance Sheet-Credit; Income Statement-Debit; and Income Statement-Credit. 
A)  Statement of changes in equity or Balance Sheet-Credit; Statement of changes in equity or Balance Sheet-Debit; and Income Statement-Credit. 
B)  Statement of changes in equity or Balance Sheet-Debit; Statement of changes in equity or Balance Sheet-Credit; and Income Statement-Credit. 
C)  Income Statement-Debit; Statement of changes in equity or Balance Sheet-Debit; and Income Statement-Credit. 
D)  Income Statement-Debit; Income Statement-Debit; and Statement of changes in equity or Balance Sheet-Credit. 
E)  Statement of changes in equity or Balance Sheet-Credit; Income Statement-Debit; and Income Statement-Credit.

Question 5

A work sheet is prepared before entering the adjustments in the accounts.

Accepted Answer

A) True 
 B)False

Question 6

The steps in the closing process are (1)close credit balances in revenue accounts to Income Summary; (2)close credit balances in expense accounts to Income Summary; (3)close Income Summary to Owner's Capital; (4)close Withdrawals to Owner's Capital.

Accepted Answer

A) True 
 B)False

Question 7

Accounts that are used to describe assets,liabilities,and equity,that are not closed as long as the company continues to own the assets,owe the liabilities,or have equity,and whose balances appear on the balance sheet are called:

Accepted Answer

A)  Nominal accounts. 
B)  Temporary accounts. 
C)  Permanent accounts. 
D)  Contra accounts. 
E)  Accrued accounts. 
A)  Nominal accounts. 
B)  Temporary accounts. 
C)  Permanent accounts. 
D)  Contra accounts. 
E)  Accrued accounts.

Question 8

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)  Ted Nash,Capital. 
E)  Salaries Payable. 
A)  Office Equipment. 
B)  Accumulated Depreciation,Office Equipment. 
C)  Depreciation expense,Office Equipment. 
D)  Ted Nash,Capital. 
E)  Salaries Payable.

Question 9

The current ratio is calculated by dividing current liabilities by current assets.

Accepted Answer

A) True 
 B)False

Question 10

Property,plant and equipment and intangible assets are long-term assets used to produce or sell products and services.

Accepted Answer

A) True 
 B)False

Question 11

If the Balance Sheet columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet Credit column,the cause could be:

Accepted Answer

A)  An expense amount entered in the Balance Sheet Debit column. 
B)  A revenue amount entered in the Balance Sheet Credit column. 
C)  An asset amount entered in the Income Statement Debit column. 
D)  A liability amount entered in the Balance Sheet Debit column. 
E)  A liability amount entered in the Income Statement Credit column. 
A)  An expense amount entered in the Balance Sheet Debit column. 
B)  A revenue amount entered in the Balance Sheet Credit column. 
C)  An asset amount entered in the Income Statement Debit column. 
D)  A liability amount entered in the Balance Sheet Debit column. 
E)  A liability amount entered in the Income Statement Credit column.

Question 12

The current ratio:

Accepted Answer

A)  Is current assets divided by current liabilities. 
B)  Helps to assess a company's ability to pay its debts in the near future. 
C)  Suggests there may be problems in a business if it is less than 1. 
D)  Is a measure of a company's liquidity. 
E)  All of these answers are correct. 
A)  Is current assets divided by current liabilities. 
B)  Helps to assess a company's ability to pay its debts in the near future. 
C)  Suggests there may be problems in a business if it is less than 1. 
D)  Is a measure of a company's liquidity. 
E)  All of these answers are correct.

Question 13

Another name for temporary accounts is:

Accepted Answer

A)  Real accounts. 
B)  Contra accounts. 
C)  Accrued accounts. 
D)  Balance column accounts. 
E)  Nominal accounts. 
A)  Real accounts. 
B)  Contra accounts. 
C)  Accrued accounts. 
D)  Balance column accounts. 
E)  Nominal accounts.

Question 14

(A)In a sole proprietorship,Income Summary is closed to what account? (B)In following the steps of the accounting cycle,what two steps must be done before preparation of an unadjusted trial balance?

Accepted Answer

(A)Owner's capital a

Question 15

The closing process resets ________,__________,and ________ account balances to zero at the end of every accounting period.

Accepted Answer

revenue; e

Question 16

Explain the purpose of closing entries and describe the closing process.

Accepted Answer

The purpose of closing entries is to tra

Question 17

The information on a work sheet can be used to prepare:

Accepted Answer

A)  Year end financial statements. 
B)  Adjusting entries. 
C)  Closing entries. 
D)  Interim financial statements. 
E)  All of these answers are correct. 
A)  Year end financial statements. 
B)  Adjusting entries. 
C)  Closing entries. 
D)  Interim financial statements. 
E)  All of these answers are correct.

Question 18

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of a reporting period.

Accepted Answer

accrued as

Question 19

The third closing entry is to close Withdrawals to Income Summary.

Accepted Answer

A) True 
 B)False

Question 20

Presented below are the year-end balances at October 31 of Max Missle Paintball Co.All accounts have normal balances.   Prepare the necessary closing entries at October 31.

Accepted Answer

The answer of Presented below are the year-end balances at...

Long-term investments can include land not currently being used in operations.

Closing entries accomplish the goal of reflecting revenues and expenses in the owner's capital account.

Shown below is Bill Brady Law's adjusted trial balance at the end of its annual accounting period. Prepare the necessary closing entries.

Accumulated Depreciation,Equipment,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

A work sheet is prepared before entering the adjustments in the accounts.

The steps in the closing process are (1)close credit balances in revenue accounts to Income Summary; (2)close credit balances in expense accounts to Income Summary; (3)close Income Summary to Owner's Capital; (4)close Withdrawals to Owner's Capital.

Accounts that are used to describe assets,liabilities,and equity,that are not closed as long as the company continues to own the assets,owe the liabilities,or have equity,and whose balances appear on the balance sheet are called:

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

The current ratio is calculated by dividing current liabilities by current assets.

Property,plant and equipment and intangible assets are long-term assets used to produce or sell products and services.

If the Balance Sheet columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet Credit column,the cause could be:

The current ratio:

Another name for temporary accounts is:

(A)In a sole proprietorship,Income Summary is closed to what account? (B)In following the steps of the accounting cycle,what two steps must be done before preparation of an unadjusted trial balance?

The closing process resets ,,and __ account balances to zero at the end of every accounting period.

Explain the purpose of closing entries and describe the closing process.

The information on a work sheet can be used to prepare:

Reversing entries are linked to ________ and _ that were created by adjusting entries at the end of a reporting period.

The third closing entry is to close Withdrawals to Income Summary.

Presented below are the year-end balances at October 31 of Max Missle Paintball Co.All accounts have normal balances. Prepare the necessary closing entries at October 31.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 4: Completing the Accounting Cycle and Classifying Accounts

Long-term investments can include land not currently being used in operations.

Closing entries accomplish the goal of reflecting revenues and expenses in the owner's capital account.

Shown below is Bill Brady Law's adjusted trial balance at the end of its annual accounting period. Prepare the necessary closing entries.

Accumulated Depreciation,Equipment,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

A work sheet is prepared before entering the adjustments in the accounts.

The steps in the closing process are (1)close credit balances in revenue accounts to Income Summary; (2)close credit balances in expense accounts to Income Summary; (3)close Income Summary to Owner's Capital; (4)close Withdrawals to Owner's Capital.

Accounts that are used to describe assets,liabilities,and equity,that are not closed as long as the company continues to own the assets,owe the liabilities,or have equity,and whose balances appear on the balance sheet are called:

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

The current ratio is calculated by dividing current liabilities by current assets.

Property,plant and equipment and intangible assets are long-term assets used to produce or sell products and services.

If the Balance Sheet columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet Credit column,the cause could be:

The current ratio:

Another name for temporary accounts is:

(A)In a sole proprietorship,Income Summary is closed to what account? (B)In following the steps of the accounting cycle,what two steps must be done before preparation of an unadjusted trial balance?

The closing process resets ________,__________,and ________ account balances to zero at the end of every accounting period.

Explain the purpose of closing entries and describe the closing process.

The information on a work sheet can be used to prepare:

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of a reporting period.

The third closing entry is to close Withdrawals to Income Summary.

Presented below are the year-end balances at October 31 of Max Missle Paintball Co.All accounts have normal balances. Prepare the necessary closing entries at October 31.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

The closing process resets ,,and __ account balances to zero at the end of every accounting period.

Reversing entries are linked to ________ and _ that were created by adjusting entries at the end of a reporting period.