Question 1

The Dividends account is closed directly to retained earnings at year-end.

Accepted Answer

A) True 
 B)False

Question 2

The closing entry for an expense account would consist of a:

Accepted Answer

A) Debit to Income Summary and a credit to the expense account. 
B) Debit to the expense account and a credit to Income Summary. 
C) Credit to Retained Earnings and a debit to the expense account. 
D) Credit to Revenue and a debit to the expense account. 
A) Debit to Income Summary and a credit to the expense account. 
B) Debit to the expense account and a credit to Income Summary. 
C) Credit to Retained Earnings and a debit to the expense account. 
D) Credit to Revenue and a debit to the expense account.

Question 3

Closing entries would be prepared before:

Accepted Answer

A) Financial statements are prepared. 
B) The after-closing trial balance. 
C) An adjusted trial balance. 
D) Adjusting entries. 
A) Financial statements are prepared. 
B) The after-closing trial balance. 
C) An adjusted trial balance. 
D) Adjusting entries.

Question 4

Which of the following financial statements is usually prepared last?

Accepted Answer

A) Income statement. 
B) Statement of retained earnings. 
C) Income tax return. 
D) Balance sheet. 
A) Income statement. 
B) Statement of retained earnings. 
C) Income tax return. 
D) Balance sheet.

Question 5

The current ratio is a measure of short-term debt paying ability.

Accepted Answer

A) True 
 B)False

Question 6

The balance in Income Summary:

Accepted Answer

A) Should equal retained earnings. 
B) Will always be equal to the increase in retained earnings. 
C) Will equal net income less dividends. 
D) Will equal net income or net loss. 
A) Should equal retained earnings. 
B) Will always be equal to the increase in retained earnings. 
C) Will equal net income less dividends. 
D) Will equal net income or net loss.

Question 7

Real accounts can only be closed at the end of the year with a single compound entry.

Accepted Answer

A) True 
 B)False

Question 8

Interim financial statements:

Accepted Answer

A) Cover a period less than one year. 
B) Cover only periods of a quarter of a year. 
C) Cover periods greater than a year. 
D) Cannot cover a period of one month or less. 
A) Cover a period less than one year. 
B) Cover only periods of a quarter of a year. 
C) Cover periods greater than a year. 
D) Cannot cover a period of one month or less.

Question 9

When a worksheet is used:

Accepted Answer

A) Adjusting entries are not prepared,since adjustments are shown on the worksheet. 
B) Revenue and expense accounts do not have to be closed to the Income Summary account,because the income statement is prepared from the worksheet and net income is already computed. 
C) Financial statements may be prepared before recording adjusting and closing entries in the accounting records. 
D) The Income Statement column and Balance Sheet column of the worksheet eliminate the need to prepare formal financial statements for a business. 
A) Adjusting entries are not prepared,since adjustments are shown on the worksheet. 
B) Revenue and expense accounts do not have to be closed to the Income Summary account,because the income statement is prepared from the worksheet and net income is already computed. 
C) Financial statements may be prepared before recording adjusting and closing entries in the accounting records. 
D) The Income Statement column and Balance Sheet column of the worksheet eliminate the need to prepare formal financial statements for a business.

Question 10

Dividends declared:

Accepted Answer

A) Reduce retained earnings. 
B) Increase retained earnings. 
C) Reduce net income. 
D) Increase net income. 
A) Reduce retained earnings. 
B) Increase retained earnings. 
C) Reduce net income. 
D) Increase net income.

Question 11

Dividends will have what effect upon retained earnings?

Accepted Answer

A) Increase. 
B) Decrease. 
C) No effect. 
D) Depends upon if there is income or loss. 
A) Increase. 
B) Decrease. 
C) No effect. 
D) Depends upon if there is income or loss.

The Dividends account is closed directly to retained earnings at year-end.

The closing entry for an expense account would consist of a:

Closing entries would be prepared before:

Which of the following financial statements is usually prepared last?

The current ratio is a measure of short-term debt paying ability.

The balance in Income Summary:

Real accounts can only be closed at the end of the year with a single compound entry.

Interim financial statements:

When a worksheet is used:

Dividends declared:

Dividends will have what effect upon retained earnings?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters

Exam 5: The Accounting Cycle: Reporting Financial Results

The Dividends account is closed directly to retained earnings at year-end.

The closing entry for an expense account would consist of a:

Closing entries would be prepared before:

Which of the following financial statements is usually prepared last?

The current ratio is a measure of short-term debt paying ability.

The balance in Income Summary:

Real accounts can only be closed at the end of the year with a single compound entry.

Interim financial statements:

When a worksheet is used:

Dividends declared:

Dividends will have what effect upon retained earnings?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters