Question 1

Normally closing entries are first entered in the general journal and then posted to the work sheet.

Accepted Answer

A) True 
 B)False

Question 2

On the work sheet, net income is entered in the Income Statement Credit column as well as the Balance Sheet Credit column.

Accepted Answer

A) True 
 B)False

Question 3

If all columns of a completed work sheet balance, you can be sure that no errors were made in its preparation.

Accepted Answer

A) True 
 B)False

Question 4

Financial statements can be prepared directly from the information in the adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 5

The Retained Earnings account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts?

Accepted Answer

A) Debit Income Summary $39,800; credit Expense accounts $39,800. 
B) Debit Expense accounts $37,000; credit Retained Earnings $37,000. 
C) Credit Expense accounts $39,800; debit Retained Earnings $39,800. 
D) Debit Expense accounts $39,800; credit Income Summary $39,800. 
E) Debit Income Summary $39,800; credit Retained Earnings $39,800. 
A) Debit Income Summary $39,800; credit Expense accounts $39,800. 
B) Debit Expense accounts $37,000; credit Retained Earnings $37,000. 
C) Credit Expense accounts $39,800; debit Retained Earnings $39,800. 
D) Debit Expense accounts $39,800; credit Income Summary $39,800. 
E) Debit Income Summary $39,800; credit Retained Earnings $39,800.

Question 6

A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The company paid $8,000 cash in dividends to the owner (sole shareholder). Which of the following entries could not be a closing entry?

Accepted Answer

A) Debit Income Summary $13,000; credit Retained Earnings $13,000. 
B) Debit Income Summary $75,000; credit Revenues $75,000. 
C) Debit Revenues $75,000; credit Income Summary $75,000. 
D) Debit Income Summary $62,000; credit Expenses $62,000. 
E) Debit Retained Earnings $8,000; credit Dividends $8,000. 
A) Debit Income Summary $13,000; credit Retained Earnings $13,000. 
B) Debit Income Summary $75,000; credit Revenues $75,000. 
C) Debit Revenues $75,000; credit Income Summary $75,000. 
D) Debit Income Summary $62,000; credit Expenses $62,000. 
E) Debit Retained Earnings $8,000; credit Dividends $8,000.

Question 7

Revenues, expenses, dividends, and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

Accepted Answer

temporary

Question 8

The ___________________ account is a temporary account used only in the closing process.

Accepted Answer

The answer of The ___________________ account is a temporary account...

Question 9

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Accepted Answer

A) Office Equipment. 
B) Accumulated Depreciation-Office Equipment. 
C) Depreciation Expense-Office Equipment. 
D) Retained Earnings. 
E) Salaries Payable. 
A) Office Equipment. 
B) Accumulated Depreciation-Office Equipment. 
C) Depreciation Expense-Office Equipment. 
D) Retained Earnings. 
E) Salaries Payable.

Question 10

A classified balance sheet:

Accepted Answer

A) Measures a company's ability to pay its bills on time. 
B) Organizes assets and liabilities into important subgroups that provide more information. 
C) Broadly groups items into assets, liabilities and equity. 
D) Reports operating, investing, and financing activities. 
E) Reports the effect of profit and dividends on retained earnings. 
A) Measures a company's ability to pay its bills on time. 
B) Organizes assets and liabilities into important subgroups that provide more information. 
C) Broadly groups items into assets, liabilities and equity. 
D) Reports operating, investing, and financing activities. 
E) Reports the effect of profit and dividends on retained earnings.

Question 11

An _______________________ is a listing of all of the accounts in the ledger with their account balances after adjustments are made.

Accepted Answer

adjusted t

Question 12

On December 31, 2015 Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:

Accepted Answer

A) Debit Utilities Expense $215; credit Accounts Payable $215. 
B) Debit Accounts Payable $215; credit Utilities Expense $215. 
C) Debit Prepaid Utilities $215; credit Cash $215. 
D) Debit Utilities Expense $215; credit Prepaid Utilities $215. 
E) Debit Prepaid Utilities $215; credit Accounts Payable $215. 
A) Debit Utilities Expense $215; credit Accounts Payable $215. 
B) Debit Accounts Payable $215; credit Utilities Expense $215. 
C) Debit Prepaid Utilities $215; credit Cash $215. 
D) Debit Utilities Expense $215; credit Prepaid Utilities $215. 
E) Debit Prepaid Utilities $215; credit Accounts Payable $215.

Question 13

Cleaver Corporation has determined that the annual depreciation amount on its equipment is $7,100. The correct adjusting entry to record the depreciation for the period is:

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 14

Another name for a temporary account is a(n):

Accepted Answer

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

Question 15

Torsten had total assets of $149,501,000, net income of $6,242,000, and net sales of $209,203,000. Its profit margin was 2.98%.
Profit Margin = Net Income/Net Sales
Profit Margin = $6,242,000/$209,203,000 = 2.98%

Accepted Answer

A) True 
 B)False

Question 16

Intangible assets are long-term resources that benefit business operations, usually lack physical form and have uncertain benefits.

Accepted Answer

A) True 
 B)False

Question 17

Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.

Accepted Answer

The answer of Show the December 31 adjusting entry to...

Question 18

Use the following partial work sheet from Carmelo Bowl, Inc. to prepare its income statement, statement of retained earnings and a classified balance sheet (Assume the stockholders did not make any investments in the business this year.)

Accepted Answer

The answer of Use the following partial work sheet from...

Question 19

Using the information presented below, prepare an income statement from the adjusted trial balance of Dodson Containers Inc.

Accepted Answer

The answer of Using the information presented below, prepare an...

Question 20

A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for the same period. Calculate its profit margin.

Accepted Answer

A) 85.4%. 
B) 117.1%. 
C) 53.9%. 
D) 217.1%. 
E) 46.1%. 
A) 85.4%. 
B) 117.1%. 
C) 53.9%. 
D) 217.1%. 
E) 46.1%.

Normally closing entries are first entered in the general journal and then posted to the work sheet.

On the work sheet, net income is entered in the Income Statement Credit column as well as the Balance Sheet Credit column.

If all columns of a completed work sheet balance, you can be sure that no errors were made in its preparation.

Financial statements can be prepared directly from the information in the adjusted trial balance.

The Retained Earnings account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts?

A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The company paid $8,000 cash in dividends to the owner (sole shareholder). Which of the following entries could not be a closing entry?

Revenues, expenses, dividends, and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

The ___________________ account is a temporary account used only in the closing process.

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

A classified balance sheet:

An _______________________ is a listing of all of the accounts in the ledger with their account balances after adjustments are made.

On December 31, 2015 Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:

Cleaver Corporation has determined that the annual depreciation amount on its equipment is $7,100. The correct adjusting entry to record the depreciation for the period is:

Another name for a temporary account is a(n):

Torsten had total assets of $149,501,000, net income of $6,242,000, and net sales of $209,203,000. Its profit margin was 2.98%. Profit Margin = Net Income/Net Sales Profit Margin = $6,242,000/$209,203,000 = 2.98%

Intangible assets are long-term resources that benefit business operations, usually lack physical form and have uncertain benefits.

Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.

Use the following partial work sheet from Carmelo Bowl, Inc. to prepare its income statement, statement of retained earnings and a classified balance sheet (Assume the stockholders did not make any investments in the business this year.)

Using the information presented below, prepare an income statement from the adjusted trial balance of Dodson Containers Inc.

A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for the same period. Calculate its profit margin.

Introducing Financial Accounting

Accounting System and Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 3: Adjusting Accounts for Financial Statements

Normally closing entries are first entered in the general journal and then posted to the work sheet.

On the work sheet, net income is entered in the Income Statement Credit column as well as the Balance Sheet Credit column.

If all columns of a completed work sheet balance, you can be sure that no errors were made in its preparation.

Financial statements can be prepared directly from the information in the adjusted trial balance.

The Retained Earnings account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts?

A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The company paid $8,000 cash in dividends to the owner (sole shareholder). Which of the following entries could not be a closing entry?

Revenues, expenses, dividends, and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

The ___________________ account is a temporary account used only in the closing process.

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

A classified balance sheet:

An _______________________ is a listing of all of the accounts in the ledger with their account balances after adjustments are made.

On December 31, 2015 Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:

Cleaver Corporation has determined that the annual depreciation amount on its equipment is $7,100. The correct adjusting entry to record the depreciation for the period is:

Another name for a temporary account is a(n):

Torsten had total assets of $149,501,000, net income of $6,242,000, and net sales of $209,203,000. Its profit margin was 2.98%. Profit Margin = Net Income/Net Sales Profit Margin = $6,242,000/$209,203,000 = 2.98%

Intangible assets are long-term resources that benefit business operations, usually lack physical form and have uncertain benefits.

Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.

Use the following partial work sheet from Carmelo Bowl, Inc. to prepare its income statement, statement of retained earnings and a classified balance sheet (Assume the stockholders did not make any investments in the business this year.)

Using the information presented below, prepare an income statement from the adjusted trial balance of Dodson Containers Inc.

A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for the same period. Calculate its profit margin.

Introducing Financial Accounting

Accounting System and Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters