A) are necessary when journal entries have been incorrectly recorded. B) are a required step in the accounting cycle. C) will often result in abnormal account balances in some accounts. D) are required only if the company uses accounting software to record journal entries. E) must be made before preparing the post-closing trial balance. A) are necessary when journal entries have been incorrectly recorded. B) are a required step in the accounting cycle. C) will often result in abnormal account balances in some accounts. D) are required only if the company uses accounting software to record journal entries. E) must be made before preparing the post-closing trial balance.

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 debts in the near future. 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 debts in the near future. E) Is calculated by dividing current assets by equity.

Exam 4: Completing the Accounting Cycle

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A columnar working paper used to prepare a company's unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements, and which is an optional tool in the accounting process is a(n):

(Multiple Choice)

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Question 121

Two common subgroups for liabilities on a classified balance sheet are:

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Question 122

All necessary numbers to prepare the income statement can be taken from the income statement columns of the work sheet, including the net income or net loss.

(True/False)

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Question 123

Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:

(Multiple Choice)

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Question 124

Describe a work sheet and explain why it is useful.

(Essay)

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Question 125

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

(True/False)

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Question 126

A partially completed work sheet is shown below. The unadjusted trial balance columns are complete. Complete the adjustments, adjusted trial balance, income statement, and balance sheet and statement of owner's equity columns.

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Question 127

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

(Multiple Choice)

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Question 128

Plant assets are usually listed in order from most liquid to least liquid.

(True/False)

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Question 129

Which of the following statements regarding reporting under GAAP and IFRS is not true?

(Multiple Choice)

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Question 130

Closing entries are required:

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Question 131

Reversing entries:

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Question 132

Assets are often classified into current assets, long-term investments, plant assets, and intangible assets.

(True/False)

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Question 133

Reversing entries are linked to ______________ and _ that were created by adjusting entries at the end of the prior accounting period. __________________________________

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Question 134

The following adjusted trial balance is for Clara Co. at year-end December 31. The credit balance in Clara, Capital at the beginning of the year, January 1, was $320,000. The owner, Sara Clara, invested an additional $100,000 during the current year. The land held for future expansion was also purchased during the current year.

(Essay)

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Question 135

Closing entries are necessary so that owner's capital will begin each period with a zero balance.

(True/False)

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Question 136

Current liabilities include accounts receivable, unearned revenues, and salaries payable.

(True/False)

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Question 137

J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

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Question 138

The current ratio:

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Question 139

A work sheet is a substitute for the set of financial statements.

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Question 140

Showing 121 - 140 of 176

Exam 4: Completing the Accounting Cycle

A columnar working paper used to prepare a company's unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements, and which is an optional tool in the accounting process is a(n):

Two common subgroups for liabilities on a classified balance sheet are:

All necessary numbers to prepare the income statement can be taken from the income statement columns of the work sheet, including the net income or net loss.

Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:

Describe a work sheet and explain why it is useful.

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

A partially completed work sheet is shown below. The unadjusted trial balance columns are complete. Complete the adjustments, adjusted trial balance, income statement, and balance sheet and statement of owner's equity columns.

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

Plant assets are usually listed in order from most liquid to least liquid.

Which of the following statements regarding reporting under GAAP and IFRS is not true?

Closing entries are required:

Reversing entries:

Assets are often classified into current assets, long-term investments, plant assets, and intangible assets.

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of the prior accounting period. ________________________________________

Closing entries are necessary so that owner's capital will begin each period with a zero balance.

Current liabilities include accounts receivable, unearned revenues, and salaries payable.

J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

The current ratio:

A work sheet is a substitute for the set of financial statements.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

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Reversing entries are linked to ______________ and _ that were created by adjusting entries at the end of the prior accounting period. __________________________________