Question 1

The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?

Accepted Answer

A)  $65,000. 
B)  $80,000. 
C)  $130,000. 
D)  $145,000. 
E)  $280,000. 
A)  $65,000. 
B)  $80,000. 
C)  $130,000. 
D)  $145,000. 
E)  $280,000.

Question 2

The assets section of a classified balance sheet usually includes:

Accepted Answer

A)  Current assets, long-term investments, plant assets, and intangible assets. 
B)  Current assets, long-term assets, revenues, and intangible assets. 
C)  Current assets, long-term investments, plant assets, and equity. 
D)  Current liabilities, long-term investments, plant assets, and intangible assets. 
E)  Current assets, liabilities, plant assets, and intangible assets. 
A)  Current assets, long-term investments, plant assets, and intangible assets. 
B)  Current assets, long-term assets, revenues, and intangible assets. 
C)  Current assets, long-term investments, plant assets, and equity. 
D)  Current liabilities, long-term investments, plant assets, and intangible assets. 
E)  Current assets, liabilities, plant assets, and intangible assets.

Question 3

The balances in the unadjusted columns of a work sheet will agree with:

Accepted Answer

A)  the balances reflected in the company's financial statements. 
B)  the balances reflected in the company's unadjusted trial balance. 
C)  whatever balances management has decided to report. 
D)  the balances in the company's post-closing trial balance. 
E)  the balances management budgeted for the accounting period. 
A)  the balances reflected in the company's financial statements. 
B)  the balances reflected in the company's unadjusted trial balance. 
C)  whatever balances management has decided to report. 
D)  the balances in the company's post-closing trial balance. 
E)  the balances management budgeted for the accounting period.

Question 4

Explain why temporary accounts are closed each period.

Accepted Answer

Temporary accounts are closed at the end

Question 5

The usual order for the asset section of a classified balance sheet is:

Accepted Answer

A)  Current assets, prepaid expenses, long-term investments, intangible assets. 
B)  Long-term investments, current assets, plant assets, intangible assets. 
C)  Current assets, long-term investments, plant assets, intangible assets. 
D)  Intangible assets, current assets, long-term investments, plant assets. 
E)  Plant assets, intangible assets, long-term investments, current assets. 
A)  Current assets, prepaid expenses, long-term investments, intangible assets. 
B)  Long-term investments, current assets, plant assets, intangible assets. 
C)  Current assets, long-term investments, plant assets, intangible assets. 
D)  Intangible assets, current assets, long-term investments, plant assets. 
E)  Plant assets, intangible assets, long-term investments, current assets.

Question 6

Current liabilities are cash and other resources that are expected to be sold, collected or used within one year or the company's operating cycle whichever is longer.

Accepted Answer

A) True 
 B)False

Question 7

A post-closing trial balance reports:

Accepted Answer

A)  All ledger accounts with balances, none of which can be temporary accounts. 
B)  All ledger accounts with balances, none of which can be permanent accounts. 
C)  All ledger accounts with balances, which include some temporary and some permanent accounts. 
D)  Only revenue and expense accounts. 
E)  Only asset accounts. 
A)  All ledger accounts with balances, none of which can be temporary accounts. 
B)  All ledger accounts with balances, none of which can be permanent accounts. 
C)  All ledger accounts with balances, which include some temporary and some permanent accounts. 
D)  Only revenue and expense accounts. 
E)  Only asset accounts.

Question 8

Bentley records adjusting entries at its December 31 year end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

Accepted Answer

A)  Debit Salaries expense $12,000; credit Salaries payable $12,000. 
B)  Debit Salaries expense $18,000; debit Salaries payable $12,000; credit Cash $30,000. 
C)  Debit Salaries payable $18,000; credit Cash $18,000. 
D)  Debit Salaries payable $12,000, credit Salaries expense $12,000. 
E)  Debit Salaries expense $18,000; credit Salaries payable $18,000. 
A)  Debit Salaries expense $12,000; credit Salaries payable $12,000. 
B)  Debit Salaries expense $18,000; debit Salaries payable $12,000; credit Cash $30,000. 
C)  Debit Salaries payable $18,000; credit Cash $18,000. 
D)  Debit Salaries payable $12,000, credit Salaries expense $12,000. 
E)  Debit Salaries expense $18,000; credit Salaries payable $18,000.

Question 9

The Adjusted Trial Balance of Bade Cleaning Service is entered on the partial work sheet below. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by entering the amount of net income for the reporting period:

Accepted Answer

The answer of The Adjusted Trial Balance of Bade Cleaning...

Question 10

Explain the difference between temporary and permanent accounts.

Accepted Answer

Temporary, or nominal, accounts accumula

Question 11

The accounting cycle refers to the sequence of steps in preparing the work sheet.

Accepted Answer

A) True 
 B)False

Question 12

What is the purpose of a post-closing trial balance?

Accepted Answer

A post-closing trial balance is a list o

Question 13

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

Accepted Answer

A)  all revenue and expense accounts have zero balances. 
B)  the owner's capital account is debited for the amount of the net loss for the period. 
C)  the income summary account is debited for the amount of net income for the period. 
D)  all balance sheet accounts have zero balances. 
E)  only permanent accounts appear on the post-closing trial balance. 
A)  all revenue and expense accounts have zero balances. 
B)  the owner's capital account is debited for the amount of the net loss for the period. 
C)  the income summary account is debited for the amount of net income for the period. 
D)  all balance sheet accounts have zero balances. 
E)  only permanent accounts appear on the post-closing trial balance.

Question 14

The unadjusted trial balance of Quick Delivery is entered on the partial work sheet below. Complete the work sheet using the following information:
(a) Salaries earned by employees that are unpaid and unrecorded, $5,000.
(b) An inventory of supplies showed $1,000 of unused supplies still on hand.
(c) Depreciation on delivery vans, $24,000.
(d) Services paid in advance by customers of $10,000 have now been provided to customers.

Accepted Answer

The answer of The unadjusted trial balance of Quick Delivery...

Question 15

All of the following statements regarding a work sheet are true except:

Accepted Answer

A)  A worksheet aids in the preparation of financial statements. 
B)  A worksheet reduces the possibility of errors when working with many accounts and adjustments. 
C)  A worksheet does not assist in planning and organizing an audit of financial statements. 
D)  A worksheet helps in preparing interim financial statements. 
E)  A worksheet shows the effects of proposed or "what-if" transactions. 
A)  A worksheet aids in the preparation of financial statements. 
B)  A worksheet reduces the possibility of errors when working with many accounts and adjustments. 
C)  A worksheet does not assist in planning and organizing an audit of financial statements. 
D)  A worksheet helps in preparing interim financial statements. 
E)  A worksheet shows the effects of proposed or "what-if" transactions.

Question 16

Closing the temporary accounts at the end of each accounting period does all of the following except:

Accepted Answer

A)  Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet. 
B)  Prepares the withdrawals account for use in the next period. 
C)  Gives the revenue and expense accounts zero balances. 
D)  Has no effect on the owner's capital account. 
E)  Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals. 
A)  Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet. 
B)  Prepares the withdrawals account for use in the next period. 
C)  Gives the revenue and expense accounts zero balances. 
D)  Has no effect on the owner's capital account. 
E)  Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.

The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?

The assets section of a classified balance sheet usually includes:

The balances in the unadjusted columns of a work sheet will agree with:

Explain why temporary accounts are closed each period.

The usual order for the asset section of a classified balance sheet is:

Current liabilities are cash and other resources that are expected to be sold, collected or used within one year or the company's operating cycle whichever is longer.

A post-closing trial balance reports:

The Adjusted Trial Balance of Bade Cleaning Service is entered on the partial work sheet below. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by entering the amount of net income for the reporting period:

Explain the difference between temporary and permanent accounts.

The accounting cycle refers to the sequence of steps in preparing the work sheet.

What is the purpose of a post-closing trial balance?

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

All of the following statements regarding a work sheet are true except:

Closing the temporary accounts at the end of each accounting period does all of the following except:

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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Exam 4: Completing the Accounting Cycle

The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?

The assets section of a classified balance sheet usually includes:

The balances in the unadjusted columns of a work sheet will agree with:

Explain why temporary accounts are closed each period.

The usual order for the asset section of a classified balance sheet is:

Current liabilities are cash and other resources that are expected to be sold, collected or used within one year or the company's operating cycle whichever is longer.

A post-closing trial balance reports:

The Adjusted Trial Balance of Bade Cleaning Service is entered on the partial work sheet below. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by entering the amount of net income for the reporting period:

Explain the difference between temporary and permanent accounts.

The accounting cycle refers to the sequence of steps in preparing the work sheet.

What is the purpose of a post-closing trial balance?

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

All of the following statements regarding a work sheet are true except:

Closing the temporary accounts at the end of each accounting period does all of the following except:

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

Filters