Question 1

List and explain the steps in preparing a 10-column worksheet.

Accepted Answer

1. Enter the unadjusted trial balance. L

Question 2

On a work sheet, a loss is indicated if the total of the Income Statement Debit column exceeds the total of the Income Statement Credit column.

Accepted Answer

A) True 
 B)False

Question 3

List the steps in the accounting cycle.

Accepted Answer

The accounting cycle consists of ten ste

Question 4

Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The third closing entry is to close Owner's Capital to the Owner's Withdrawals account.

Accepted Answer

A) True 
 B)False

Question 8

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 changes in equity columns.

Accepted Answer

The answer of A partially completed work sheet is shown...

Question 9

Accounts that appear in the balance sheet are often called temporary (nominal) accounts.

Accepted Answer

A) True 
 B)False

Question 10

The aim of a post-closing trial balance is to verify that (1) total debits equal total credits for temporary accounts, and (2) all temporary accounts have zero balances.

Accepted Answer

A) True 
 B)False

Question 11

Match the following terms with the appropriate definition.

Accepted Answer

The answer of Match the following terms with the appropriate...

Question 12

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 13

Describe a work sheet and explain why it is useful.

Accepted Answer

A work sheet is a useful tool for organi

Question 14

Which of the following statements is incorrect?

Accepted Answer

A)  Permanent accounts is another name for nominal accounts. 
B)  Temporary accounts carry a zero balance at the beginning of each accounting period. 
C)  The Income Summary account is a temporary account. 
D)  Real accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence. 
E)  The closing process applies only to temporary accounts. 
A)  Permanent accounts is another name for nominal accounts. 
B)  Temporary accounts carry a zero balance at the beginning of each accounting period. 
C)  The Income Summary account is a temporary account. 
D)  Real accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence. 
E)  The closing process applies only to temporary accounts.

Question 15

Harry's Bikes' current assets are $400 million and its current liabilities are $250 million. Its current ratio is 0.63.

Accepted Answer

A) True 
 B)False

Question 16

Use the information in the adjusted trial balance presented below to calculate the current ratio for Jones Company:

Accepted Answer

A)  1.87. 
B)  .54. 
C)  3.92. 
D)  1.77. 
E)  1.60. 
A)  1.87. 
B)  .54. 
C)  3.92. 
D)  1.77. 
E)  1.60.

Question 17

The adjusted trial balance of the Thomas Company follows:
Prepare the closing entries for Thomas Company.

Accepted Answer

The answer of The adjusted trial balance of the Thomas...

Question 18

Long-term investments can include land held for future expansion.

Accepted Answer

A) True 
 B)False

Question 19

The following information is available for Crandall Company before closing the accounts. After all of the closing entries are made, what will be the balance in the Crandall, Capital account?

Accepted Answer

A)  $115,000. 
B)  $225,000. 
C)  $264,000. 
D)  $186,000. 
E)  $956,000. 
A)  $115,000. 
B)  $225,000. 
C)  $264,000. 
D)  $186,000. 
E)  $956,000.

Question 20

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:

Accepted Answer

A)  Debit J. Awn, Withdrawals $8,700; credit Cash, $8,700 
B)  Debit J. Awn, Capital $8,700; credit J. Awn, Withdrawals $8,700 
C)  Debit J. Awn, Withdrawals $8,700; credit J. Awn, Capital $8,700 
D)  Debit J. Awn, Capital $8,700, credit Salary Expense $8,700 
E)  Debit Income Summary $8,700; credit J. Awn, Capital $8,700 
A)  Debit J. Awn, Withdrawals $8,700; credit Cash, $8,700 
B)  Debit J. Awn, Capital $8,700; credit J. Awn, Withdrawals $8,700 
C)  Debit J. Awn, Withdrawals $8,700; credit J. Awn, Capital $8,700 
D)  Debit J. Awn, Capital $8,700, credit Salary Expense $8,700 
E)  Debit Income Summary $8,700; credit J. Awn, Capital $8,700

Exam 4: Completing the Accounting Cycle

List and explain the steps in preparing a 10-column worksheet.

On a work sheet, a loss is indicated if the total of the Income Statement Debit column exceeds the total of the Income Statement Credit column.

List the steps in the accounting cycle.

Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period.

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

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

The third closing entry is to close Owner's Capital to the Owner's Withdrawals account.

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 changes in equity columns.

Accounts that appear in the balance sheet are often called temporary (nominal) accounts.

The aim of a post-closing trial balance is to verify that (1) total debits equal total credits for temporary accounts, and (2) all temporary accounts have zero balances.

Match the following terms with the appropriate definition.

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Describe a work sheet and explain why it is useful.

Which of the following statements is incorrect?

Harry's Bikes' current assets are $400 million and its current liabilities are $250 million. Its current ratio is 0.63.

Use the information in the adjusted trial balance presented below to calculate the current ratio for Jones Company:

The adjusted trial balance of the Thomas Company follows: Prepare the closing entries for Thomas Company.

Long-term investments can include land held for future expansion.

The following information is available for Crandall Company before closing the accounts. After all of the closing entries are made, what will be the balance in the Crandall, Capital account?

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:

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

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

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

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