Question 1

All of the following statements are true regarding the Income Statement except?

Accepted Answer

A) The Income Statement may also be called the earnings statement. 
B) The measurement of income is not absolutely accurate or precise due to assumptions and estimates. 
C) The Income Statement only includes those events that have been evidenced by actual business transactions. 
D) The net income (or net loss)generated on the Income Statement appears at the top of the company's year-end balance sheet. 
A) The Income Statement may also be called the earnings statement. 
B) The measurement of income is not absolutely accurate or precise due to assumptions and estimates. 
C) The Income Statement only includes those events that have been evidenced by actual business transactions. 
D) The net income (or net loss)generated on the Income Statement appears at the top of the company's year-end balance sheet.

Question 2

Adjustments and closing process-basic entries
Selected ledger accounts used by Goldstone Advertising,Inc. ,are listed along with identifying numbers.Following this list of account numbers and titles in a series of transactions,you are required to indicate the proper accounts to be debited and credited for each transaction.

Accepted Answer

The answer of Adjustments and closing process-basic entries
Selected ledger accounts...

Question 3

If sales are $270,000,expenses are $220,000 and dividends are $30,000,Income Summary:

Accepted Answer

A) Will have a credit balance of $50,000. 
B) Will have a debit balance of $50,000. 
C) Will have a debit balance of $20,000. 
D) Will have a credit balance of $20,000. 
A) Will have a credit balance of $50,000. 
B) Will have a debit balance of $50,000. 
C) Will have a debit balance of $20,000. 
D) Will have a credit balance of $20,000.

Question 4

Net income for the period equals:

Accepted Answer

A) $20,960. 
B) $16,640. 
C) $21,920. 
D) $23,360. 
A) $20,960. 
B) $16,640. 
C) $21,920. 
D) $23,360.

Question 5

The total debits in the After-Closing Trial Balance will equal:

Accepted Answer

A) $23,500. 
B) $31,000. 
C) $50,750. 
D) $58,250. 
A) $23,500. 
B) $31,000. 
C) $50,750. 
D) $58,250.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which account will appear on an After-Closing Trial Balance?

Accepted Answer

A) Dividends 
B) Prepaid Expenses 
C) Retained Earnings,at the beginning of the period 
D) Sales 
A) Dividends 
B) Prepaid Expenses 
C) Retained Earnings,at the beginning of the period 
D) Sales

Question 8

Income Summary appears on which financial statement:

Accepted Answer

A) Income statement. 
B) Balance sheet. 
C) Retained Earnings statement. 
D) Income summary does not appear on any financial statement. 
A) Income statement. 
B) Balance sheet. 
C) Retained Earnings statement. 
D) Income summary does not appear on any financial statement.

Question 9

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 10

When a worksheet is prepared,which account would not be entered into the income statement columns?

Accepted Answer

A) Depreciation Expense 
B) Unearned Revenue 
C) Service Revenue 
D) Insurance Expense 
A) Depreciation Expense 
B) Unearned Revenue 
C) Service Revenue 
D) Insurance Expense

Question 11

The statement of retained earnings is based upon which of the following relationships?

Accepted Answer

A) Retained Earnings - Net Income - Dividends. 
B) Retained Earnings - Net Income + Dividends. 
C) Retained Earnings + Net Income + Dividends. 
D) Retained Earnings + Net Income - Dividends. 
A) Retained Earnings - Net Income - Dividends. 
B) Retained Earnings - Net Income + Dividends. 
C) Retained Earnings + Net Income + Dividends. 
D) Retained Earnings + Net Income - Dividends.

Question 12

If management desires monthly financial statements:

Accepted Answer

A) Journalizing and posting adjusting entries must be completed each month. 
B) Journalizing and posting closing entries must be completed each month. 
C) Monthly financial statements can be prepared from worksheets;adjustments and closing entries need not be entered in the accounting records. 
D) Adjusting and closing entries must be entered in the accounting records before preparation of interim financial statements. 
A) Journalizing and posting adjusting entries must be completed each month. 
B) Journalizing and posting closing entries must be completed each month. 
C) Monthly financial statements can be prepared from worksheets;adjustments and closing entries need not be entered in the accounting records. 
D) Adjusting and closing entries must be entered in the accounting records before preparation of interim financial statements.

Question 13

Interim financial statements usually report on a period of time less than one year.

Accepted Answer

A) True 
 B)False

Question 14

The accounts and their amounts for Belgrave Co.at December 31 are listed below.Prepare closing entries and an After-Closing Trial Balance.

Accepted Answer

@#IMG-DLM& After-Clo

Question 15

A company's annual report includes comparative statements for several years.

Accepted Answer

A) True 
 B)False

Question 16

Income Summary will have what balance before it is closed?

Accepted Answer

A) $28,640 
B) $15,600 
C) $21,920 
D) $16,640 
A) $28,640 
B) $15,600 
C) $21,920 
D) $16,640

Question 17

The net income percentage can be measured by dividing net income by total assets.

Accepted Answer

A) True 
 B)False

Question 18

A worksheet consists of all of the following except:

Accepted Answer

A) A trial balance. 
B) Adjusting entries. 
C) An adjusted trial balance. 
D) Transaction entries. 
A) A trial balance. 
B) Adjusting entries. 
C) An adjusted trial balance. 
D) Transaction entries.

Question 19

Completion of worksheet--missing data
Certain data are given on the worksheet below,and certain missing data are indicated by the blank boxes.Sufficient information is included to fill in the missing data.Each account has a debit or credit balance characteristically normal for that kind of account.Note that the dollar amounts have been reduced to figures of not more than three digits to simplify the arithmetic.
Insert the figures necessary to complete the worksheet in the blanks indicated by an underline.The boxes cover both debit and credit columns;be sure to insert the missing figures in the correct column of the box.

Accepted Answer

The answer of Completion of worksheet--missing data
Certain data are given...

Question 20

Working capital equals current assets divided by current liabilities.

Accepted Answer

A) True 
 B)False

Exam 5: The Accounting Cycle: Reporting Financial Results

All of the following statements are true regarding the Income Statement except?

If sales are $270,000,expenses are $220,000 and dividends are $30,000,Income Summary:

Net income for the period equals:

The total debits in the After-Closing Trial Balance will equal:

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

Which account will appear on an After-Closing Trial Balance?

Income Summary appears on which financial statement:

Dividends declared:

When a worksheet is prepared,which account would not be entered into the income statement columns?

The statement of retained earnings is based upon which of the following relationships?

If management desires monthly financial statements:

Interim financial statements usually report on a period of time less than one year.

The accounts and their amounts for Belgrave Co.at December 31 are listed below.Prepare closing entries and an After-Closing Trial Balance.

A company's annual report includes comparative statements for several years.

Income Summary will have what balance before it is closed?

The net income percentage can be measured by dividing net income by total assets.

A worksheet consists of all of the following except:

Working capital equals current assets divided by current liabilities.

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

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

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters