Question 1

The December 31,2017 worksheet for Albertville Grill showed the following amounts related to the Depreciation Expense account:

Accepted Answer

A) $1,870 
B) $1,745 
C) $0 
D) $1,125 
A) $1,870 
B) $1,745 
C) $0 
D) $1,125

Question 2

Declaring a dividend will:

Accepted Answer

A) Increase net income. 
B) Decrease net income. 
C) Not change net income. 
D) Increase the net worth of a company. 
A) Increase net income. 
B) Decrease net income. 
C) Not change net income. 
D) Increase the net worth of a company.

Question 3

Publicly traded companies must file audited financial statements with the:

Accepted Answer

A) AICPA. 
B) IRS. 
C) SEC. 
D) AAA. 
A) AICPA. 
B) IRS. 
C) SEC. 
D) AAA.

Question 4

Closing entries should be made:

Accepted Answer

A) Every year. 
B) Only when an entity goes out of business. 
C) Only if there is a profit. 
D) Only if there is a loss. 
A) Every year. 
B) Only when an entity goes out of business. 
C) Only if there is a profit. 
D) Only if there is a loss.

Question 5

Dividends declared are an expense and reduce net income.

Accepted Answer

A) True 
 B)False

Question 6

The section of the annual report titled "Management Discussion and Analysis" is:

Accepted Answer

A) Required by the SEC. 
B) Not required,but it may be included by management. 
C) Required by GAAP. 
D) Reported to the SEC,but it is not included in the annual report. 
A) Required by the SEC. 
B) Not required,but it may be included by management. 
C) Required by GAAP. 
D) Reported to the SEC,but it is not included in the annual report.

Question 7

[The following information applies to the questions displayed below.]
Shown below is a trial balance for Cornell Products,Inc. ,on December 31,after adjusting entries:
  
-Net income for the period equals:

Accepted Answer

A) $ 11,600. 
B) $ 22,000. 
C) $ 22,500. 
D) $36,750. 
A) $ 11,600. 
B) $ 22,000. 
C) $ 22,500. 
D) $36,750.

Question 8

Adjustments and closing process-basic entries
Selected ledger accounts used by Speedy Truck Rentals,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 9

Closing entries never involve posting a credit to the:

Accepted Answer

A) Income Summary account. 
B) Accumulated Depreciation account. 
C) Dividends account. 
D) Depreciation Expense account. 
A) Income Summary account. 
B) Accumulated Depreciation account. 
C) Dividends account. 
D) Depreciation Expense account.

Question 10

The balance sheet is prepared first because if it balances,all the accounting information is correct and can be used to prepare the other financial statements.

Accepted Answer

A) True 
 B)False

Question 11

The following information is available:   What is the return on equity? (Round your answer to the nearest whole number. )

Accepted Answer

A) 5%. 
B) 20%. 
C) 25%. 
D) 15%. 
A) 5%. 
B) 20%. 
C) 25%. 
D) 15%.

Question 12

Accounting terminology
Listed below are eight technical accounting terms emphasized in this chapter:
   In the space provided for each statement,indicate the accounting term described.
________ a.The generally accepted accounting principle of providing with financial statements any information that users need to interpret those statements properly.
________ b.A trial balance prepared after all closing entries have been posted.This trial balance consists only of accounts for assets,liabilities,and owners' equity.
________ c.Journal entries made at the end of the period for the purpose of closing temporary accounts (revenue,expense,and dividend accounts)and transferring balances to the Retained Earnings account.
________ d.Computer software used for recording transactions,maintaining journals and ledgers,and preparing financial statements.Also includes spreadsheet capabilities for showing the effects of proposed adjusting entries or transactions on the financial statements without actually recording these entries in the accounting records.
________ e.The summary account in the ledger to which revenue and expense accounts are closed at the end of the period.The balance (credit balance for a net income,debit balance for a net loss)is transferred to the Retained Earnings account.
________ f.Financial statements prepared for periods of less than one year (includes monthly and quarterly statements).
________ g.Supplemental disclosures that accompany financial statements.They provide users with various types of information considered necessary for the proper interpretation of the statements.
________ h.A multicolumn schedule showing the relationships among the current account balances (a trial balance),proposed or actual adjusting entries or transactions,and the financial statements that would result if these adjusting entries or transactions were recorded.Used both at the end of the accounting period as an aid to preparing financial statements and for planning purposes.

Accepted Answer

(a)Adequate disclosure (b)Afte

Question 13

After closing the accounts,Retained Earnings at December 31 equals:

Accepted Answer

A) Zero. 
B) $18,400. 
C) $19,360. 
D) $16,640. 
A) Zero. 
B) $18,400. 
C) $19,360. 
D) $16,640.

Question 14

Given the following information for the Maple Tree Co.for the year ended December 31,2018,prepare a Statement of Retained Earnings.

Accepted Answer

The Statement of Ret

Question 15

[The following information applies to the questions displayed below.]
Shown below is the adjusted Trial Balance for Simon Inc. ,on December 31,after the first year of operations,after adjusting entries:
  
-The entry to close Depreciation Expense account will:

Accepted Answer

A) Transfer the balance of Depreciation Expense directly to Retained Earnings. 
B) Include a debit to Income Summary. 
C) Include a debit to Depreciation Expense. 
D) Include a credit to Capital Stock. 
A) Transfer the balance of Depreciation Expense directly to Retained Earnings. 
B) Include a debit to Income Summary. 
C) Include a debit to Depreciation Expense. 
D) Include a credit to Capital Stock.

Question 16

Which of the following financial statements is usually prepared first?

Accepted Answer

A) Income statement. 
B) Statement of retained earnings. 
C) Income tax return. 
D) Balance sheet. 
A) Income statement. 
B) Statement of retained earnings. 
C) Income tax return. 
D) Balance sheet.

Question 17

The following information is available:   What is the net income percentage? (Round your answer to the nearest whole number. )

Accepted Answer

A) 5% 
B) 15% 
C) 20% 
D) 25% 
A) 5% 
B) 15% 
C) 20% 
D) 25%

Question 18

Which of the following amounts appears in both the Income Statement debit column and the Balance Sheet credit column of a worksheet?

Accepted Answer

A) Net income. 
B) Net loss. 
C) Dividends. 
D) Retained earnings. 
A) Net income. 
B) Net loss. 
C) Dividends. 
D) Retained earnings.

Question 19

Closing entries
An Adjusted Trial Balance for Tiger,Inc. ,at December 31 appears below.   Prepare journal entries to close the accounts.Use four entries to: (1)close the revenue account, (2)close the expense accounts, (3)close the Income Summary account,and (4)close the Dividends account.

Accepted Answer

The answer of Closing entries
An Adjusted Trial Balance for Tiger,Inc....

Question 20

The concept of adequate disclosure:

Accepted Answer

A) Demands a "good faith effort" by management. 
B) Grants users of the financial statements access to a company's accounting records. 
C) Does not apply to events occurring after the balance sheet date. 
D) Specifies which accounting methods must be used in a company's financial statements. 
A) Demands a "good faith effort" by management. 
B) Grants users of the financial statements access to a company's accounting records. 
C) Does not apply to events occurring after the balance sheet date. 
D) Specifies which accounting methods must be used in a company's financial statements.

Exam 5: The Accounting Cycle: Reporting Financial Results

The December 31,2017 worksheet for Albertville Grill showed the following amounts related to the Depreciation Expense account:

Declaring a dividend will:

Publicly traded companies must file audited financial statements with the:

Closing entries should be made:

Dividends declared are an expense and reduce net income.

The section of the annual report titled "Management Discussion and Analysis" is:

[The following information applies to the questions displayed below.] Shown below is a trial balance for Cornell Products,Inc. ,on December 31,after adjusting entries: -Net income for the period equals:

Closing entries never involve posting a credit to the:

The balance sheet is prepared first because if it balances,all the accounting information is correct and can be used to prepare the other financial statements.

The following information is available: What is the return on equity? (Round your answer to the nearest whole number. )

After closing the accounts,Retained Earnings at December 31 equals:

Given the following information for the Maple Tree Co.for the year ended December 31,2018,prepare a Statement of Retained Earnings.

[The following information applies to the questions displayed below.] Shown below is the adjusted Trial Balance for Simon Inc. ,on December 31,after the first year of operations,after adjusting entries: -The entry to close Depreciation Expense account will:

Which of the following financial statements is usually prepared first?

The following information is available: What is the net income percentage? (Round your answer to the nearest whole number. )

Which of the following amounts appears in both the Income Statement debit column and the Balance Sheet credit column of a worksheet?

Closing entries An Adjusted Trial Balance for Tiger,Inc. ,at December 31 appears below. Prepare journal entries to close the accounts.Use four entries to: (1)close the revenue account, (2)close the expense accounts, (3)close the Income Summary account,and (4)close the Dividends account.

The concept of adequate disclosure:

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