Question 1

Unearned Fees appear on the

Accepted Answer

A)  balance sheet in the current assets section
B)  balance sheet as a current liability
C)  balance sheet in the stockholders' equity section
D)  income statement as revenueE) C) and D)
F) B) and D)

Question 2

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

Accepted Answer

A)  The adjusted trial balance will show the net income (loss)  as an additional account.
B)  Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance.
C)  The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
D)  The adjusted trial balance will be used to record the adjustments for the period.E) A) and C)
F) None of the above

Question 3

After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must

Accepted Answer

A)  be the same amount as the total amount of the Income Statement Debit and Credit columns
B)  equal each other
C)  be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns
D)  not be equal to each other and need not be the same total amounts as any other pair of columns on the end-of-period spreadsheetE) A) and B)
F) A) and C)

Question 4

The last step of the accounting cycle is to prepare a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following account groups are temporary accounts?

Accepted Answer

A)  Cash, Dividends, Wages Payable
B)  Prepaid Insurance, Equipment, Fees Earned
C)  Common Stock, Dividends, Retained Earnings
D)  Rent Revenue, Fees Earned, Miscellaneous ExpenseE) All of the above
F) B) and D)

Question 6

An end-of-period spreadsheet includes columns for

Accepted Answer

A)  adjusting entries
B)  closing entries
C)  reversing entries
D)  adjusting and closing entriesE) A) and D)
F) B) and D)

Question 7

The following accounts appear in an adjusted trial balance of Blaine Auto Service Company. Indicate whether each account would be reported in the (a) current assets, (b) property, plant, and equipment, (c) current liabilities, (d) long-term liabilities, or (e) stockholders' equity section of the December 31 balance sheet of Blaine Auto Service Company.
1.Retained Earnings
2.Accumulated Depreciation
3.Unearned Revenues
4.Mortgage Payable
5.Equipment
6.Notes Payable (due in two years)
7.Cash
8.Accounts Receivable

Accepted Answer

1.(e) Stockholders' equity
2.(b) Propert...

Question 8

The accounting cycle begins with preparing an unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 9

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Accepted Answer

A) True 
 B)False

Question 10

The classified balance sheet will show which liability subsections?

Accepted Answer

A)  current liabilities and long-term liabilities
B)  current liabilities and other liabilities
C)  other liabilities and long-term liabilities
D)  present liabilities and tomorrow's liabilitiesE) C) and D)
F) None of the above

Question 11

Which of the statements below indicates that a company earned a net income for the period?

Accepted Answer

A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet.
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet.
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet.
D)  Cash inflows exceed cash outflows.E) All of the above
F) A) and C)

Exam 4: The Accounting Cycle

The classified balance sheet will show which liability subsections?

Correct Answer
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An end-of-period spreadsheet includes columns for

Correct Answer
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Correct Answer
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1.(e) Stockholders' equity
2.(b) Propert...
View Answer

Unearned Fees appear on the

Correct Answer
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Which of the following account groups are temporary accounts?

Correct Answer
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After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must

Correct Answer
verified

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

Correct Answer
verified

Which of the statements below indicates that a company earned a net income for the period?

Correct Answer
verified

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Correct Answer
verified

The accounting cycle begins with preparing an unadjusted trial balance.

Correct Answer
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The last step of the accounting cycle is to prepare a post-closing trial balance.

Correct Answer
verified

Exam 4: The Accounting Cycle

The classified balance sheet will show which liability subsections?

Correct AnswerverifiedShow Answer

An end-of-period spreadsheet includes columns for

Correct AnswerverifiedShow Answer

Correct Answerverified1.(e) Stockholders' equity2.(b) Propert...View AnswerShow Answer

Unearned Fees appear on the

Correct AnswerverifiedShow Answer

Which of the following account groups are temporary accounts?

Correct AnswerverifiedShow Answer

After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must

Correct AnswerverifiedShow Answer

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

Correct AnswerverifiedShow Answer

Which of the statements below indicates that a company earned a net income for the period?

Correct AnswerverifiedShow Answer

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Correct AnswerverifiedShow Answer

The accounting cycle begins with preparing an unadjusted trial balance.

Correct AnswerverifiedShow Answer

The last step of the accounting cycle is to prepare a post-closing trial balance.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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1.(e) Stockholders' equity
2.(b) Propert...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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