Question 1

Journalize the reversing entry on January 1 of the current year for the following ​adjusting journal entry from the prior year:
​  ​

Accepted Answer

The reversing entry ...

Question 2

Explain how net income or loss is determined by using the end-of-period spreadsheets.

Accepted Answer

The difference between the debits and cr...

Question 3

Of the following steps of the accounting cycle, which step should be completed last?

Accepted Answer

A)   An adjusted trial balance is prepared.
B)   Transactions are posted to the ledger.
C)   An unadjusted trial balance is prepared.
D)   Adjusting entries are journalized and posted to the ledger.E) None of the above
F) A) and B)

Question 4

Which one of the fixed asset accounts listed below will not have a related contra asset account?

Accepted Answer

A)   Office Equipment
B)   Land
C)   Delivery Equipment
D)   BuildingE) All of the above
F) A) and B)

Question 5

A business's current assets divided by its current liabilities is equal to its

Accepted Answer

A)   current ratio.
B)   working capital.
C)   current net income.
D)   current equity.E) All of the above
F) A) and C)

Question 6

The following are all the steps in the accounting cycle. List them in the order in which they should be done.
​
- Closing entries are journalized and posted to the ledger.
- An unadjusted trial balance is prepared.
- An optional end-of-period spreadsheet is prepared.
- A post-closing trial balance is prepared.
- Adjusting entries are journalized and posted to the ledger.
- Transactions are analyzed and recorded in the journal.
- Adjustment data are assembled and analyzed.
- Financial statements are prepared.
- An adjusted trial balance is prepared.
- Transactions are posted to the ledger.

Accepted Answer

The answer of The following are all the steps in...

Question 7

A reversing entry recorded on the first day of the current accounting period is exactly the same as the related adjusting entry from the last day of the prior accounting period.

Accepted Answer

A) True 
 B)False  False

Question 8

The following information is available from the records of LoopTech, Inc. On January 1, Common Stock had a balance of $50,000, and Retained Earnings had a balance of $342,500. During the year, no additional common stock was issued, and $25,000 of dividends were paid. For the year ended December 31, LoopTech reported a net loss of $38,700. Prepare a statement of stockholders' equity for the year ended December 31.

Accepted Answer

The answer of The following information is available from the...

Question 9

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Accepted Answer

A) True 
 B)False  True

Question 10

Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin Company's current ratio is

Accepted Answer

A)   1.95
B)   1.18
C)   1.14
D)   1.42E) B) and D)
F) A) and B)

Question 11

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Accepted Answer

A) True 
 B)False

Question 12

You evaluate loan requests as part of your job at Eastwood National Bank. One loan request you received is from Surfer Dude Supplies, a small company. Richard Tracy, the CEO, is requesting $105,000 and brings you a trial balance (or statement of accounts) for his first year of operations ended December 31.
​
While you are willing to work with Richard, how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?

Accepted Answer

A set of financial statements provides useful information concerning the economic condition of a company. For example, the balance sheet describes the financial condition of the company as of a given date and is useful in assessing the company's financial soundness and liquidity. The income statement describes the results of operations for a period and indicates the profitability of the company. The statement of stockholders' equity describes the changes in the stockholders' interest in the company for a period. Each of these statements is useful in evaluating whether to extend credit to the company.

Question 13

After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

The answer of The following accounts appear in an adjusted...

Question 15

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

Accepted Answer

A)   debit Wages Expense and credit Wages Payable.
B)   debit Cash and credit Wages Expense.
C)   debit Miscellaneous Expense and credit Wages Expense.
D)   debit Wages Payable and credit Wages Expense.E) All of the above
F) B) and D)

Question 16

Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.  ​
Prepare the entry required to close the revenue accounts at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings. Below...

Question 17

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) None of the above
F) All of the above

Question 18

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) B) and C)
F) A) and D)

Question 19

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.:  ​
Prepare an income statement.

Accepted Answer

The answer of The following accounts were taken from the...

Question 20

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 B)
F) All of the above

Exam 4: The Accounting Cycle

Journalize the reversing entry on January 1 of the current year for the following adjusting journal entry from the prior year:

Correct Answer
verified
The reversing entry ...
View Answer

Explain how net income or loss is determined by using the end-of-period spreadsheets.

Correct Answer
verified
The difference between the debits and cr...
View Answer

Of the following steps of the accounting cycle, which step should be completed last?

Correct Answer
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Which one of the fixed asset accounts listed below will not have a related contra asset account?

Correct Answer
verified

A business's current assets divided by its current liabilities is equal to its

Correct Answer
verified

Correct Answer
verified

A reversing entry recorded on the first day of the current accounting period is exactly the same as the related adjusting entry from the last day of the prior accounting period.

Correct Answer
verified
False

Correct Answer
verified

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Correct Answer
verified
True

Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin Company's current ratio is

Correct Answer
verified

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Correct Answer
verified

After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Correct Answer
verified

Correct Answer
verified

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

Correct Answer
verified

Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31. Prepare the entry required to close the revenue accounts at the end of the period.

Correct Answer
verified

Unearned Fees appear on the

Correct Answer
verified

The classified balance sheet will show which liability subsections?

Correct Answer
verified

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.: Prepare an income statement.

Correct Answer
verified

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

Correct Answer
verified

Exam 4: The Accounting Cycle

Journalize the reversing entry on January 1 of the current year for the following ​adjusting journal entry from the prior year: ​ ​

Correct AnswerverifiedThe reversing entry ...View AnswerShow Answer

Explain how net income or loss is determined by using the end-of-period spreadsheets.

Correct AnswerverifiedThe difference between the debits and cr...View AnswerShow Answer

Of the following steps of the accounting cycle, which step should be completed last?

Correct AnswerverifiedShow Answer

Which one of the fixed asset accounts listed below will not have a related contra asset account?

Correct AnswerverifiedShow Answer

A business's current assets divided by its current liabilities is equal to its

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A reversing entry recorded on the first day of the current accounting period is exactly the same as the related adjusting entry from the last day of the prior accounting period.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Correct AnswerverifiedTrue

Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin Company's current ratio is

Correct AnswerverifiedShow Answer

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Correct AnswerverifiedShow Answer

After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

Correct AnswerverifiedShow Answer

Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31. ​ Prepare the entry required to close the revenue accounts at the end of the period.

Correct AnswerverifiedShow Answer

Unearned Fees appear on the

Correct AnswerverifiedShow Answer

The classified balance sheet will show which liability subsections?

Correct AnswerverifiedShow Answer

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.: ​ Prepare an income statement.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Journalize the reversing entry on January 1 of the current year for the following adjusting journal entry from the prior year:

Correct Answer
verified
The reversing entry ...
View Answer

Correct Answer
verified
The difference between the debits and cr...
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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False

Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31. Prepare the entry required to close the revenue accounts at the end of the period.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.: Prepare an income statement.

Correct Answer
verified

Correct Answer
verified