Question 1

A work sheet includes columns for

Accepted Answer

A)   adjusting entries
B)   closing entries
C)   reversing entries
D)   adjusting and closing entriesE) All of the above
F) A) and B)

Question 2

Which of the accounts below would be closed by posting a debit to the account?

Accepted Answer

A)   Unearned Revenue
B)   Fees Earned
C)   Dividends
D)   Miscellaneous ExpenseE) A) and D)
F) B) and C)

Question 3

If working papers are not considered part of the formal accounting records, then why are they used?

Accepted Answer

Working papers are tools used ...

Question 4

In the accounting cycle, the last step is

Accepted Answer

A)   preparing the financial statements
B)   journalizing and posting the adjusting entries
C)   preparing a post-closing trial balance
D)   journalizing and posting the closing entriesE) None of the above
F) A) and B)

Question 5

The Income Statement columns in the work sheet show that debits total $55,800 and credits total $62,705. What does this information mean to the accountant?

Accepted Answer

A)   Net income is equal to $6,905.
B)   Net loss is equal to $6,905.
C)   The accounts are out of balance, indicating an error has been made.
D)   The accounts have not been updated.E) A) and B)
F) A) and C)

Question 6

Current liabilities are those liabilities that

Accepted Answer

A)   will be paid in less than one year
B)   are due to be paid in 5 to 10 years
C)   are due to be paid in more than one year
D)   are owed to the stockholders and will never be paidE) All of the above
F) A) and B)

Question 7

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Accepted Answer

A)   Post-closing, unadjusted, adjusted
B)   Unadjusted, post-closing, adjusted
C)   Unadjusted, adjusted, post-closing
D)   Post-closing, adjusted, unadjustedE) A) and B)
F) A) and C)

Question 8

When accounts do appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

Accepted Answer

A) True 
 B)False

Question 9

The most important output of the accounting cycle is the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

Accepted Answer

A)   is the amount of net income or loss
B)   indicates there is an error on the work sheet
C)   is not unusual when preparing the work sheet
D)   is the net difference between revenue, expenses, and dividendsE) C) and D)
F) A) and B)

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 work sheet.
B)   The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet.
C)   The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet.
D)   Cash inflows exceeded cash outflows.E) A) and B)
F) A) and C)

Question 12

All companies must use a calendar year as their fiscal year.

Accepted Answer

A) True 
 B)False

Question 13

The income statement will include

Accepted Answer

A)   revenues less expenses (ordered largest to smallest amount)  with miscellaneous expense listed last
B)   revenues less expenses (ordered smallest to largest amounts)  with miscellaneous expense listed last
C)   revenues less expenses (ordered in alphabetical order) 
D)   revenues less expenses (order is not important) E) All of the above
F) A) and C)

Question 14

Office Equipment is an example of a current asset account.

Accepted Answer

A) True 
 B)False

Question 15

An indication that the work sheet columns are in balance and the work sheet is completed is

Accepted Answer

A)   the word "Total" is written at the bottom of each pair of columns
B)   each pair of columns is double underlined
C)   each pair of columns has the totals circled
D)   the final figures are written in inkE) B) and C)
F) A) and D)

Question 16

The accounting cycle begins with preparing an unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

Net income is shown on the work sheet in the Income Statement Debit column and the Balance Sheet Credit column.

Accepted Answer

A) True 
 B)False

Question 19

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows:
  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. It's...

Question 20

The income summary account is also known as the clearing account.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When accounts do appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

Correct AnswerverifiedShow Answer

The most important output of the accounting cycle is the financial statements.

Correct AnswerverifiedShow Answer

Current liabilities are those liabilities that

Correct AnswerverifiedShow Answer

In the accounting cycle, the last step is

Correct AnswerverifiedShow Answer

The income statement will include

Correct AnswerverifiedShow Answer

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

Correct AnswerverifiedShow Answer

All companies must use a calendar year as their fiscal year.

Correct AnswerverifiedShow Answer

The accounting cycle begins with preparing an unadjusted trial balance.

Correct AnswerverifiedShow Answer

Which of the accounts below would be closed by posting a debit to the account?

Correct AnswerverifiedShow Answer

A work sheet includes columns for

Correct AnswerverifiedShow Answer

The income summary account is also known as the clearing account.

Correct AnswerverifiedShow Answer

Net income is shown on the work sheet in the Income Statement Debit column and the Balance Sheet Credit column.

Correct AnswerverifiedShow Answer

If working papers are not considered part of the formal accounting records, then why are they used?

Correct AnswerverifiedWorking papers are tools used ...View AnswerShow Answer

An indication that the work sheet columns are in balance and the work sheet is completed is

Correct AnswerverifiedShow Answer

The Income Statement columns in the work sheet show that debits total $55,800 and credits total $62,705. What does this information mean to the accountant?

Correct AnswerverifiedShow Answer

Office Equipment is an example of a current asset account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the revenue accounts at the end of the period.

Correct AnswerverifiedShow Answer

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Working papers are tools used ...
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