Question 1

On which financial statement will Income Summary be shown?

Accepted Answer

A)   Statement of Owner's Equity
B)   Balance Sheet
C)   Income Statement
D)   No financial statementE) A) and C)
F) A) and D)

Question 2

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

Accepted Answer

A)   neither net income or loss can be calculated because it is found on the income statement
B)   the company has a net loss of $3,415 for the period
C)   the company has a net income of $3,415 for the period
D)   The amounts are out of balance and need to be correctedE) B) and D)
F) All of the above

Question 3

The Balance Sheet should be prepared

Accepted Answer

A)   before the income statement and the statement of owner's equity
B)   before the income statement and after the statement of owner's equity
C)   after the income statement and the statement of owner's equity
D)   after the income statement and before the statement of owner's equityE) B) and C)
F) A) and D)

Question 4

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Accepted Answer

A) True 
 B)False

Question 5

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Accepted Answer

A) True 
 B)False

Question 6

Each of the following transactions for Morrison Company requires an adjusting entry, which if omitted, will overstate or understate assets, liabilities, owner's equity, revenues, expenses, or net income. Indicate the amount and direction of the misstatement that would result if the end of period adjusting entry suggested by the transaction was omitted. Place your results in the table following the transactions and use (+) for overstate, (-) for understate, and (NE) for no effect.
1. Morrison purchased supplies on December 1 for $900. On December 31, $350 of supplies were on hand.
2. Prepaid insurance had a debit balance of $5,400 on December 1, which represented a prepayment for 2 years of insurance.
3. The unearned rent revenue account has a credit balance of $390 on December 1, which represents 3 months rent.

Accepted Answer

The answer of Each of the following transactions for Morrison...

Question 7

Hakik Enterprises offers rug cleaning services to business clients. Below are the adjustments data for the year ended July 31, 2010. REQUIRED: Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.
Adjustments:
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Please record one month's depreciation.
b) Accrued Wages $2.
c) Unused supplies on hand $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

Accepted Answer

The answer of Hakik Enterprises offers rug cleaning services to...

Question 8

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) All of the above
F) None of the above

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

Question 10

Notes Receivable due in 350 days appear on the

Accepted Answer

A)   balance sheet in the current assets section
B)   balance sheet in the fixed assets section
C)   balance sheet in the current liabilities section
D)   income statement as an expenseE) B) and C)
F) All of the above

Question 11

Assets, liabilities, and owner's capital are real accounts and do get closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 12

List and describe the purpose of the four closing entries.
1. Close revenues to income summary.
2. Close expenses to income summary.
3. Close income summary to capital account.
4. Close drawing account to capital account.

Accepted Answer

At the beginning of the next period, tem...

Question 13

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 the amount of retained earnings
D)   is the difference between revenue and expensesE) B) and C)
F) None of the above

Question 14

Which of the following accounts ordinarily appears in the post-closing trial balance?

Accepted Answer

A)   Fees Earned
B)   Supplies Expense
C)   Zane White, Drawing
D)   Unearned RentE) A) and B)
F) A) and C)

Question 15

Prepaid insurance is reported on the balance sheet as a

Accepted Answer

A)   current asset
B)   fixed asset
C)   current liability
D)   long-term liabilityE) C) and D)
F) None of the above

Question 16

The income statement is prepared from:

Accepted Answer

A)   the adjusted trial balance.
B)   the income statement columns of the work sheet.
C)   either the adjusted trial balance or the income statement columns of the work sheet.
D)   both the adjusted trial balance and the income statement columns of the work sheet.E) A) and B)
F) All of the above

Question 17

A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 18

Use the following worksheet to answer the following questions.  Based on the preceding trial balance, the entry to close

Accepted Answer

A)   debit C. Finley, Capital $3,000, credit C. Finley, Drawing $3,000
B)   debit C. Finley, Capital $12,000, credit C. Finley, Drawing $12,000
C)   debit C. Finley, Drawing $3,000; credit C. Finley, Capital $3,000
D)   debit C. Finley, Drawing $12,000; credit C. Finley, Capital $12,000E) B) and D)
F) B) and C)

Question 19

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014.  The entry required to close the expense accounts at the end of the period includes a:

Accepted Answer

A)   a debit to Income Summary for $35,520
B)   a credit to Income Summary for $35,520
C)   a debit to Income Summary for $33,520
D)   a credit to Income Summary for $33,520E) A) and C)
F) B) and D)

Question 20

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014.  The entry required to close the revenue accounts at the end of the period includes a:

Accepted Answer

A)   debit to Income Summary for $37,000
B)   credit to Income Summary for $38,300
C)   debit to Income Summary for $38,200
D)   credit to Income Summary for $37,000E) All of the above
F) None of the above

Exam 4: Completing the Accounting Cycle

In the accounting cycle, the last step is

Correct Answer
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Correct Answer
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Prepaid insurance is reported on the balance sheet as a

Correct Answer
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The income statement is prepared from:

Correct Answer
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Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014. The entry required to close the expense accounts at the end of the period includes a:

Correct Answer
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List and describe the purpose of the four closing entries. 1. Close revenues to income summary. 2. Close expenses to income summary. 3. Close income summary to capital account. 4. Close drawing account to capital account.

Correct Answer
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At the beginning of the next period, tem...
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Which of the following accounts ordinarily appears in the post-closing trial balance?

Correct Answer
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After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

Correct Answer
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The Balance Sheet should be prepared

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

Correct Answer
verified

Notes Receivable due in 350 days appear on the

Correct Answer
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Use the following worksheet to answer the following questions. Based on the preceding trial balance, the entry to close

Correct Answer
verified

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014. The entry required to close the revenue accounts at the end of the period includes a:

Correct Answer
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On which financial statement will Income Summary be shown?

Correct Answer
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A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Correct Answer
verified

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Correct Answer
verified

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Correct Answer
verified

Assets, liabilities, and owner's capital are real accounts and do get closed at the end of the period.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

In the accounting cycle, the last step is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Prepaid insurance is reported on the balance sheet as a

Correct AnswerverifiedShow Answer

The income statement is prepared from:

Correct AnswerverifiedShow Answer

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014. The entry required to close the expense accounts at the end of the period includes a:

Correct AnswerverifiedShow Answer

List and describe the purpose of the four closing entries. 1. Close revenues to income summary. 2. Close expenses to income summary. 3. Close income summary to capital account. 4. Close drawing account to capital account.

Correct AnswerverifiedAt the beginning of the next period, tem...View AnswerShow Answer

Which of the following accounts ordinarily appears in the post-closing trial balance?

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

Correct AnswerverifiedShow Answer

The Balance Sheet should be prepared

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Notes Receivable due in 350 days appear on the

Correct AnswerverifiedShow Answer

Use the following worksheet to answer the following questions. Based on the preceding trial balance, the entry to close

Correct AnswerverifiedShow Answer

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014. The entry required to close the revenue accounts at the end of the period includes a:

Correct AnswerverifiedShow Answer

On which financial statement will Income Summary be shown?

Correct AnswerverifiedShow Answer

A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Correct AnswerverifiedShow Answer

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Correct AnswerverifiedShow Answer

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Correct AnswerverifiedShow Answer

Assets, liabilities, and owner's capital are real accounts and do get closed at the end of the period.

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

Correct AnswerverifiedShow Answer

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At the beginning of the next period, tem...
View Answer

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