Question 1

A partially completed work sheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet and statement of owner's equity columns.

Accepted Answer

The answer of A partially completed work sheet is shown...

Question 2

Revenue accounts should begin each accounting period with zero balances.

Accepted Answer

A) True 
 B)False

Question 3

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Accepted Answer

A) True 
 B)False

Question 4

The accounting cycle refers to the sequence of steps in preparing the work sheet.

Accepted Answer

A) True 
 B)False

Question 5

A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.

Accepted Answer

A) True 
 B)False

Question 6

The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $750.The Adjustments columns show that $425 of these supplies were used during the period.The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

Accepted Answer

A)  $325 debit.
B)  $325 credit.
C)  $425 debit.
D)  $750 debit.
E)  $750 credit.F) A) and C)
G) C) and D)

Question 7

Which of the following is the usual final step in the accounting cycle?

Accepted Answer

A)  Journalizing transactions.
B)  Preparing an adjusted trial balance.
C)  Preparing a post-closing trial balance.
D)  Preparing the financial statements.
E)  Preparing a work sheet.F) C) and E)
G) B) and D)

Question 8

When closing entries are made:

Accepted Answer

A)  All ledger accounts are closed to start the new accounting period.
B)  All temporary accounts are closed but not the permanent accounts.
C)  All real accounts are closed but not the nominal accounts.
D)  All permanent accounts are closed but not the nominal accounts.
E)  All balance sheet accounts are closed.F) B) and E)
G) B) and D)

Question 9

The usual order for the asset section of a classified balance sheet is:

Accepted Answer

A)  Current assets, prepaid expenses, long-term investments, intangible assets.
B)  Long-term investments, current assets, plant assets, intangible assets.
C)  Current assets, long-term investments, plant assets, intangible assets.
D)  Intangible assets, current assets, long-term investments, plant assets.
E)  Plant assets, intangible assets, long-term investments, current assets.F) C) and D)
G) B) and E)

Question 10

List the steps in the accounting cycle.

Accepted Answer

The accounting cycle consists of ten ste...

Question 11

Explain the difference between temporary and permanent accounts.

Accepted Answer

Temporary,or nominal,accounts accumulate...

Question 12

An unclassified balance sheet provides more information to users than a classified balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

Based on the following information from Raptor Company's balance sheet,calculate the current ratio.

Accepted Answer

A)  .44.
B)  3.51.
C)  3.33.
D)  1.06.
E)  2.23.F) A) and C)
G) B) and D)

Question 14

Bentley records adjusting entries at its December 31 year end.At December 31,employees had earned $12,000 of unpaid and unrecorded salaries.The next payday is January 3,at which time $30,000 will be paid.Prepare the journal on January 3 to record payment assuming the correct adjusting and reversing entries were made on December 31 and January 1.

Accepted Answer

A)  Debit Salaries expense $12,000; debit Salaries payable $18,000; credit Cash $30,000.
B)  Debit Salaries expense $30,000; credit Cash $30,000.
C)  Debit Salaries payable $30,000; credit Cash $30,000.
D)  Debit Salaries expense $18,000, debit Salaries payable $12,000; credit Cash $30,000.
E)  Debit Salaries expense $18,000; credit Cash $18,000.F) None of the above
G) D) and E)

Question 15

Dina Kader withdrew a total of $35,000 from her business during the current year.The entry needed to close the withdrawals account is:

Accepted Answer

A)  Debit Income Summary and credit Cash for $35,000.
B)  Debit Dina Kader, Withdrawals and credit Cash for $35,000.
C)  Debit Income Summary and credit Dina Kader, Withdrawals for $35,000.
D)  Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000.
E)  Debit Dina Kader, Withdrawals and credit Dina Kader, Capital for $35,000.F) A) and E)
G) A) and C)

Question 16

The last four steps in the accounting cycle include preparing the adjusted trial balance,preparing financial statements and recording closing and adjusting entries.

Accepted Answer

A) True 
 B)False

Question 17

List and explain the steps in preparing a 10-column worksheet.

Accepted Answer

1.Enter the unadjusted trial balance.Lis...

Question 18

Permanent accounts carry their balances into the next accounting period.Moreover,asset,liability and revenue accounts are not closed as long as a company continues in business.

Accepted Answer

A) True 
 B)False

Question 19

Reversing entries:

Accepted Answer

A)  are necessary when journal entries have been incorrectly recorded.
B)  are a required step in the accounting cycle.
C)  will often result in abnormal account balances in some accounts.
D)  are required only if the company uses accounting software to record journal entries.
E)  must be made before preparing the post-closing trial balance.F) C) and D)
G) A) and C)

Question 20

Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the prior accounting period.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $750.The Adjustments columns show that $425 of these supplies were used during the period.The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

Correct Answer
verified

The accounting cycle refers to the sequence of steps in preparing the work sheet.

Correct Answer
verified

A partially completed work sheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet and statement of owner's equity columns.

Correct Answer
verified

Dina Kader withdrew a total of $35,000 from her business during the current year.The entry needed to close the withdrawals account is:

Correct Answer
verified

Reversing entries:

Correct Answer
verified

A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.

Correct Answer
verified

Based on the following information from Raptor Company's balance sheet,calculate the current ratio.

Correct Answer
verified

Explain the difference between temporary and permanent accounts.

Correct Answer
verified
Temporary,or nominal,accounts accumulate...
View Answer

An unclassified balance sheet provides more information to users than a classified balance sheet.

Correct Answer
verified

Revenue accounts should begin each accounting period with zero balances.

Correct Answer
verified

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Correct Answer
verified

Correct Answer
verified

The last four steps in the accounting cycle include preparing the adjusted trial balance,preparing financial statements and recording closing and adjusting entries.

Correct Answer
verified

The usual order for the asset section of a classified balance sheet is:

Correct Answer
verified

Permanent accounts carry their balances into the next accounting period.Moreover,asset,liability and revenue accounts are not closed as long as a company continues in business.

Correct Answer
verified

When closing entries are made:

Correct Answer
verified

Which of the following is the usual final step in the accounting cycle?

Correct Answer
verified

List the steps in the accounting cycle.

Correct Answer
verified
The accounting cycle consists of ten ste...
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Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the prior accounting period.

Correct Answer
verified

List and explain the steps in preparing a 10-column worksheet.

Correct Answer
verified
1.Enter the unadjusted trial balance.Lis...
View Answer

Exam 4: Completing the Accounting Cycle

The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $750.The Adjustments columns show that $425 of these supplies were used during the period.The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

Correct AnswerverifiedShow Answer

The accounting cycle refers to the sequence of steps in preparing the work sheet.

Correct AnswerverifiedShow Answer

A partially completed work sheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet and statement of owner's equity columns.

Correct AnswerverifiedShow Answer

Dina Kader withdrew a total of $35,000 from her business during the current year.The entry needed to close the withdrawals account is:

Correct AnswerverifiedShow Answer

Reversing entries:

Correct AnswerverifiedShow Answer

A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.

Correct AnswerverifiedShow Answer

Based on the following information from Raptor Company's balance sheet,calculate the current ratio.

Correct AnswerverifiedShow Answer

Explain the difference between temporary and permanent accounts.

Correct AnswerverifiedTemporary,or nominal,accounts accumulate...View AnswerShow Answer

An unclassified balance sheet provides more information to users than a classified balance sheet.

Correct AnswerverifiedShow Answer

Revenue accounts should begin each accounting period with zero balances.

Correct AnswerverifiedShow Answer

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The last four steps in the accounting cycle include preparing the adjusted trial balance,preparing financial statements and recording closing and adjusting entries.

Correct AnswerverifiedShow Answer

The usual order for the asset section of a classified balance sheet is:

Correct AnswerverifiedShow Answer

Permanent accounts carry their balances into the next accounting period.Moreover,asset,liability and revenue accounts are not closed as long as a company continues in business.

Correct AnswerverifiedShow Answer

When closing entries are made:

Correct AnswerverifiedShow Answer

Which of the following is the usual final step in the accounting cycle?

Correct AnswerverifiedShow Answer

List the steps in the accounting cycle.

Correct AnswerverifiedThe accounting cycle consists of ten ste...View AnswerShow Answer

Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the prior accounting period.

Correct AnswerverifiedShow Answer

List and explain the steps in preparing a 10-column worksheet.

Correct Answerverified1.Enter the unadjusted trial balance.Lis...View AnswerShow 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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Temporary,or nominal,accounts accumulate...
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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Correct Answer
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Correct Answer
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The accounting cycle consists of ten ste...
View Answer

Correct Answer
verified

Correct Answer
verified
1.Enter the unadjusted trial balance.Lis...
View Answer