Question 1

The income statement is prepared from the:

Accepted Answer

A)  Post-Closing Trial Balance. 
B)  worksheet. 
C)  general journal. 
D)  unadjusted Trial Balance. 
A)  Post-Closing Trial Balance. 
B)  worksheet. 
C)  general journal. 
D)  unadjusted Trial Balance.

Question 2

Plant, Property and Equipment is usually listed:

Accepted Answer

A)  in alphabetical order. 
B)  in order of liquidity. 
C)  by how long they will last. 
D)  lowest to highest dollar values. 
A)  in alphabetical order. 
B)  in order of liquidity. 
C)  by how long they will last. 
D)  lowest to highest dollar values.

Question 3

The goal of closing entries does NOT include:

Accepted Answer

A)  to clear revenue and expense accounts. 
B)  to update the Capital account balance. 
C)  to clear the Withdrawals account. 
D)  to clear the Cash account. 
A)  to clear revenue and expense accounts. 
B)  to update the Capital account balance. 
C)  to clear the Withdrawals account. 
D)  to clear the Cash account.

Question 4

Gross Profit equals:

Accepted Answer

A)  Net sales - Net Purchases. 
B)  Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold. 
C)  Cost of Goods Sold - Other Expenses. 
D)  Cost of Goods Sold - Operating Expenses. 
A)  Net sales - Net Purchases. 
B)  Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold. 
C)  Cost of Goods Sold - Other Expenses. 
D)  Cost of Goods Sold - Operating Expenses.

Question 5

Which of the following is NOT an operating expense?

Accepted Answer

A)  Payroll Tax Expense 
B)  Inventory 
C)  Supplies Expense 
D)  Depreciation Expense - Office Equipment 
A)  Payroll Tax Expense 
B)  Inventory 
C)  Supplies Expense 
D)  Depreciation Expense - Office Equipment

Question 6

Which of the following is an operating expense?

Accepted Answer

A)  Interest Expense 
B)  Purchases Returns and Allowances 
C)  Salaries Expense 
D)  Prepaid Insurance Expense 
A)  Interest Expense 
B)  Purchases Returns and Allowances 
C)  Salaries Expense 
D)  Prepaid Insurance Expense

Question 7

Which of the following adjustments may be reversed?

Accepted Answer

A)  The adjustment to Record Depreciation Expense 
B)  The adjustment to Allocate Prepaid Insurance to the current period 
C)  The adjustment to Accrue Salaries Payable 
D)  The adjustment for Petty Cash replenishment 
A)  The adjustment to Record Depreciation Expense 
B)  The adjustment to Allocate Prepaid Insurance to the current period 
C)  The adjustment to Accrue Salaries Payable 
D)  The adjustment for Petty Cash replenishment

Question 8

Prepare the closing entries from the following information on the PC Pros Company worksheet income statement columns.

Accepted Answer

The answer of Prepare the closing entries from the following...

Question 9

In what category on a classified balance sheet is Accounts Receivable found?

Accepted Answer

A)  Plant, Property and Equipment 
B)  Current Liabilities 
C)  Current Assets 
D)  Long Term Assets 
A)  Plant, Property and Equipment 
B)  Current Liabilities 
C)  Current Assets 
D)  Long Term Assets

Question 10

In what category on a classified balance sheet is Store Equipment found?

Accepted Answer

A)  Plant and Equipment 
B)  Current Liabilities 
C)  Current Assets 
D)  Long Term Liabilities 
A)  Plant and Equipment 
B)  Current Liabilities 
C)  Current Assets 
D)  Long Term Liabilities

Question 11

Land is listed first under Plant, Property and Equipment.

Accepted Answer

A) True 
 B)False

Question 12

The first step in the closing process is to:

Accepted Answer

A)  close all balances on the income statement debit column of the worksheet except Income Summary. 
B)  transfer the balance from the Income Summary Account to the Capital Account. 
C)  close all balances on the income statement credit column of the worksheet except Income Summary. 
D)  transfer the balance of the Owner's Withdrawals Account to Capital. 
A)  close all balances on the income statement debit column of the worksheet except Income Summary. 
B)  transfer the balance from the Income Summary Account to the Capital Account. 
C)  close all balances on the income statement credit column of the worksheet except Income Summary. 
D)  transfer the balance of the Owner's Withdrawals Account to Capital.

Question 13

The entry to close the Income Summary account to Capital was omitted, and there was a net income for the period. This error would cause:

Accepted Answer

A)  the Capital account to be understated. 
B)  Inventory to be overstated. 
C)  Revenue to be understated. 
D)  the Capital account to be overstated. 
A)  the Capital account to be understated. 
B)  Inventory to be overstated. 
C)  Revenue to be understated. 
D)  the Capital account to be overstated.

Question 14

Adjusting entries from the worksheet:

Accepted Answer

A)  are journalized and posted to the ledger. 
B)  are posted directly to the ledger. 
C)  are closed to the Income Summary account. 
D)  affect only income statement accounts. 
A)  are journalized and posted to the ledger. 
B)  are posted directly to the ledger. 
C)  are closed to the Income Summary account. 
D)  affect only income statement accounts.

Question 15

The entry to close the Withdrawals account to Capital was omitted. This error would cause:

Accepted Answer

A)  the Capital account to be understated. 
B)  Withdrawal to be understated. 
C)  Revenue to be understated. 
D)  the Capital account to be overstated. 
A)  the Capital account to be understated. 
B)  Withdrawal to be understated. 
C)  Revenue to be understated. 
D)  the Capital account to be overstated.

Question 16

The post-closing trial balance would include Supplies Expense and Purchases.

Accepted Answer

A) True 
 B)False

Question 17

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 18

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 19

The entry to close the owner's Withdrawals account will include which of the following?

Accepted Answer

A)  A debit to Income Summary 
B)  A credit to Capital 
C)  A credit to Withdrawals 
D)  A debit to Withdrawals 
A)  A debit to Income Summary 
B)  A credit to Capital 
C)  A credit to Withdrawals 
D)  A debit to Withdrawals

Question 20

Net Purchases + Purchases Returns and Allowances + Purchase Discounts equals:

Accepted Answer

A)  Net Loss. 
B)  Net Income. 
C)  Gross Profit. 
D)  Gross Purchases. 
A)  Net Loss. 
B)  Net Income. 
C)  Gross Profit. 
D)  Gross Purchases.

Exam 12: Completion of the Accounting Cycle for a Merchandise Company

The income statement is prepared from the:

Plant, Property and Equipment is usually listed:

The goal of closing entries does NOT include:

Gross Profit equals:

Which of the following is NOT an operating expense?

Which of the following is an operating expense?

Which of the following adjustments may be reversed?

Prepare the closing entries from the following information on the PC Pros Company worksheet income statement columns.

In what category on a classified balance sheet is Accounts Receivable found?

In what category on a classified balance sheet is Store Equipment found?

Land is listed first under Plant, Property and Equipment.

The first step in the closing process is to:

The entry to close the Income Summary account to Capital was omitted, and there was a net income for the period. This error would cause:

Adjusting entries from the worksheet:

The entry to close the Withdrawals account to Capital was omitted. This error would cause:

The post-closing trial balance would include Supplies Expense and Purchases.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

The entry to close the owner's Withdrawals account will include which of the following?

Net Purchases + Purchases Returns and Allowances + Purchase Discounts equals:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters