Question 1

The use of reversing entries is

Accepted Answer

A) required. 
B) required whenever adjusting entries are omitted. 
C) optional. 
D) optional unless computerized accounting systems are used. 
A) required. 
B) required whenever adjusting entries are omitted. 
C) optional. 
D) optional unless computerized accounting systems are used.

Question 2

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

Accepted Answer

A) net income of $21,720 
B) net loss of $21,720 
C) the accounts are out of balance, indicating an error has been made 
D) the accounts have not been updated 
A) net income of $21,720 
B) net loss of $21,720 
C) the accounts are out of balance, indicating an error has been made 
D) the accounts have not been updated

Question 3

The balance sheet should be prepared

Accepted Answer

A) before the income statement and the statement of stockholders' equity 
B) before the income statement and after the statement of stockholders' equity 
C) after the income statement and the statement of stockholders' equity 
D) after the income statement and before the statement of stockholders' equity 
A) before the income statement and the statement of stockholders' equity 
B) before the income statement and after the statement of stockholders' equity 
C) after the income statement and the statement of stockholders' equity 
D) after the income statement and before the statement of stockholders' equity

Question 4

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)?

Accepted Answer

A) analyze and record transactions, post transactions to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries 
B) prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger 
C) analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance 
D) prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries 
A) analyze and record transactions, post transactions to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries 
B) prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger 
C) analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance 
D) prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries

Question 5

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 6

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Accepted Answer

A) is the amount of net income or loss 
B) indicates there is an error on the end-of-period spreadsheet 
C) is the amount of retained earnings 
D) is the difference between revenue and expenses 
A) is the amount of net income or loss 
B) indicates there is an error on the end-of-period spreadsheet 
C) is the amount of retained earnings 
D) is the difference between revenue and expenses

Question 7

The totals of the Adjusted Trial Balance columns on an end-of-period spreadsheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Accepted Answer

A) True 
 B)False

Question 8

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Accepted Answer

A) verify that the debits and credits are in balance 
B) verify that the net income correctly flows into the statement of stockholders' equity from the income statement 
C) verify that the net income (loss) is correct for the period 
D) verify the correct flow of accounts into the financial statements 
A) verify that the debits and credits are in balance 
B) verify that the net income correctly flows into the statement of stockholders' equity from the income statement 
C) verify that the net income (loss) is correct for the period 
D) verify the correct flow of accounts into the financial statements

Question 9

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

Question 10

Net income appears on the end-of-period spreadsheet in the

Accepted Answer

A) debit column of the Balance Sheet columns 
B) debit column of the Adjustments columns 
C) debit column of the Income Statement columns 
D) credit column of the Income Statement columns 
A) debit column of the Balance Sheet columns 
B) debit column of the Adjustments columns 
C) debit column of the Income Statement columns 
D) credit column of the Income Statement columns

Question 11

A post-closing trial balance should be prepared before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Match each journal entry that follows with one of the types of journal entries (a-c) below.
-Retained Earnings 650
Dividends 650
A)Journal entries
B)Adjusting journal entries
C)Closing journal entries

Accepted Answer

The answer of Match each journal entry that follows with...

Question 14

The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each balance should be extended to (a) an Income Statement column or (b) a Balance Sheet column.​
1. Retained Earnings
2. Common Stock
3. Depreciation Expense
4. Accumulated Depreciation
5. Fees Earned
6. Unearned Fees
7. Supplies
8. Supplies Expense

Accepted Answer

1. Balance Sheet column
2. Balance Sheet

Question 15

Which of the following statements is true?

Accepted Answer

A) The balance in the revenue accounts after closing agrees with the revenue shown on the income statement. 
B) The balance in the dividends account after closing agrees with the amount of dividends reported on the statement of stockholders' equity. 
C) The balance of Retained Earnings after closing agrees with the amount reported on the statement of stockholders' equity and the balance sheet. 
D) The trial balance taken after closing can be used to prepare the statement of stockholders' equity and the balance sheet. 
A) The balance in the revenue accounts after closing agrees with the revenue shown on the income statement. 
B) The balance in the dividends account after closing agrees with the amount of dividends reported on the statement of stockholders' equity. 
C) The balance of Retained Earnings after closing agrees with the amount reported on the statement of stockholders' equity and the balance sheet. 
D) The trial balance taken after closing can be used to prepare the statement of stockholders' equity and the balance sheet.

Question 16

Which of the following accounts will be credited to close it?

Accepted Answer

A) Rent Revenues 
B) Fees Earned 
C) Accumulated Depreciation 
D) Depreciation Expense 
A) Rent Revenues 
B) Fees Earned 
C) Accumulated Depreciation 
D) Depreciation Expense

Question 17

Match each journal entry that follows with one of the types of journal entries (a-c) below.
-Accounts Receivable 325
Fees Earned 325
(Customer billed for services performed.)
A)Journal entries
B)Adjusting journal entries
C)Closing journal entries

Accepted Answer

The answer of Match each journal entry that follows with...

Question 18

On the basis of the following data taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for the year ended March 31 for Banes Domino's Corporation, journalize the two closing entries.

Accepted Answer

The answer of On the basis of the following data...

Question 19

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Accepted Answer

A) True 
 B)False

Question 20

The classified balance sheet will show which asset subsections?

Accepted Answer

A) current assets and other equity 
B) current assets and property, plant, and equipment 
C) current liabilities and short-term assets 
D) other revenues and property, plant and equipment 
A) current assets and other equity 
B) current assets and property, plant, and equipment 
C) current liabilities and short-term assets 
D) other revenues and property, plant and equipment

Exam 4: The Accounting Cycle

The use of reversing entries is

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

The balance sheet should be prepared

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)?

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

The totals of the Adjusted Trial Balance columns on an end-of-period spreadsheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Once the adjusting entries are posted, the adjusted trial balance is prepared to

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.

Net income appears on the end-of-period spreadsheet in the

A post-closing trial balance should be prepared before the financial statements are prepared.

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

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Retained Earnings 650 Dividends 650 A)Journal entries B)Adjusting journal entries C)Closing journal entries

Which of the following statements is true?

Which of the following accounts will be credited to close it?

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.) A)Journal entries B)Adjusting journal entries C)Closing journal entries

On the basis of the following data taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for the year ended March 31 for Banes Domino's Corporation, journalize the two closing entries.

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

The classified balance sheet will show which asset subsections?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

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