Question 1

In analyzing accounts to determine which adjusting entries are necessary, accountants should determine

Accepted Answer

A)  Whether the amounts recorded for all assets and liabilities are correct 
B)  What revenue or expense adjustment is required 
C)  What accounts need debits or credits 
D)  All of these are correct 
A)  Whether the amounts recorded for all assets and liabilities are correct 
B)  What revenue or expense adjustment is required 
C)  What accounts need debits or credits 
D)  All of these are correct

Question 2

Mancheski and Sons Inc. reported net income of $45,600 in 2012. Carl, the company bookkeeper, neglected to make the necessary adjusting entries. The necessary adjustments are given below:

Accepted Answer

The answer of Mancheski and Sons Inc. reported net income...

Question 3

In the course of your examination of the books and records of Andelin Company for the year ending December 31, 2012, you find the following data:
  
Compute Andelin Company's net income for 2012 using cash-basis accounting.

Accepted Answer

Compute Andelin Comp

Question 4

When preparing its financial statements, a company is more concerned about which of the following?

Accepted Answer

A)  Assets and liabilities are not overstated 
B)  Assets and liabilities are not understated 
C)  Assets are not understated and liabilities are not overstated 
D)  Assets are not overstated and liabilities are not understated 
A)  Assets and liabilities are not overstated 
B)  Assets and liabilities are not understated 
C)  Assets are not understated and liabilities are not overstated 
D)  Assets are not overstated and liabilities are not understated

Question 5

The purpose of financial statement analysis is to

Accepted Answer

A)  Use the past performance to predict future performance. 
B)  Evaluate the current performance in order to identify problem areas. 
C)  Both use the past performance to predict future performance and evaluate the current performance in order to identify problem areas. 
D)  Neither use the past performance to predict future performance nor evaluate the current performance in order to identify problem areas. 
A)  Use the past performance to predict future performance. 
B)  Evaluate the current performance in order to identify problem areas. 
C)  Both use the past performance to predict future performance and evaluate the current performance in order to identify problem areas. 
D)  Neither use the past performance to predict future performance nor evaluate the current performance in order to identify problem areas.

Question 6

An expired asset is called a(n)

Accepted Answer

A)  Revenue 
B)  Expense 
C)  Retained earning 
D)  Cost 
A)  Revenue 
B)  Expense 
C)  Retained earning 
D)  Cost

Question 7

Scully Corporation purchased a three-year insurance policy on November 1 for $3,600. Assuming that Scully Corporation recorded the original transaction by debiting Prepaid Insurance, the adjusting entry on December 31 will include a

Accepted Answer

A)  Debit to Insurance Expense for $200 
B)  Credit to Prepaid Insurance for $100 
C)  Debit to Prepaid Insurance for $100 
D)  Credit to Cash for $200 
A)  Debit to Insurance Expense for $200 
B)  Credit to Prepaid Insurance for $100 
C)  Debit to Prepaid Insurance for $100 
D)  Credit to Cash for $200

Question 8

Which of the following statements about adjusting entries is NOT true?

Accepted Answer

A)  They are recorded on a daily basis as transactions occur. 
B)  They are posted at the end of an accounting period. 
C)  They do not affect the cash account. 
D)  They are not based on transactions. 
A)  They are recorded on a daily basis as transactions occur. 
B)  They are posted at the end of an accounting period. 
C)  They do not affect the cash account. 
D)  They are not based on transactions.

Question 9

The entry to close the expense accounts normally includes a

Accepted Answer

A)  Debit to each revenue account 
B)  Credit to each revenue account 
C)  Debit to each expense account 
D)  Credit to each expense account 
A)  Debit to each revenue account 
B)  Credit to each revenue account 
C)  Debit to each expense account 
D)  Credit to each expense account

Question 10

On April 1, Ciaunna Company paid $48,000 for two years rent and recorded the entire amount as a debit to Prepaid Rent. The adjusting entry on December 31 of that year would include a

Accepted Answer

A)  Credit to Rent Expense of $18,000 
B)  Credit to Prepaid Rent of $24,000 
C)  Debit to Rent Expense of $24,000 
D)  Debit to Rent Expense of $18,000 
A)  Credit to Rent Expense of $18,000 
B)  Credit to Prepaid Rent of $24,000 
C)  Debit to Rent Expense of $24,000 
D)  Debit to Rent Expense of $18,000

Question 11

Nona Corporation, a calendar-year company, had the following transactions during 2012:   Assuming cash-basis accounting for Nona Corporation, how much income should be reported on its 2012 income statement?

Accepted Answer

A)  $21,000 
B)  $27,000 
C)  $40,000 
D)  $41,200 
A)  $21,000 
B)  $27,000 
C)  $40,000 
D)  $41,200

Question 12

The following are a selection of account balances taken from the Adjusted Trial Balance of Cajon Corporation for December 31, 2012:
  
-Refer to Exhibit 4-1. Given the information above, Cajon Corporation had net income in 2012 of

Accepted Answer

A)  $150 
B)  $530 
C)  $330 
D)  $350 
A)  $150 
B)  $530 
C)  $330 
D)  $350

In analyzing accounts to determine which adjusting entries are necessary, accountants should determine

Mancheski and Sons Inc. reported net income of $45,600 in 2012. Carl, the company bookkeeper, neglected to make the necessary adjusting entries. The necessary adjustments are given below:

In the course of your examination of the books and records of Andelin Company for the year ending December 31, 2012, you find the following data: Compute Andelin Company's net income for 2012 using cash-basis accounting.

When preparing its financial statements, a company is more concerned about which of the following?

The purpose of financial statement analysis is to

An expired asset is called a(n)

Scully Corporation purchased a three-year insurance policy on November 1 for $3,600. Assuming that Scully Corporation recorded the original transaction by debiting Prepaid Insurance, the adjusting entry on December 31 will include a

Which of the following statements about adjusting entries is NOT true?

The entry to close the expense accounts normally includes a

On April 1, Ciaunna Company paid $48,000 for two years rent and recorded the entire amount as a debit to Prepaid Rent. The adjusting entry on December 31 of that year would include a

Nona Corporation, a calendar-year company, had the following transactions during 2012: Assuming cash-basis accounting for Nona Corporation, how much income should be reported on its 2012 income statement?

The following are a selection of account balances taken from the Adjusted Trial Balance of Cajon Corporation for December 31, 2012: -Refer to Exhibit 4-1. Given the information above, Cajon Corporation had net income in 2012 of

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

New Measures of Performance

Filters

Exam 4: Completing the Accounting Cycle

In analyzing accounts to determine which adjusting entries are necessary, accountants should determine

Mancheski and Sons Inc. reported net income of $45,600 in 2012. Carl, the company bookkeeper, neglected to make the necessary adjusting entries. The necessary adjustments are given below:

In the course of your examination of the books and records of Andelin Company for the year ending December 31, 2012, you find the following data: Compute Andelin Company's net income for 2012 using cash-basis accounting.

When preparing its financial statements, a company is more concerned about which of the following?

The purpose of financial statement analysis is to

An expired asset is called a(n)

Scully Corporation purchased a three-year insurance policy on November 1 for $3,600. Assuming that Scully Corporation recorded the original transaction by debiting Prepaid Insurance, the adjusting entry on December 31 will include a

Which of the following statements about adjusting entries is NOT true?

The entry to close the expense accounts normally includes a

On April 1, Ciaunna Company paid $48,000 for two years rent and recorded the entire amount as a debit to Prepaid Rent. The adjusting entry on December 31 of that year would include a

Nona Corporation, a calendar-year company, had the following transactions during 2012: Assuming cash-basis accounting for Nona Corporation, how much income should be reported on its 2012 income statement?

The following are a selection of account balances taken from the Adjusted Trial Balance of Cajon Corporation for December 31, 2012: -Refer to Exhibit 4-1. Given the information above, Cajon Corporation had net income in 2012 of

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

New Measures of Performance

Filters