Question 1

Accumulated Depreciation,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Accepted Answer

A) Balance Sheet and Statement of Owner's Equity-Credit; Balance Sheet and Statement of Owner's Equity Debit; and Income Statement-Credit. 
B) Balance Sheet and Statement of Owner's Equity-Debit; Balance Sheet and Statement of Owner's Equity-Credit; and Income Statement-Credit. 
C) Income Statement-Debit; Balance Sheet and Statement of Owner's Equity-Debit; and Income Statement-Credit. 
D) Income Statement-Debit; Income Statement-Debit; and Balance Sheet and Statement of Owner's Equity-Credit. 
E) Balance Sheet and Statement of Owner's Equity-Credit; Income Statement-Debit; and Income Statement-Credit. 
A) Balance Sheet and Statement of Owner's Equity-Credit; Balance Sheet and Statement of Owner's Equity Debit; and Income Statement-Credit. 
B) Balance Sheet and Statement of Owner's Equity-Debit; Balance Sheet and Statement of Owner's Equity-Credit; and Income Statement-Credit. 
C) Income Statement-Debit; Balance Sheet and Statement of Owner's Equity-Debit; and Income Statement-Credit. 
D) Income Statement-Debit; Income Statement-Debit; and Balance Sheet and Statement of Owner's Equity-Credit. 
E) Balance Sheet and Statement of Owner's Equity-Credit; Income Statement-Debit; and Income Statement-Credit.

Question 2

Employees of Artworld Co.have earned but have not been paid $3,500 in salaries for the last week of the current calendar year.
(a)Prepare the necessary adjusting journal entry(ies)for Artworld at December 31 of the current year.
(b)Assuming that Artworld makes reversing entries,prepare the necessary reversing entry.Include the appropriate date for the reversing entry(ies).

Accepted Answer

a. Dec.31 Salaries Expense 3,5

Question 3

The following information is available for the Travis Travel Agency.After these closing entries what will be the balance in the Jay Travis,Capital account?
Total revenues………………. $125,000
Total expenses………………. 60,000
Jay Travis,Capital…………… 80,000
Jay Travis,Withdrawals……... 15,000

Accepted Answer

A) $ 65,000. 
B) $ 80,000. 
C) $130,000. 
D) $145,000. 
E) $280,000. 
A) $ 65,000. 
B) $ 80,000. 
C) $130,000. 
D) $145,000. 
E) $280,000.

Question 4

Assets,liabilities,and equity accounts are not closed; these accounts are called:

Accepted Answer

A) Nominal accounts. 
B) Temporary accounts. 
C) Permanent accounts. 
D) Contra accounts. 
E) Accrued accounts. 
A) Nominal accounts. 
B) Temporary accounts. 
C) Permanent accounts. 
D) Contra accounts. 
E) Accrued accounts.

Question 5

Long-term investments can include land held for future expansion.

Accepted Answer

A) True 
 B)False

Question 6

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 7

All of the following regarding current ratio are true except:

Accepted Answer

A) Current ratio is calculated by dividing current assets by current liabilities. 
B) Current ratio helps to assess a company's ability to pay its debts in the near future. 
C) Current ratio does not affect a creditor's decision on when to allow a company to buy on credit. 
D) Current ratio can affect a creditor's decision about whether to lend money to a company. 
E) Current ratio can reveal problems in a company if it is less than 1. 
A) Current ratio is calculated by dividing current assets by current liabilities. 
B) Current ratio helps to assess a company's ability to pay its debts in the near future. 
C) Current ratio does not affect a creditor's decision on when to allow a company to buy on credit. 
D) Current ratio can affect a creditor's decision about whether to lend money to a company. 
E) Current ratio can reveal problems in a company if it is less than 1.

Question 8

Since it is an important financial statement,the work sheet must be prepared according to specified accounting procedures.

Accepted Answer

A) True 
 B)False

Question 9

All of the following statements regarding the Income Statement columns on the worksheet are true except:

Accepted Answer

A) The balances in the Income Statement credit column are revenues. 
B) The balances in the Income Statement credit column are unearned revenues. 
C) The balances in the Income Statement debit column are expenses. 
D) The difference between the totals of the Income Statement columns is net income or net loss. 
E) The net income or net loss from the Income Statement columns is entered in the Balance Sheet & Statement of Owner's Equity columns. 
A) The balances in the Income Statement credit column are revenues. 
B) The balances in the Income Statement credit column are unearned revenues. 
C) The balances in the Income Statement debit column are expenses. 
D) The difference between the totals of the Income Statement columns is net income or net loss. 
E) The net income or net loss from the Income Statement columns is entered in the Balance Sheet & Statement of Owner's Equity columns.

Question 10

Revenues,expenses,and withdrawals accounts,which are closed at the end of each accounting period are:

Accepted Answer

A) Real accounts. 
B) Temporary accounts. 
C) Closing accounts. 
D) Permanent accounts. 
E) Balance sheet accounts. 
A) Real accounts. 
B) Temporary accounts. 
C) Closing accounts. 
D) Permanent accounts. 
E) Balance sheet accounts.

Question 11

On a work sheet,the adjusted balances of revenues and expenses are sorted to the Income Statement columns of the work sheet.

Accepted Answer

A) True 
 B)False

Question 12

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Tricia DeBarre,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

Accepted Answer

A) $16,780 debit. 
B) $ 7,180 credit. 
C) $16,780 credit. 
D) $18,280 credit. 
E) $23,780 credit. 
A) $16,780 debit. 
B) $ 7,180 credit. 
C) $16,780 credit. 
D) $18,280 credit. 
E) $23,780 credit.

Question 13

The items that follow appeared in the Income Statement columns of the work sheet prepared for Armstrong Delivery Service at current year-end.In addition,L.Armstrong,Capital had a credit balance of $117,000 and L.Armstrong,Withdrawals had a debit balance of $30,000 at year end.Prepare closing journal entries for this company.

Accepted Answer

The answer of The items that follow appeared in the...

Question 14

Another name for temporary accounts is:

Accepted Answer

A) Real accounts. 
B) Contra accounts. 
C) Accrued accounts. 
D) Balance column accounts. 
E) Nominal accounts. 
A) Real accounts. 
B) Contra accounts. 
C) Accrued accounts. 
D) Balance column accounts. 
E) Nominal accounts.

Question 15

Current liabilities include accounts receivable,unearned revenues,and salaries payable.

Accepted Answer

A) True 
 B)False

Question 16

Explain why temporary accounts are closed each period.

Accepted Answer

Temporary accounts are closed at the end

Question 17

Explain the purpose of reversing entries.

Accepted Answer

Reversing entries are an optional step i

Question 18

A columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements,and which is an optional tool in the accounting process is a(n):

Accepted Answer

A) Adjusted trial balance. 
B) Work sheet. 
C) Post-closing trial balance. 
D) Unadjusted trial balance. 
E) General ledger. 
A) Adjusted trial balance. 
B) Work sheet. 
C) Post-closing trial balance. 
D) Unadjusted trial balance. 
E) General ledger.

Question 19

Excalibur frequently has accrued expenses at the end of its fiscal year that should be recorded for proper financial statement presentation.Excalibur pays on a weekly basis and has $50,000 of accrued salaries incurred but not paid for June 30,its fiscal year-end.This consists of one day's accrued salaries for the week.Excalibur will pay its employees $250,000 on July 4; the one day of accrued salaries and the remaining four days for July salaries.Record the following entries:
(a)Accrual of the salaries on June 30.
(b)Payment of the salaries on July 4,assuming that Excalibur does not prepare reversing entries.
(c)Assuming that Excalibur prepares reversing entries,reverse the adjusting entry made on June 30.
(d)Assuming that Excalibur prepares reversing entries,payment of the salaries on July 4.

Accepted Answer

The answer of Excalibur frequently has accrued expenses at the...

Question 20

All necessary numbers to prepare the balance sheet can be found in the balance sheet columns of the work sheet including ending owner's capital.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Accumulated Depreciation,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Assets,liabilities,and equity accounts are not closed; these accounts are called:

Long-term investments can include land held for future expansion.

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

All of the following regarding current ratio are true except:

Since it is an important financial statement,the work sheet must be prepared according to specified accounting procedures.

All of the following statements regarding the Income Statement columns on the worksheet are true except:

Revenues,expenses,and withdrawals accounts,which are closed at the end of each accounting period are:

On a work sheet,the adjusted balances of revenues and expenses are sorted to the Income Statement columns of the work sheet.

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Tricia DeBarre,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

Another name for temporary accounts is:

Current liabilities include accounts receivable,unearned revenues,and salaries payable.

Explain why temporary accounts are closed each period.

Explain the purpose of reversing entries.

A columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements,and which is an optional tool in the accounting process is a(n):

All necessary numbers to prepare the balance sheet can be found in the balance sheet columns of the work sheet including ending owner's capital.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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