Question 1

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 2

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 3

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. 
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.

Question 4

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 5

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. 
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.

Question 6

Explain the difference between temporary and permanent accounts.

Accepted Answer

Temporary,or nominal,accounts accumulate

Question 7

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

Accepted Answer

1.Enter the unadjusted trial balance.Lis

Question 8

List the steps in the accounting cycle.

Accepted Answer

The accounting cycle consists of ten ste

Question 9

Revenue accounts should begin each accounting period with zero balances.

Accepted Answer

A) True 
 B)False

Question 10

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. 
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.

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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. 
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.

Question 17

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. 
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.

Question 18

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

Question 19

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

Question 20

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. 
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.

Exam 4: Completing the Accounting Cycle

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.

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.

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

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

When closing entries are made:

Explain the difference between temporary and permanent accounts.

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

List the steps in the accounting cycle.

Revenue accounts should begin each accounting period with zero balances.

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

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.

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

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:

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

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

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

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

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.

Reversing entries:

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

Filters