Question 1

The closing process resets ________,__________,and ________ account balances to zero at the end of each accounting period.

Accepted Answer

answers c

Question 2

The Income Summary account is a permanent account that will be carried forward period after period.

Accepted Answer

A) True 
 B)False

Question 3

Use the information in the adjusted trial balance presented below to calculate current assets for Jones Company:

Accepted Answer

A) $21,200. 
B) $45,600. 
C) $24,400. 
D) $95,600. 
E) $41,200. 
A) $21,200. 
B) $45,600. 
C) $24,400. 
D) $95,600. 
E) $41,200.

Question 4

If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column.The Balance Sheet columns will balance on completing the work sheet but with the wrong net income,if the amount sorted in error is:

Accepted Answer

A) An expense amount placed in the Balance Sheet Credit column. 
B) A revenue amount placed in the Balance Sheet Debit column. 
C) A liability amount placed in the Income Statement Credit column. 
D) An asset amount placed in the Balance Sheet Credit column. 
E) A liability amount placed in the Balance Sheet Debit column. 
A) An expense amount placed in the Balance Sheet Credit column. 
B) A revenue amount placed in the Balance Sheet Debit column. 
C) A liability amount placed in the Income Statement Credit column. 
D) An asset amount placed in the Balance Sheet Credit column. 
E) A liability amount placed in the Balance Sheet Debit column.

Question 5

A post-closing trial balance reports:

Accepted Answer

A) All ledger accounts with balances, none of which can be temporary accounts. 
B) All ledger accounts with balances, none of which can be permanent accounts. 
C) All ledger accounts with balances, which include some temporary and some permanent accounts. 
D) Only revenue and expense accounts. 
E) Only asset accounts. 
A) All ledger accounts with balances, none of which can be temporary accounts. 
B) All ledger accounts with balances, none of which can be permanent accounts. 
C) All ledger accounts with balances, which include some temporary and some permanent accounts. 
D) Only revenue and expense accounts. 
E) Only asset accounts.

Question 6

Plant assets are tangible assets that are usually long-term assets used to produce or sell products and services.

Accepted Answer

A) True 
 B)False

Question 7

The following information is available for Crandall Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Crandall,Capital?

Accepted Answer

A) $80,000. 
B) $64,400. 
C) $43,000. 
D) $32,400. 
E) $42,400. 
A) $80,000. 
B) $64,400. 
C) $43,000. 
D) $32,400. 
E) $42,400.

Question 8

At the beginning of the year,Beta Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000.During the year,the company reported total revenues of $226,000 and expenses of $175,000.Also,owner withdrawals during the year totaled $48,000.Assuming no other changes to owner's capital,the balance in the owner's capital account at the end of the year would be:

Accepted Answer

A) $174,000. 
B) $78,000. 
C) cannot be determined from the information provided. 
D) $120,000. 
E) $123,000. 
A) $174,000. 
B) $78,000. 
C) cannot be determined from the information provided. 
D) $120,000. 
E) $123,000.

Question 9

What is the purpose of closing entries?
 Describe the closing process.

Accepted Answer

The purpose of closing entries is to tra

Question 10

The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.

Accepted Answer

A) True 
 B)False

Question 11

Temporary accounts include all of the following except:

Accepted Answer

A) Consulting revenue. 
B) Withdrawals. 
C) Rent expense. 
D) Prepaid rent. 
E) Income Summary. 
A) Consulting revenue. 
B) Withdrawals. 
C) Rent expense. 
D) Prepaid rent. 
E) Income Summary.

Question 12

The current portion of long-term debt is classified with the______________.

Accepted Answer

The answer of The current portion of long-term debt is...

Question 13

The following are the steps in the accounting cycle.List them in the order in which they are completed:
Prepare adjusted trial balance
Post transactions
Prepare an unadjusted trial balance
Journalize transactions
Prepare the financial statements
Close the temporary accounts
Adjust the ledger accounts
Prepare a post-closing trial balance
Analyze transactions

Accepted Answer

1)Analyze transactions
2)Journalize tran

Question 14

Adjusting entries are normally entered in the general journal before they are posted to the work sheet.

Accepted Answer

A) True 
 B)False

Question 15

How is the current ratio calculated?
 How is it used to evaluate a company?

Accepted Answer

The current ratio is current assets divi

Question 16

Reversing entries are optional.

Accepted Answer

A) True 
 B)False

Question 17

Use the information in the adjusted trial balance presented below to calculate the current ratio for Jones Company:

Accepted Answer

A) 1.87. 
B) .54. 
C) 3.92. 
D) 1.77. 
E) 1.60. 
A) 1.87. 
B) .54. 
C) 3.92. 
D) 1.77. 
E) 1.60.

Question 18

A classified balance sheet differs from an unclassified balance sheet in that

Accepted Answer

A) a unclassified balance sheet is never used by large companies. 
B) a classified balance sheet normally includes only three subgroups. 
C) a classified balance sheet presents information in a manner that makes it easier to calculate a company's current ratio. 
D) a classified balance sheet will include more accounts than an unclassified balance sheet for the same company on the same date. 
E) a classified balance sheet cannot be provided to outside parties. 
A) a unclassified balance sheet is never used by large companies. 
B) a classified balance sheet normally includes only three subgroups. 
C) a classified balance sheet presents information in a manner that makes it easier to calculate a company's current ratio. 
D) a classified balance sheet will include more accounts than an unclassified balance sheet for the same company on the same date. 
E) a classified balance sheet cannot be provided to outside parties.

Question 19

Balance sheet accounts are called ____________________ accounts because they carry their balances to the next accounting period,and are not closed as long as the company continues to own the asset,owe the liability and have equity.

Accepted Answer

The answer of Balance sheet accounts are called ____________________ accounts...

Question 20

Harry's Bikes current ratio is 1.3.The industry average for the current ratio is 1.2.This indicates that Harry's Bikes can cover its short term liabilities with its short term assets.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The closing process resets ________,__________,and ________ account balances to zero at the end of each accounting period.

The Income Summary account is a permanent account that will be carried forward period after period.

Use the information in the adjusted trial balance presented below to calculate current assets for Jones Company:

If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column.The Balance Sheet columns will balance on completing the work sheet but with the wrong net income,if the amount sorted in error is:

A post-closing trial balance reports:

Plant assets are tangible assets that are usually long-term assets used to produce or sell products and services.

The following information is available for Crandall Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Crandall,Capital?

What is the purpose of closing entries? Describe the closing process.

The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.

Temporary accounts include all of the following except:

The current portion of long-term debt is classified with the______________.

Adjusting entries are normally entered in the general journal before they are posted to the work sheet.

How is the current ratio calculated? How is it used to evaluate a company?

Reversing entries are optional.

Use the information in the adjusted trial balance presented below to calculate the current ratio for Jones Company:

A classified balance sheet differs from an unclassified balance sheet in that

Balance sheet accounts are called ____________________ accounts because they carry their balances to the next accounting period,and are not closed as long as the company continues to own the asset,owe the liability and have equity.

Harry's Bikes current ratio is 1.3.The industry average for the current ratio is 1.2.This indicates that Harry's Bikes can cover its short term liabilities with its short term assets.

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

The closing process resets ,,and __ account balances to zero at the end of each accounting period.