Question 1

Revenue is equal to the cash received by a company during an accounting period.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following accounts probably would not appear in a trial balance but probably would appear in an adjusted trial balance?

Accepted Answer

A)  Accumulated Depreciation-Machinery 
B)  Accounts Receivable 
C)  Insurance Expense 
D)  Unearned Revenue 
A)  Accumulated Depreciation-Machinery 
B)  Accounts Receivable 
C)  Insurance Expense 
D)  Unearned Revenue

Question 3

An adjusted trial balance is prepared to

Accepted Answer

A)  test that the ledger is in balance after the accounts have been adjusted. 
B)  facilitate preparation of the adjusting entries. 
C)  both test that the ledger is in balance after the accounts have been adjusted and facilitate preparation of the financial statements. 
D)  facilitate preparation of the financial statements. 
A)  test that the ledger is in balance after the accounts have been adjusted. 
B)  facilitate preparation of the adjusting entries. 
C)  both test that the ledger is in balance after the accounts have been adjusted and facilitate preparation of the financial statements. 
D)  facilitate preparation of the financial statements.

Question 4

Retailers often end their fiscal year

Accepted Answer

A)  in correspondence with their yearly cycle of business activity. 
B)  during the peak of the busy season. 
C)  at different times each year. 
D)  on July 31. 
A)  in correspondence with their yearly cycle of business activity. 
B)  during the peak of the busy season. 
C)  at different times each year. 
D)  on July 31.

Question 5

Which of the following is an application of accrual accounting?

Accepted Answer

A)  Depreciating a building as quickly as allowed by income tax regulations 
B)  Recording utilities expense in the accounting period when the bill is paid 
C)  Expensing a machine in its entirety when purchased 
D)  Recording revenue at the time services are rendered 
A)  Depreciating a building as quickly as allowed by income tax regulations 
B)  Recording utilities expense in the accounting period when the bill is paid 
C)  Expensing a machine in its entirety when purchased 
D)  Recording revenue at the time services are rendered

Question 6

When the estimates involved in earnings management begin moving outside a reasonable range,the financial statements can become misleading.

Accepted Answer

A) True 
 B)False

Question 7

If no adjustments are needed for a particular company,its

Accepted Answer

A)  trial balance will be identical to its adjusted trial balance. 
B)  post-closing trial balance will be identical to its trial balance. 
C)  trial balance,adjusted trial balance,and post-closing trial balance will be identical. 
D)  adjusted trial balance will be identical to its post-closing trial balance. 
A)  trial balance will be identical to its adjusted trial balance. 
B)  post-closing trial balance will be identical to its trial balance. 
C)  trial balance,adjusted trial balance,and post-closing trial balance will be identical. 
D)  adjusted trial balance will be identical to its post-closing trial balance.

Question 8

Supplies Expense is a permanent account.

Accepted Answer

A) True 
 B)False

Question 9

When a net loss has been suffered,Retained Earnings will contain a positive balance.

Accepted Answer

A) True 
 B)False

Question 10

Antonio's Pizza has a delivery truck it purchased for $30,000.The truck has an estimated useful life of six years and will be worthless at the end of that time.In the partial balance sheet below,show exactly how the truck would be disclosed after it has been used for two years.Also calculate total assets.

Accepted Answer

@#IMG-DLM&
 *$30,000

Question 11

Use this adjusted trial balance to answer the following question.   The amount of net income (or net loss)during the period is

Accepted Answer

A)  $32,000 net income. 
B)  $9,000 net income. 
C)  $10,000 net loss. 
D)  $14,000 net income. 
A)  $32,000 net income. 
B)  $9,000 net income. 
C)  $10,000 net loss. 
D)  $14,000 net income.

Question 12

Which of the following is not an application of accrual accounting?

Accepted Answer

A)  Recording advertising fees earned at the time the work is paid for 
B)  Adjusting unearned advertising fees to the proper balance at the end of the month 
C)  Recording advertising fees earned at the time service is performed 
D)  Recording telephone expense in the accounting period covered by the monthly bill 
A)  Recording advertising fees earned at the time the work is paid for 
B)  Adjusting unearned advertising fees to the proper balance at the end of the month 
C)  Recording advertising fees earned at the time service is performed 
D)  Recording telephone expense in the accounting period covered by the monthly bill

Question 13

All increases to cash represent revenues.

Accepted Answer

A) True 
 B)False

Question 14

Under which circumstance would one less closing entry than usual be made?

Accepted Answer

A)  When the Retained Earnings account is zero prior to posting of closing entries 
B)  When a net loss has been suffered 
C)  When revenues have not yet been collected 
D)  When net income is zero 
A)  When the Retained Earnings account is zero prior to posting of closing entries 
B)  When a net loss has been suffered 
C)  When revenues have not yet been collected 
D)  When net income is zero

Question 15

Which of the following accounts is most likely to be adjusted at year end?

Accepted Answer

A)  Accounts Payable 
B)  Land 
C)  Supplies 
D)  Common Stock 
A)  Accounts Payable 
B)  Land 
C)  Supplies 
D)  Common Stock

Question 16

Below are the adjusted accounts of Century Realtors,Inc.,for the month ended October 31,2013,listed in alphabetical order:
   Prepare a post-closing trial balance.

Accepted Answer

@#IMG-DLM& *Net income: $5,400 - $150 -

Question 17

The post-closing trial balance would not include which of the following accounts?

Accepted Answer

A)  Unearned Legal Fees 
B)  Dividends 
C)  Accumulated Depreciation-Office Equipment 
D)  Retained Earnings 
A)  Unearned Legal Fees 
B)  Dividends 
C)  Accumulated Depreciation-Office Equipment 
D)  Retained Earnings

Question 18

Financial statements cannot be prepared until the accounts have been adjusted.

Accepted Answer

A) True 
 B)False

Question 19

The cash basis of accounting results in a more accurate measurement of net income for the period than does the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 20

In accounting,depreciation refers to the

Accepted Answer

A)  allocation of asset cost. 
B)  wearing away of an asset. 
C)  decline in value of an asset. 
D)  obsolescence of an asset. 
A)  allocation of asset cost. 
B)  wearing away of an asset. 
C)  decline in value of an asset. 
D)  obsolescence of an asset.

Revenue is equal to the cash received by a company during an accounting period.

Which of the following accounts probably would not appear in a trial balance but probably would appear in an adjusted trial balance?

An adjusted trial balance is prepared to

Retailers often end their fiscal year

Which of the following is an application of accrual accounting?

When the estimates involved in earnings management begin moving outside a reasonable range,the financial statements can become misleading.

If no adjustments are needed for a particular company,its

Supplies Expense is a permanent account.

When a net loss has been suffered,Retained Earnings will contain a positive balance.

Use this adjusted trial balance to answer the following question. The amount of net income (or net loss)during the period is

Which of the following is not an application of accrual accounting?

All increases to cash represent revenues.

Under which circumstance would one less closing entry than usual be made?

Which of the following accounts is most likely to be adjusted at year end?

Below are the adjusted accounts of Century Realtors,Inc.,for the month ended October 31,2013,listed in alphabetical order: Prepare a post-closing trial balance.

The post-closing trial balance would not include which of the following accounts?

Financial statements cannot be prepared until the accounts have been adjusted.

The cash basis of accounting results in a more accurate measurement of net income for the period than does the accrual basis of accounting.

In accounting,depreciation refers to the

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters

Exam 3: Measuring Business Income

Revenue is equal to the cash received by a company during an accounting period.

Which of the following accounts probably would not appear in a trial balance but probably would appear in an adjusted trial balance?

An adjusted trial balance is prepared to

Retailers often end their fiscal year

Which of the following is an application of accrual accounting?

When the estimates involved in earnings management begin moving outside a reasonable range,the financial statements can become misleading.

If no adjustments are needed for a particular company,its

Supplies Expense is a permanent account.

When a net loss has been suffered,Retained Earnings will contain a positive balance.

Use this adjusted trial balance to answer the following question. The amount of net income (or net loss)during the period is

Which of the following is not an application of accrual accounting?

All increases to cash represent revenues.

Under which circumstance would one less closing entry than usual be made?

Which of the following accounts is most likely to be adjusted at year end?

Below are the adjusted accounts of Century Realtors,Inc.,for the month ended October 31,2013,listed in alphabetical order: Prepare a post-closing trial balance.

The post-closing trial balance would not include which of the following accounts?

Financial statements cannot be prepared until the accounts have been adjusted.

The cash basis of accounting results in a more accurate measurement of net income for the period than does the accrual basis of accounting.

In accounting,depreciation refers to the

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters