Question 1

The final step in the accounting cycle is to ________.

Accepted Answer

A) prepare an adjusted trial balance 
B) close temporary accounts 
C) prepare a post-closing trial balance 
D) prepare financial statements 
A) prepare an adjusted trial balance 
B) close temporary accounts 
C) prepare a post-closing trial balance 
D) prepare financial statements C

Question 2

Reversing entries change the amounts reported in previously issued financial statements.

Accepted Answer

A) True 
 B)False  False

Question 3

All of the following accounts are temporary accounts except ________.

Accepted Answer

A) Gain on Sale of Equipment 
B) Sales Revenue 
C) Dividends Payable 
D) Interest Expense 
A) Gain on Sale of Equipment 
B) Sales Revenue 
C) Dividends Payable 
D) Interest Expense C

Question 4

List the sequence in which financial statements are prepared from the adjusted trial balance.

Accepted Answer

Statement of Net Inc

Question 5

If a company initially records a deferred revenue as a liability,an adjusting entry must be made at the end of the period to increase the revenue account.

Accepted Answer

A) True 
 B)False

Question 6

Accrued revenues are earned before they are received.

Accepted Answer

A) True 
 B)False

Question 7

If a prepaid expense is recorded as an expense and,and the adjusting entry is not made at the end of the period,assets on the balance sheet will be overstated.

Accepted Answer

A) True 
 B)False

Question 8

The final financial statement prepared from the adjusted trial balance is the ________.

Accepted Answer

A) balance sheet 
B) statement of net income 
C) statement of cash flows 
D) statement of retained earnings 
A) balance sheet 
B) statement of net income 
C) statement of cash flows 
D) statement of retained earnings

Question 9

Selected transactions of Ventura Corporation are presented below:
   Required: Prepare the adjusting entries that would be required on June 30.

Accepted Answer

The answer of Selected transactions of Ventura Corporation are presented...

Question 10

Bay City Corporation received $21,000 for 12 months rent in advance.What entry is used to record this transaction?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 11

The adjusted trial balance proves the accuracy of the financial statements.

Accepted Answer

A) True 
 B)False

Question 12

If a company does not adjust a prepaid expense initially recorded as an asset,assets will be understated.

Accepted Answer

A) True 
 B)False

Question 13

What are the common errors that a trial balance will not reveal?

Accepted Answer

1.A transaction that is not journalized.

Question 14

Abacus Corporation purchased equipment costing $40,000.It paid $10,000 in cash and signed a note payable for $30,000.This transaction ________.

Accepted Answer

A) increased assets by $40,000,liabilities by $30,000 and shareholders' equity by $10,000. 
B) increased assets by $40,000 and liabilities by $30,000. 
C) increased assets and liabilities each by $30,000. 
D) increased assets and shareholders' equity each by $40,000. 
A) increased assets by $40,000,liabilities by $30,000 and shareholders' equity by $10,000. 
B) increased assets by $40,000 and liabilities by $30,000. 
C) increased assets and liabilities each by $30,000. 
D) increased assets and shareholders' equity each by $40,000.

Question 15

All of the following accounts are permanent accounts except ________.

Accepted Answer

A) Accounts Payable 
B) Goodwill 
C) Dividends 
D) Marketable Securities 
A) Accounts Payable 
B) Goodwill 
C) Dividends 
D) Marketable Securities

Question 16

If a journal entry has not been posted to the general ledger,the unadjusted trial balance will still balance.

Accepted Answer

A) True 
 B)False

Question 17

If a debit to Repairs Expense is inadvertently posted to Rent Expense,the unadjusted trial balance will still balance.

Accepted Answer

A) True 
 B)False

Question 18

Jackson Company records all insurance premiums as prepaid insurance.Additional information for the current year is presented below:   What was the total amount of insurance expense incurred during the year?

Accepted Answer

A) $335,000 
B) $225,000 
C) $275,000 
D) $310,000 
A) $335,000 
B) $225,000 
C) $275,000 
D) $310,000

Question 19

The White Boar Pub purchased a two year insurance policy for $9,600 on February 1 and recorded it as an asset.On June 30,the adjusting entry that should be made is ________.

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 20

On March 31,Paris Enterprises received $36,000 in payment for annual advertising contracts and recorded it as advertising revenue.If the revenue is earned equally each month,the adjusting entry on June 30 will include a(n)________.

Accepted Answer

A) a credit to Prepaid Expenses for $27,000 
B) credit to Unearned Revenue for $9,000 
C) debit to Advertising Revenue for $27,000 
D) credit to Advertising Revenue for $9,000 
A) a credit to Prepaid Expenses for $27,000 
B) credit to Unearned Revenue for $9,000 
C) debit to Advertising Revenue for $27,000 
D) credit to Advertising Revenue for $9,000

Exam 4: Review of the Accounting Cycle

The final step in the accounting cycle is to ________.

Reversing entries change the amounts reported in previously issued financial statements.

All of the following accounts are temporary accounts except ________.

List the sequence in which financial statements are prepared from the adjusted trial balance.

If a company initially records a deferred revenue as a liability,an adjusting entry must be made at the end of the period to increase the revenue account.

Accrued revenues are earned before they are received.

If a prepaid expense is recorded as an expense and,and the adjusting entry is not made at the end of the period,assets on the balance sheet will be overstated.

The final financial statement prepared from the adjusted trial balance is the ________.

Selected transactions of Ventura Corporation are presented below: Required: Prepare the adjusting entries that would be required on June 30.

Bay City Corporation received $21,000 for 12 months rent in advance.What entry is used to record this transaction?

The adjusted trial balance proves the accuracy of the financial statements.

If a company does not adjust a prepaid expense initially recorded as an asset,assets will be understated.

What are the common errors that a trial balance will not reveal?

Abacus Corporation purchased equipment costing $40,000.It paid $10,000 in cash and signed a note payable for $30,000.This transaction ________.

All of the following accounts are permanent accounts except ________.

If a journal entry has not been posted to the general ledger,the unadjusted trial balance will still balance.

If a debit to Repairs Expense is inadvertently posted to Rent Expense,the unadjusted trial balance will still balance.

Jackson Company records all insurance premiums as prepaid insurance.Additional information for the current year is presented below: What was the total amount of insurance expense incurred during the year?

The White Boar Pub purchased a two year insurance policy for $9,600 on February 1 and recorded it as an asset.On June 30,the adjusting entry that should be made is ________.

On March 31,Paris Enterprises received $36,000 in payment for annual advertising contracts and recorded it as advertising revenue.If the revenue is earned equally each month,the adjusting entry on June 30 will include a(n)________.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

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