Question 1

Which of the following would be considered a long-term asset?

Accepted Answer

A) Accounts Payable 
B) Land 
C) Cash 
D) Owner's Name, Capital 
A) Accounts Payable 
B) Land 
C) Cash 
D) Owner's Name, Capital B

Question 2

Which of the following accounts will be included in a post-closing trial balance?

Accepted Answer

A) Accumulated Depreciation-Building 
B) Rent Expense 
C) Interest Expense 
D) Service Revenue 
A) Accumulated Depreciation-Building 
B) Rent Expense 
C) Interest Expense 
D) Service Revenue A

Question 3

The assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

Accepted Answer

A) intangible 
B) plant 
C) long-term 
D) current 
A) intangible 
B) plant 
C) long-term 
D) current D

Question 4

Patents, copyrights, and trademarks are examples of:

Accepted Answer

A) short-term investments. 
B) fixed assets. 
C) long-term investments. 
D) intangible assets. 
A) short-term investments. 
B) fixed assets. 
C) long-term investments. 
D) intangible assets.

Question 5

Which of the following statements is an accurate interpretation of the current ratio?

Accepted Answer

A) A current ratio of 1.5 or higher is considered a high-risk ratio. 
B) A current ratio below 1.00 is considered a good and safe ratio. 
C) A current ratio of 2.0 indicates strong ability to pay current liabilities. 
D) A current ratio of 0.60 or lower is a good and safe ratio. 
A) A current ratio of 1.5 or higher is considered a high-risk ratio. 
B) A current ratio below 1.00 is considered a good and safe ratio. 
C) A current ratio of 2.0 indicates strong ability to pay current liabilities. 
D) A current ratio of 0.60 or lower is a good and safe ratio.

Question 6

The Salaries Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 7

John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. No withdrawals were made by Smith during the year. The ending balance in Smith, Capital was $100,000.

Accepted Answer

A) True 
 B)False

Question 8

A list of the accounts and their balances at the end of the period after journalizing and posting the closing entries which includes only permanent accounts is called:

Accepted Answer

A) chart of accounts. 
B) adjusted trial balance. 
C) post-closing trial balance. 
D) pre-closing balance sheet. 
A) chart of accounts. 
B) adjusted trial balance. 
C) post-closing trial balance. 
D) pre-closing balance sheet.

Question 9

Where does Net Income appear on a worksheet?

Accepted Answer

A) Net income appears only in the income statement debit column. 
B) Net income appears in the balance sheet credit column and in the income statement debit column. 
C) Net income appears in the income statement credit column and in the balance sheet debit column. 
D) Net income appears only in the balance sheet credit column. 
A) Net income appears only in the income statement debit column. 
B) Net income appears in the balance sheet credit column and in the income statement debit column. 
C) Net income appears in the income statement credit column and in the balance sheet debit column. 
D) Net income appears only in the balance sheet credit column.

Question 10

The balances of select accounts of Sandra Company as at December 31, 2015 are given below:   What are the total long-term assets that would be shown on the balance sheet?

Accepted Answer

A) $120,000 
B) $152,200 
C) $155,000 
D) $158,000 
A) $120,000 
B) $152,200 
C) $155,000 
D) $158,000

Question 11

The Service Revenue account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 12

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography:   Provide the closing entry for Service Revenue.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 13

Which of the following is a plant asset?

Accepted Answer

A) Equipment 
B) Patents 
C) Trademark 
D) Accounts Receivable 
A) Equipment 
B) Patents 
C) Trademark 
D) Accounts Receivable

Question 14

Closing journal entries are posted:

Accepted Answer

A) throughout the accounting period. 
B) before posting the adjusting entries. 
C) after preparing the post closing trial balance. 
D) after preparing the financial statements. 
A) throughout the accounting period. 
B) before posting the adjusting entries. 
C) after preparing the post closing trial balance. 
D) after preparing the financial statements.

Question 15

The Interest Expense in the worksheet's unadjusted trial balance column is $3,000. Interest Expense in the income statement column is $7,000. Which of the following entries would have caused this difference?

Accepted Answer

A) A $7,000 credit to Interest Expense in the worksheet's adjustments column 
B) A $7,000 credit to Interest Payable in the worksheet's adjustments column 
C) A $4,000 debit to Interest Expense in the worksheet's adjustments column 
D) A $4,000 credit to Interest Expense in the worksheet's adjustments column 
A) A $7,000 credit to Interest Expense in the worksheet's adjustments column 
B) A $7,000 credit to Interest Payable in the worksheet's adjustments column 
C) A $4,000 debit to Interest Expense in the worksheet's adjustments column 
D) A $4,000 credit to Interest Expense in the worksheet's adjustments column

Question 16

Which of the following accounts would appear in the balance sheet credit column?

Accepted Answer

A) Prepaid Insurance 
B) Buildings 
C) Unearned Service Revenue 
D) Service Revenue 
A) Prepaid Insurance 
B) Buildings 
C) Unearned Service Revenue 
D) Service Revenue

Question 17

The steps of the accounting cycle are followed throughout the accounting period.

Accepted Answer

A) True 
 B)False

Question 18

The following contains information from the records of the Wellborn Engineers and Architects.     Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

Accepted Answer

A) The company has $2.32 of current assets for every $1.00 of liabilities. 
B) The company has $1.68 of current assets for every $1.00 of current liabilities. 
C) The company has $1.58 of current assets for every $1.00 of liabilities. 
D) The company has $0.59 of current assets for every $1.00 of current liabilities. 
A) The company has $2.32 of current assets for every $1.00 of liabilities. 
B) The company has $1.68 of current assets for every $1.00 of current liabilities. 
C) The company has $1.58 of current assets for every $1.00 of liabilities. 
D) The company has $0.59 of current assets for every $1.00 of current liabilities.

Question 19

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography:   Provide the closing entry for expenses.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 20

Which of the following accounts will be closed by debiting the Income Summary account?

Accepted Answer

A) Owner's Name, Capital 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense 
A) Owner's Name, Capital 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense

Exam 4: Completing the Accounting Cycle

Which of the following would be considered a long-term asset?

Which of the following accounts will be included in a post-closing trial balance?

The assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

Patents, copyrights, and trademarks are examples of:

Which of the following statements is an accurate interpretation of the current ratio?

The Salaries Expense account is a temporary account.

John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. No withdrawals were made by Smith during the year. The ending balance in Smith, Capital was $100,000.

A list of the accounts and their balances at the end of the period after journalizing and posting the closing entries which includes only permanent accounts is called:

Where does Net Income appear on a worksheet?

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: What are the total long-term assets that would be shown on the balance sheet?

The Service Revenue account is a temporary account.

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: Provide the closing entry for Service Revenue.

Which of the following is a plant asset?

Closing journal entries are posted:

The Interest Expense in the worksheet's unadjusted trial balance column is $3,000. Interest Expense in the income statement column is $7,000. Which of the following entries would have caused this difference?

Which of the following accounts would appear in the balance sheet credit column?

The steps of the accounting cycle are followed throughout the accounting period.

The following contains information from the records of the Wellborn Engineers and Architects. Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: Provide the closing entry for expenses.

Which of the following accounts will be closed by debiting the Income Summary account?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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