Question 1

Assets are listed in the order of their ________ on the balance sheet.

Accepted Answer

A) amounts 
B) dates of purchase 
C) liquidities 
D) durabilities 
A) amounts 
B) dates of purchase 
C) liquidities 
D) durabilities

Question 2

Which of the following would be considered the weakest current ratio?

Accepted Answer

A) 0.35 
B) 1.10 
C) 1.25 
D) 1.80 
A) 0.35 
B) 1.10 
C) 1.25 
D) 1.80

Question 3

Which of the following account's balance is carried forward to the next accounting period?

Accepted Answer

A) Accumulated Depreciation 
B) Depreciation Expense 
C) Owner's Name, Withdrawals 
D) Sales Revenue 
A) Accumulated Depreciation 
B) Depreciation Expense 
C) Owner's Name, Withdrawals 
D) Sales Revenue

Question 4

Adjusting journal entries are prepared:

Accepted Answer

A) after preparing the adjusted trial balance. 
B) after preparing the unadjusted trial balance. 
C) after posting the closing entries. 
D) after preparing the financial statements. 
A) after preparing the adjusted trial balance. 
B) after preparing the unadjusted trial balance. 
C) after posting the closing entries. 
D) after preparing the financial statements.

Question 5

The post-closing trial balance shows the updated capital balance.

Accepted Answer

A) True 
 B)False

Question 6

The balances of select accounts of Sandra Company as at December 31, 2015 are given below:   The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total long-term liabilities shown on the balance sheet?

Accepted Answer

A) $1,200 
B) $4,000 
C) $5,200 
D) $25,000 
A) $1,200 
B) $4,000 
C) $5,200 
D) $25,000

Question 7

Under which of the following categories would bonds held as investment for more than a year appear?

Accepted Answer

A) Current assets 
B) Long-term liabilities 
C) Long-term assets 
D) Current liabilities 
A) Current assets 
B) Long-term liabilities 
C) Long-term assets 
D) Current liabilities

Question 8

In the worksheet, the adjusted balance in the Service Revenue account is also recorded in the credit column of the income statement.

Accepted Answer

A) True 
 B)False

Question 9

The Accounts Receivable account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 10

The following is the adjusted trial balance for Tuttle Photography.   After the closing entries, what will the final balance in R. Tuttle, Capital be?

Accepted Answer

A) $25,000 
B) $191,200 
C) $21,290 
D) $166,200 
A) $25,000 
B) $191,200 
C) $21,290 
D) $166,200

Question 11

Revenues and expenses are transferred to the ________ account before their final transfer into the Owner's Name, Capital account.

Accepted Answer

A) net income. 
B) income summary 
C) withdrawals 
D) assets 
A) net income. 
B) income summary 
C) withdrawals 
D) assets

Question 12

Which is a permanent account?

Accepted Answer

A) Wages Expense 
B) Salary Payable 
C) Service Revenue 
D) Utilities Expense 
A) Wages Expense 
B) Salary Payable 
C) Service Revenue 
D) Utilities Expense

Question 13

Which of the following assets is the most liquid?

Accepted Answer

A) Building 
B) Prepaid Expenses 
C) Accounts Receivable 
D) Cash 
A) Building 
B) Prepaid Expenses 
C) Accounts Receivable 
D) Cash

Question 14

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

Accepted Answer

A) Service Revenue 
B) Rent Expense 
C) Interest Expense 
D) Unearned Service Revenue 
A) Service Revenue 
B) Rent Expense 
C) Interest Expense 
D) Unearned Service Revenue

Question 15

Under which of the following categories would bonds held as investment for more than a year appear?

Accepted Answer

A) Long-term assets 
B) Current assets 
C) Long-term liabilities 
D) Current liabilities 
A) Long-term assets 
B) Current assets 
C) Long-term liabilities 
D) Current liabilities

Question 16

What is the result if the amount of Net Income for the year is less than the amount of the Owner's Withdrawals?

Accepted Answer

A) Owner's Name, Capital increases 
B) Cash balance decreases 
C) Cash balance increases 
D) Owner's Name, Capital decreases 
A) Owner's Name, Capital increases 
B) Cash balance decreases 
C) Cash balance increases 
D) Owner's Name, Capital decreases

Question 17

The operating cycle is the process by which companies produce their financial statements for a specific period.

Accepted Answer

A) True 
 B)False

Question 18

Only permanent accounts appear on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 19

A current ratio of 2.00 indicates that the company has $2 of:

Accepted Answer

A) current liabilities for every $1 of current assets. 
B) total assets for every $1 of current liabilities. 
C) current assets for every $1 of current liabilities. 
D) total assets for every $1 of current assets. 
A) current liabilities for every $1 of current assets. 
B) total assets for every $1 of current liabilities. 
C) current assets for every $1 of current liabilities. 
D) total assets for every $1 of current assets.

Question 20

The formula for computing the current ratio is:

Accepted Answer

A) Current assets ÷ Total assets 
B) Current assets ÷ Total liabilities 
C) Current assets ÷ Owner's Equity 
D) Current assets ÷ Current liabilities 
A) Current assets ÷ Total assets 
B) Current assets ÷ Total liabilities 
C) Current assets ÷ Owner's Equity 
D) Current assets ÷ Current liabilities

Exam 4: Completing the Accounting Cycle

Assets are listed in the order of their ________ on the balance sheet.

Which of the following would be considered the weakest current ratio?

Which of the following account's balance is carried forward to the next accounting period?

Adjusting journal entries are prepared:

The post-closing trial balance shows the updated capital balance.

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total long-term liabilities shown on the balance sheet?

Under which of the following categories would bonds held as investment for more than a year appear?

In the worksheet, the adjusted balance in the Service Revenue account is also recorded in the credit column of the income statement.

The Accounts Receivable account is a permanent account.

The following is the adjusted trial balance for Tuttle Photography. After the closing entries, what will the final balance in R. Tuttle, Capital be?

Revenues and expenses are transferred to the ________ account before their final transfer into the Owner's Name, Capital account.

Which is a permanent account?

Which of the following assets is the most liquid?

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

Under which of the following categories would bonds held as investment for more than a year appear?

What is the result if the amount of Net Income for the year is less than the amount of the Owner's Withdrawals?

The operating cycle is the process by which companies produce their financial statements for a specific period.

Only permanent accounts appear on the post-closing trial balance.

A current ratio of 2.00 indicates that the company has $2 of:

The formula for computing the current ratio is:

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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