Question 1

A balance sheet that lists the assets above the liabilities and owner's equity sections is a(n):

Accepted Answer

A) report form balance sheet. 
B) unclassified form balance sheet. 
C) account form balance sheet. 
D) audited form balance sheet. 
A) report form balance sheet. 
B) unclassified form balance sheet. 
C) account form balance sheet. 
D) audited form balance sheet.

Question 2

Rose Company earned revenues of $15,000 and incurred expenses of $9,000. The withdrawals of Mary Rose, the owner, were $3,000. What is the balance in the Income Summary account prior to closing net income or loss to the Rose, Capital account?

Accepted Answer

A) Debit balance of $6,000 
B) Debit balance of $15,000 
C) Credit balance of $6,000 
D) Credit balance of $15,000 
A) Debit balance of $6,000 
B) Debit balance of $15,000 
C) Credit balance of $6,000 
D) Credit balance of $15,000

Question 3

Which of the following accounts are included in an income statement?

Accepted Answer

A) Land, Salaries Payable 
B) Owner's Name, Capital, Owner's Contribution 
C) Furniture, Cash 
D) Service Revenue, Utilities Expense 
A) Land, Salaries Payable 
B) Owner's Name, Capital, Owner's Contribution 
C) Furniture, Cash 
D) Service Revenue, Utilities Expense

Question 4

Which of the following statements is true of the worksheet?

Accepted Answer

A) The worksheet is a ledger. 
B) The worksheet is a document used to summarize data to prepare the financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of the company. 
D) The worksheet is a journal. 
A) The worksheet is a ledger. 
B) The worksheet is a document used to summarize data to prepare the financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of the company. 
D) The worksheet is a journal.

Question 5

On December 31, 2014, Axle Services prepared the following accrual adjustment:   Axle paid salaries amounting to $200 on January 07, 2015 for salaries due in 2014. Journalize the entries for January 1, 2015 and January 7, 2015, assuming Axle uses reversing entries.

Accepted Answer

On January 1, Axle will record

Question 6

Refer to the following adjusted trial balance.   What will be the final ending balance in the Owner's Name, Capital account after posting the closing entries?

Accepted Answer

A) $21,200 
B) $20,800 
C) $24,200 
D) $23,800 
A) $21,200 
B) $20,800 
C) $24,200 
D) $23,800

Question 7

The Owner's Name, Withdrawals account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

Accepted Answer

A) Assets, liabilities and withdrawals 
B) Revenues, expenses and withdrawals 
C) Assets, liabilities and capital 
D) Revenues, expenses and capital 
A) Assets, liabilities and withdrawals 
B) Revenues, expenses and withdrawals 
C) Assets, liabilities and capital 
D) Revenues, expenses and capital

Question 9

The following is the adjusted trial balance as of December 31, 2015 of Martin Watch Company:   Provide the closing entry for expenses.

Accepted Answer

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

Question 10

Which of the following accounts would appear in the income statement debit column?

Accepted Answer

A) Unearned Service Revenue 
B) Service Revenue 
C) Depreciation Expense 
D) Prepaid Insurance 
A) Unearned Service Revenue 
B) Service Revenue 
C) Depreciation Expense 
D) Prepaid Insurance

Question 11

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Accepted Answer

A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment 
A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment

Question 12

Clear Cleaning Services pays out wages every week on Friday. Payroll expense totals $4,000 per week, based on a 5-day week. The month of June ended on a Thursday. On Thursday, June 30, Clear made the following accrual adjustment:   At the same time, they prepared the following reversing entry to be booked on July 1:   On Friday afternoon, when wages were paid out, what journal entry was made?

Accepted Answer

The answer of Clear Cleaning Services pays out wages every...

Question 13

The adjusting process zeroes out all revenues and all expenses.

Accepted Answer

A) True 
 B)False

Question 14

The closing process helps in measuring each period's net income separately from all other periods.

Accepted Answer

A) True 
 B)False

Question 15

In the last step of the closing process, the Owner's Name, Withdrawals account is closed to the Owner's Name, Capital account.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

On December 31, 2014, Axle Services prepared the following accrual adjustment:   Axle uses reversing entries. Prepare the reversing entry that would be prepared on January 1, 2015?

Accepted Answer

The answer of On December 31, 2014, Axle Services prepared...

Question 18

Reversing entries ease the burden of accounting for transactions in a later period.

Accepted Answer

A) True 
 B)False

Question 19

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

Accepted Answer

A) True 
 B)False

Question 20

The smaller the current ratio, the higher is the ability of a firm to repay its current debts.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

A balance sheet that lists the assets above the liabilities and owner's equity sections is a(n):

Rose Company earned revenues of $15,000 and incurred expenses of $9,000. The withdrawals of Mary Rose, the owner, were $3,000. What is the balance in the Income Summary account prior to closing net income or loss to the Rose, Capital account?

Which of the following accounts are included in an income statement?

Which of the following statements is true of the worksheet?

On December 31, 2014, Axle Services prepared the following accrual adjustment: Axle paid salaries amounting to $200 on January 07, 2015 for salaries due in 2014. Journalize the entries for January 1, 2015 and January 7, 2015, assuming Axle uses reversing entries.

Refer to the following adjusted trial balance. What will be the final ending balance in the Owner's Name, Capital account after posting the closing entries?

The Owner's Name, Withdrawals account is a permanent account.

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

The following is the adjusted trial balance as of December 31, 2015 of Martin Watch Company: Provide the closing entry for expenses.

Which of the following accounts would appear in the income statement debit column?

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

The adjusting process zeroes out all revenues and all expenses.

The closing process helps in measuring each period's net income separately from all other periods.

In the last step of the closing process, the Owner's Name, Withdrawals account is closed to the Owner's Name, Capital account.

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

On December 31, 2014, Axle Services prepared the following accrual adjustment: Axle uses reversing entries. Prepare the reversing entry that would be prepared on January 1, 2015?

Reversing entries ease the burden of accounting for transactions in a later period.

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

The smaller the current ratio, the higher is the ability of a firm to repay its current debts.

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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