Question 1

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Accepted Answer

A) True 
 B)False

Question 2

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Accepted Answer

A)  $4,020 net income 
B)  $36,755 net loss 
C)  $4,020 net loss 
D)  $32,735 net income 
A)  $4,020 net income 
B)  $36,755 net loss 
C)  $4,020 net loss 
D)  $32,735 net income

Question 3

The following balance sheet contains errors.
​
​   ​​
(a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

Accepted Answer

@#IMG-DLM&_TB2281_00 ​
A corre

Question 4

List and describe the purpose of the four closing entries.

Accepted Answer

1. Close revenues to Income Su

Question 5

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)?

Accepted Answer

A)  analyze and record transactions, post transactions to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries 
B)  prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger 
C)  analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance 
D)  prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries 
A)  analyze and record transactions, post transactions to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries 
B)  prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger 
C)  analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance 
D)  prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries

Question 6

Which of the following account groups are nominal accounts?

Accepted Answer

A)  Cash, Dividends, Wages Payable 
B)  Prepaid Insurance, Equipment, Fees Earned 
C)  Common Stock, Dividends, Income Summary 
D)  Rent Revenue, Fees Earned, Miscellaneous Expense 
A)  Cash, Dividends, Wages Payable 
B)  Prepaid Insurance, Equipment, Fees Earned 
C)  Common Stock, Dividends, Income Summary 
D)  Rent Revenue, Fees Earned, Miscellaneous Expense

Question 7

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Accepted Answer

A) True 
 B)False

Question 8

Match each journal entry that follows as one of the types of journal entries (a-c) below.
-​Accounts Receivable 325
Fees Earned 325
(Customer billed for services performed.)

Accepted Answer

A) Journal entries 
B) Adjusting journal entries 
C) Closing journal entries 
A) Journal entries 
B) Adjusting journal entries 
C) Closing journal entries

Question 9

A post-closing trial balance contains only asset and liability accounts.

Accepted Answer

A) True 
 B)False

Question 10

It is not necessary to post the closing entries to the general ledger.

Accepted Answer

A) True 
 B)False

Question 11

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 12

Kirk Enterprises offers rug cleaning services to business clients. Below is the trial balance for Kirk Enterprises, which was prepared on the end-of-period spreadsheet for the year ended July 31.
​   REQUIRED: Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns.
a) Depreciation expense, $1,000
b) Wages accrued, but not paid, $2,000.
c) Supplies on hand, $8,000.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance at July 31, $9,000.

Accepted Answer

The answer of Kirk Enterprises offers rug cleaning services to...

Question 13

The first item appearing on the retained earnings statement is

Accepted Answer

A)  net income 
B)  the ending balance of retained earnings 
C)  dividends 
D)  the beginning balance of retained earnings 
A)  net income 
B)  the ending balance of retained earnings 
C)  dividends 
D)  the beginning balance of retained earnings

Question 14

The income statement is prepared from

Accepted Answer

A)  the adjusted trial balance 
B)  the Income Statement columns of the end-of-period spreadsheet 
C)  either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet 
D)  both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheet 
A)  the adjusted trial balance 
B)  the Income Statement columns of the end-of-period spreadsheet 
C)  either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet 
D)  both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheet

Question 15

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Accepted Answer

A)  verify that the debits and credits are in balance 
B)  verify that the net income correctly flows into the statement of stockholders' equity from the income statement 
C)  verify that the net income (loss) is correct for the period 
D)  verify the correct flow of accounts into the financial statements 
A)  verify that the debits and credits are in balance 
B)  verify that the net income correctly flows into the statement of stockholders' equity from the income statement 
C)  verify that the net income (loss) is correct for the period 
D)  verify the correct flow of accounts into the financial statements

Question 16

Closing entries are dated in the journal as of

Accepted Answer

A)  the date they are actually journalized, although they are generally prepared after the end of the accounting period 
B)  the last day of the accounting period 
C)  the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period 
D)  the first day of the subsequent accounting period 
A)  the date they are actually journalized, although they are generally prepared after the end of the accounting period 
B)  the last day of the accounting period 
C)  the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period 
D)  the first day of the subsequent accounting period

Question 17

Real accounts are not permanent accounts.

Accepted Answer

A) True 
 B)False

Question 18

Prepaid Insurance is an example of a current asset.

Accepted Answer

A) True 
 B)False

Question 19

Working capital is the ratio of the current assets of a business to its current liabilities.

Accepted Answer

A) True 
 B)False

Question 20

Prepaid expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

The following balance sheet contains errors. (a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

List and describe the purpose of the four closing entries.

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)?

Which of the following account groups are nominal accounts?

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.)

A post-closing trial balance contains only asset and liability accounts.

It is not necessary to post the closing entries to the general ledger.

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

The first item appearing on the retained earnings statement is

The income statement is prepared from

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Closing entries are dated in the journal as of

Real accounts are not permanent accounts.

Prepaid Insurance is an example of a current asset.

Working capital is the ratio of the current assets of a business to its current liabilities.

Prepaid expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 4: The Accounting Cycle

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

The following balance sheet contains errors. ​ ​ ​​ (a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

List and describe the purpose of the four closing entries.

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)?

Which of the following account groups are nominal accounts?

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.)

A post-closing trial balance contains only asset and liability accounts.

It is not necessary to post the closing entries to the general ledger.

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

The first item appearing on the retained earnings statement is

The income statement is prepared from

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Closing entries are dated in the journal as of

Real accounts are not permanent accounts.

Prepaid Insurance is an example of a current asset.

Working capital is the ratio of the current assets of a business to its current liabilities.

Prepaid expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

The following balance sheet contains errors. (a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.)