Question 1

The last step of the accounting cycle is to prepare a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 2

Which of the statements below indicates that a company earned a net income for the period?

Accepted Answer

A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet. 
D)  Cash inflows exceed cash outflows. 
A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet. 
D)  Cash inflows exceed cash outflows.

Question 3

The income statement will present

Accepted Answer

A)  revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last 
B)  revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last 
C)  revenues less expenses (ordered in alphabetical order) 
D)  revenues less expenses (order is not important) 
A)  revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last 
B)  revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last 
C)  revenues less expenses (ordered in alphabetical order) 
D)  revenues less expenses (order is not important)

Question 4

Use the adjusted trial balance for Stockton Company below to answer the questions that follow.
   ​
-Determine the retained earnings ending balance.

Accepted Answer

A)  $12,150 
B)  $15,730 
C)  $6,480 
D)  $21,400 
A)  $12,150 
B)  $15,730 
C)  $6,480 
D)  $21,400

Question 5

Which of the items below does not appear on the end-of-period spreadsheet?

Accepted Answer

A)  adjusting entries 
B)  the unadjusted trial balance 
C)  closing entries 
D)  the dividends account 
A)  adjusting entries 
B)  the unadjusted trial balance 
C)  closing entries 
D)  the dividends account

Question 6

A post-closing trial balance should be prepared before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 7

The end-of-period spreadsheet is not considered a part of the formal accounting records.

Accepted Answer

A) True 
 B)False

Question 8

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

Accepted Answer

A)  net income of $21,720 
B)  net loss of $21,720 
C)  the accounts are out of balance, indicating an error has been made 
D)  the accounts have not been updated 
A)  net income of $21,720 
B)  net loss of $21,720 
C)  the accounts are out of balance, indicating an error has been made 
D)  the accounts have not been updated

Question 9

The end-of-period spreadsheet

Accepted Answer

A)  is an integral part of the accounting cycle 
B)  eliminates the need to rewrite the financial statements 
C)  is a working paper that is required 
D)  is used to summarize account balances and adjustments for the financial statements 
A)  is an integral part of the accounting cycle 
B)  eliminates the need to rewrite the financial statements 
C)  is a working paper that is required 
D)  is used to summarize account balances and adjustments for the financial statements

Question 10

Calculate the current ratio for each business below. Which business has the best short-term solvency position given your calculations?
​

Accepted Answer

Gamma Company has the best short-term so

Question 11

After posting the second closing entry to the income summary account, the balance will be equal to

Accepted Answer

A)  zero 
B)  stockholders' equity 
C)  revenues for the period 
D)  the net income or net loss for the period 
A)  zero 
B)  stockholders' equity 
C)  revenues for the period 
D)  the net income or net loss for the period

Question 12

Assets, liabilities, and stockholders' equity accounts are real accounts and do not get closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 13

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Accepted Answer

A) True 
 B)False

Question 14

Use this end-of-period spreadsheet to answer the questions that follow.
​
   ​
​
-The entry to close expenses would be

Accepted Answer

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

Question 15

Zeta Company has 12 workers who each earn $15 per hour and generally work a 40-hour workweek, although at times overtime work is required, for which workers are paid 1.5 times their regular hourly wage. Zeta pays wages in cash on Friday of each week for work performed that week. Zeta's Wages Expense ledger account for May is shown below.
​   ​
During the period May 27 through June 2, Zeta's workers worked a regular 40-hour week.
1. If Zeta Company uses reversing entries, journalize the entry made when payroll is paid in cash on June 2, assuming that appropriate reversing entry(ies) have been made at the beginning of June. You may omit posting references.
2. If Zeta Company does not use reversing entries, journalize the entry made when payroll is paid in cash on June 2. You may omit posting references.

Accepted Answer

If Zeta Company does not use reversing e

Question 16

The end-of-period spreadsheet is a tool that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Accepted Answer

A) True 
 B)False

Question 17

Kirk Enterprises offers rug cleaning services to business clients. Below is the adjustments data for the year ended July 31. Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.
Adjustments:
(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 18

The closing process is sometimes referred to as closing the books.

Accepted Answer

A) True 
 B)False

Question 19

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31.     
The entry required to close the expense accounts at the end of the period includes a:

Accepted Answer

A)  debit to Income Summary for $35,520 
B)  credit to Income Summary for $35,520 
C)  debit to Income Summary for $33,520 
D)  credit to Income Summary for $33,520 
A)  debit to Income Summary for $35,520 
B)  credit to Income Summary for $35,520 
C)  debit to Income Summary for $33,520 
D)  credit to Income Summary for $33,520

Question 20

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600.
​
What is Alpha Company's working capital?

Accepted Answer

$14,424​ = Current A

The last step of the accounting cycle is to prepare a post-closing trial balance.

Which of the statements below indicates that a company earned a net income for the period?

The income statement will present

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the retained earnings ending balance.

Which of the items below does not appear on the end-of-period spreadsheet?

A post-closing trial balance should be prepared before the financial statements are prepared.

The end-of-period spreadsheet is not considered a part of the formal accounting records.

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

The end-of-period spreadsheet

Calculate the current ratio for each business below. Which business has the best short-term solvency position given your calculations?

After posting the second closing entry to the income summary account, the balance will be equal to

Assets, liabilities, and stockholders' equity accounts are real accounts and do not get closed at the end of the period.

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Use this end-of-period spreadsheet to answer the questions that follow. -The entry to close expenses would be

The end-of-period spreadsheet is a tool that accountants can use to summarize adjusting entries and the account balances for the financial statements.

The closing process is sometimes referred to as closing the books.

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31. The entry required to close the expense accounts at the end of the period includes a:

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. What is Alpha Company's working capital?

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 last step of the accounting cycle is to prepare a post-closing trial balance.

Which of the statements below indicates that a company earned a net income for the period?

The income statement will present

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. ​ -Determine the retained earnings ending balance.

Which of the items below does not appear on the end-of-period spreadsheet?

A post-closing trial balance should be prepared before the financial statements are prepared.

The end-of-period spreadsheet is not considered a part of the formal accounting records.

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

The end-of-period spreadsheet

Calculate the current ratio for each business below. Which business has the best short-term solvency position given your calculations? ​

After posting the second closing entry to the income summary account, the balance will be equal to

Assets, liabilities, and stockholders' equity accounts are real accounts and do not get closed at the end of the period.

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Use this end-of-period spreadsheet to answer the questions that follow. ​ ​ ​ -The entry to close expenses would be

The end-of-period spreadsheet is a tool that accountants can use to summarize adjusting entries and the account balances for the financial statements.

The closing process is sometimes referred to as closing the books.

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31. The entry required to close the expense accounts at the end of the period includes a:

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. ​ What is Alpha Company's working capital?

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

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the retained earnings ending balance.

Calculate the current ratio for each business below. Which business has the best short-term solvency position given your calculations?

Use this end-of-period spreadsheet to answer the questions that follow. -The entry to close expenses would be

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. What is Alpha Company's working capital?