Question 1

The ending balance of retained earnings is

Accepted Answer

A)  $53,000 
B)  $47,000 
C)  $3,000 
D)  $50,000 
A)  $53,000 
B)  $47,000 
C)  $3,000 
D)  $50,000

Question 2

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 3

After Net Income or Loss is entered on the end-of-period spreadsheet,the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Accepted Answer

A) True 
 B)False

Question 4

The journal entry to close revenues would be:

Accepted Answer

A)  debit Income Summary,$155,000; credit Fees Earned,$155,000 
B)  debit Common Stock,$155,000; credit Fees Earned,$155,000 
C)  debit Fees Earned,$155,000; credit Income Summary,$155,000 
D)  credit Fees Earned,$155,000; credit Common Stock,$155,000 
A)  debit Income Summary,$155,000; credit Fees Earned,$155,000 
B)  debit Common Stock,$155,000; credit Fees Earned,$155,000 
C)  debit Fees Earned,$155,000; credit Income Summary,$155,000 
D)  credit Fees Earned,$155,000; credit Common Stock,$155,000

Question 5

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

Accepted Answer

A)  Rent Expense 
B)  Fees Earned 
C)  Income Summary 
D)  Depreciation Expense 
A)  Rent Expense 
B)  Fees Earned 
C)  Income Summary 
D)  Depreciation Expense

Question 6

The most important output of the accounting cycle is the financial statements.

Accepted Answer

A) True 
 B)False

Question 7

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 8

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Accepted Answer

A) True 
 B)False

Question 9

The income summary account is also called

Accepted Answer

A)  the imprest account 
B)  the clearing account 
C)  the adjustments account 
D)  the zero-out account 
A)  the imprest account 
B)  the clearing account 
C)  the adjustments account 
D)  the zero-out account

Question 10

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Accepted Answer

A) True 
 B)False

Question 11

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Accepted Answer

A)  is the amount of net income or loss 
B)  indicates there is an error on the end-of-period spreadsheet 
C)  is the amount of retained earnings 
D)  is the difference between revenue and expenses 
A)  is the amount of net income or loss 
B)  indicates there is an error on the end-of-period spreadsheet 
C)  is the amount of retained earnings 
D)  is the difference between revenue and expenses

Question 12

The entry to close Income Summary would be

Accepted Answer

A)  debit Common Stock,$50,000; credit Income Summary,$50,000 
B)  debit Income Summary,$155,000; credit Common Stock,$155,000 
C)  debit Income Summary,$50,000; credit Retained Earnings,$50,000 
D)  debit Common Stock,$9,000; credit Income Summary,$9,000 
A)  debit Common Stock,$50,000; credit Income Summary,$50,000 
B)  debit Income Summary,$155,000; credit Common Stock,$155,000 
C)  debit Income Summary,$50,000; credit Retained Earnings,$50,000 
D)  debit Common Stock,$9,000; credit Income Summary,$9,000

Question 13

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 14

Land is an example of a plant asset.

Accepted Answer

A) True 
 B)False

Question 15

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: ​
  Net income for the period is

Accepted Answer

A)  $5,500 
B)  $11,900 
C)  $17,400 
D)  $8,700 
A)  $5,500 
B)  $11,900 
C)  $17,400 
D)  $8,700

Question 16

A net loss appears on the end-of-period spreadsheet in the

Accepted Answer

A)  debit column of the Balance Sheet columns 
B)  credit column of the Balance Sheet columns 
C)  debit column of the Income Statement columns 
D)  credit column of the Adjustments columns 
A)  debit column of the Balance Sheet columns 
B)  credit column of the Balance Sheet columns 
C)  debit column of the Income Statement columns 
D)  credit column of the Adjustments columns

Question 17

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Accepted Answer

A)  the word "Total" written at the bottom of each pair of columns 
B)  the double rule under each pair of columns 
C)  the circles around each total 
D)  the final figures written in ink 
A)  the word "Total" written at the bottom of each pair of columns 
B)  the double rule under each pair of columns 
C)  the circles around each total 
D)  the final figures written in ink

Question 18

The statement of retained earnings should be prepared

Accepted Answer

A)  before the income statement and after the balance sheet 
B)  before the income statement and balance sheet 
C)  after the income statement and balance sheet 
D)  after the income statement and before the balance sheet 
A)  before the income statement and after the balance sheet 
B)  before the income statement and balance sheet 
C)  after the income statement and balance sheet 
D)  after the income statement and before the balance sheet

Question 19

All income statement accounts will be closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 20

On September 1,the company pays rent for twelve months in advance and debits an asset account.At year end,the adjusting entry on the end-of-period spreadsheet would

Accepted Answer

A)  increase an expense account 
B)  decrease a liability account 
C)  increase an asset account 
D)  decrease an expense account 
A)  increase an expense account 
B)  decrease a liability account 
C)  increase an asset account 
D)  decrease an expense account

Exam 4: Completing the Accounting Cycle

The ending balance of retained earnings is

The income statement will present

After Net Income or Loss is entered on the end-of-period spreadsheet,the debit column total must equal the credit column total for the Balance Sheet pair of columns.

The journal entry to close revenues would be:

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

The most important output of the accounting cycle is the financial statements.

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:

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

The income summary account is also called

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

The entry to close Income Summary would be

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

Land is an example of a plant asset.

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: ​ Net income for the period is

A net loss appears on the end-of-period spreadsheet in the

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

The statement of retained earnings should be prepared

All income statement accounts will be closed at the end of the period.

On September 1,the company pays rent for twelve months in advance and debits an asset account.At year end,the adjusting entry on the end-of-period spreadsheet would

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Merchandising 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

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

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:

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Net income for the period is