Question 1

The Accounts Receivable account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 2

James Service Company earned revenues of $100,000 and incurred expenses of $107,000.Prepare the entry to close the Income Summary account.

Accepted Answer

The answer of James Service Company earned revenues of $100,000...

Question 3

Which of the following accounts has a balance equal to net income immediately before it is closed?

Accepted Answer

A) Income Summary 
B) Owner,Withdrawals 
C) Net Income 
D) Owner,Capital 
A) Income Summary 
B) Owner,Withdrawals 
C) Net Income 
D) Owner,Capital

Question 4

On December 31,2016,Axle Services Company prepared the following accrual adjustment:
   
Axle uses reversing entries.Prepare the reversing entry that would be prepared on January 1,2017.

Accepted Answer

The answer of On December 31,2016,Axle Services Company prepared the...

Question 5

Buildings,land,and equipment are classified as ________.

Accepted Answer

A) current assets 
B) long-term assets 
C) current liabilities 
D) long-term liabilities 
A) current assets 
B) long-term assets 
C) current liabilities 
D) long-term liabilities

Question 6

Liquidity is a measure of how ________.

Accepted Answer

A) quickly an asset may be converted into cash 
B) long an asset can be used 
C) easily an asset can be exchanged for another asset 
D) short an operating cycle is 
A) quickly an asset may be converted into cash 
B) long an asset can be used 
C) easily an asset can be exchanged for another asset 
D) short an operating cycle is

Question 7

The beginning balance in the Owner,Capital account of Cedar Technologies was $86,000.The revenues and expenses amounted to $55,000 and $43,000,respectively.During the year,the owner did not make any additional contributions or withdrawals.The balance of the Owner,Capital account will be $141,000 at the end of the year.

Accepted Answer

A) True 
 B)False

Question 8

Asset and liability accounts are closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 9

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 owner's withdrawals 
B) revenues,expenses,and owner's withdrawals 
C) assets,liabilities,and owner's equity 
D) revenues,expenses,and owner's equity 
A) assets,liabilities,and owner's withdrawals 
B) revenues,expenses,and owner's withdrawals 
C) assets,liabilities,and owner's equity 
D) revenues,expenses,and owner's equity

Question 10

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

Accepted Answer

A) debit Insurance Expense and credit Income Summary 
B) debit Insurance Expense and credit Owner,Capital 
C) debit Owner,Capital and credit Insurance Expense 
D) debit Income Summary and credit Insurance Expense 
A) debit Insurance Expense and credit Income Summary 
B) debit Insurance Expense and credit Owner,Capital 
C) debit Owner,Capital and credit Insurance Expense 
D) debit Income Summary and credit Insurance Expense

Question 11

The Owner,Capital account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 12

A company has $100,000 in current assets;$600,000 in total assets;$80,000 in current liabilities,and $120,000 in total liabilities.Calculate the current ratio of the company.(Round your answer to two decimals. )

Accepted Answer

A) 1.25 
B) 2.00 
C) 1.80 
D) 0.83 
A) 1.25 
B) 2.00 
C) 1.80 
D) 0.83

Question 13

Reversing entries are used in conjunction with ________.

Accepted Answer

A) accrual-type adjustments 
B) closing entries 
C) GAAP 
D) Unearned Revenue and Prepaid Rent 
A) accrual-type adjustments 
B) closing entries 
C) GAAP 
D) Unearned Revenue and Prepaid Rent

Question 14

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500.Interest Expense in the income statement column is $14,000.Which of the following entries would have caused this difference?

Accepted Answer

A) a $14,000 credit to Interest Expense in the worksheet's adjustments column 
B) a $14,000 credit to Interest Payable in the worksheet's adjustments column 
C) a $10,500 debit to Interest Expense in the worksheet's adjustments column 
D) a $10,500 credit to Interest Expense in the worksheet's adjustments column 
A) a $14,000 credit to Interest Expense in the worksheet's adjustments column 
B) a $14,000 credit to Interest Payable in the worksheet's adjustments column 
C) a $10,500 debit to Interest Expense in the worksheet's adjustments column 
D) a $10,500 credit to Interest Expense in the worksheet's adjustments column

Question 15

The balances of select accounts of Sandra Company as of December 31,2016 are given below:
 
The insurance has been prepaid until June 30,2017.Determine the amount of total current assets reported on the balance sheet.

Accepted Answer

A) $12,300 
B) $5,700 
C) $8,600 
D) $6,300 
A) $12,300 
B) $5,700 
C) $8,600 
D) $6,300

Question 16

The following is the adjusted trial balance as of December 31,2017 of Martin Watch Company:
   
Provide the closing entry for revenues.

Accepted Answer

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

Question 17

Reversing entries are dated on the first day of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an example of an intangible asset?

Accepted Answer

A) Equipment 
B) Plant 
C) Property 
D) Copyright 
A) Equipment 
B) Plant 
C) Property 
D) Copyright

Question 19

The financial statements are prepared from the ________.

Accepted Answer

A) adjusted trial balance 
B) chart of accounts 
C) statement of retained earnings 
D) unadjusted trial balance 
A) adjusted trial balance 
B) chart of accounts 
C) statement of retained earnings 
D) unadjusted trial balance

Question 20

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n)________ balance sheet.

Accepted Answer

A) report form 
B) unclassified form 
C) account form 
D) audited form 
A) report form 
B) unclassified form 
C) account form 
D) audited form

Exam 4: Completing the Accounting Cycle

The Accounts Receivable account is a permanent account.

James Service Company earned revenues of $100,000 and incurred expenses of $107,000.Prepare the entry to close the Income Summary account.

Which of the following accounts has a balance equal to net income immediately before it is closed?

On December 31,2016,Axle Services Company prepared the following accrual adjustment: Axle uses reversing entries.Prepare the reversing entry that would be prepared on January 1,2017.

Buildings,land,and equipment are classified as ________.

Liquidity is a measure of how ________.

Asset and liability accounts are closed to the Income Summary account.

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

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

The Owner,Capital account is a temporary account.

A company has $100,000 in current assets;$600,000 in total assets;$80,000 in current liabilities,and $120,000 in total liabilities.Calculate the current ratio of the company.(Round your answer to two decimals. )

Reversing entries are used in conjunction with ________.

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500.Interest Expense in the income statement column is $14,000.Which of the following entries would have caused this difference?

The balances of select accounts of Sandra Company as of December 31,2016 are given below: The insurance has been prepaid until June 30,2017.Determine the amount of total current assets reported on the balance sheet.

The following is the adjusted trial balance as of December 31,2017 of Martin Watch Company: Provide the closing entry for revenues.

Reversing entries are dated on the first day of the new accounting period.

Which of the following is an example of an intangible asset?

The financial statements are prepared from the ________.

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n)________ balance sheet.

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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