Question 1

Under which of the following categories would Accounts Payable appear?

Accepted Answer

A) Long-term assets 
B) Current assets 
C) Long-term liabilities 
D) Current liabilities 
A) Long-term assets 
B) Current assets 
C) Long-term liabilities 
D) Current liabilities

Question 2

Answer the following questions regarding the current ratio:

Accepted Answer

The answer of Answer the following questions regarding the current...

Question 3

On December 31,2016,Axle Services Company prepared the following accrual adjustment:
   
The company paid salaries amounting to $1,500 on January 7,2017 for the two-week pay period that ended on January 6,2017.Journalize the entries for January 1,2017 and January 7,2017,assuming the company uses reversing entries.

Accepted Answer

On January 1,Axle Services Com

Question 4

A list of the accounts and their balances at the end of the period,after journalizing and posting the closing entries,is called ________.

Accepted Answer

A) chart of accounts 
B) adjusted trial balance 
C) post-closing trial balance 
D) pre-closing balance sheet 
A) chart of accounts 
B) adjusted trial balance 
C) post-closing trial balance 
D) pre-closing balance sheet

Question 5

The adjusting process zeroes out all revenue accounts and all expense accounts.

Accepted Answer

A) True 
 B)False

Question 6

Emerald Company earned revenues of $69,000 and incurred expenses of $77,000.No dividends were declared.Which of the following statements is correct?

Accepted Answer

A) The entry to close Income Summary is the same regardless of a net income or a net loss. 
B) Owner,Capital will be debited for $8,000 and Income Summary will be credited for $8,000. 
C) The entries to close revenues and expenses will differ if there is a net loss. 
D) The entry to close Income Summary requires a debit to the Income Summary account. 
A) The entry to close Income Summary is the same regardless of a net income or a net loss. 
B) Owner,Capital will be debited for $8,000 and Income Summary will be credited for $8,000. 
C) The entries to close revenues and expenses will differ if there is a net loss. 
D) The entry to close Income Summary requires a debit to the Income Summary account.

Question 7

Which of the following is true of a completed worksheet?

Accepted Answer

A) The total debits in the unadjusted trial balance column equal the total debits in the adjusted trial balance column. 
B) The total debits in the income statement column equal the total credits in the balance sheet column. 
C) The total debits in the income statement column equal the total debits in the balance sheet column. 
D) The total of all the debit columns is equal to the total of all the credit columns. 
A) The total debits in the unadjusted trial balance column equal the total debits in the adjusted trial balance column. 
B) The total debits in the income statement column equal the total credits in the balance sheet column. 
C) The total debits in the income statement column equal the total debits in the balance sheet column. 
D) The total of all the debit columns is equal to the total of all the credit columns.

Question 8

Maywood Company has a current ratio of 6.00.This indicates that the company has $6 in ________.

Accepted Answer

A) current liabilities for every $1 of current assets 
B) total assets for every $1 of current liabilities 
C) current assets for every $1 of current liabilities 
D) total assets for every $1 of current assets 
A) current liabilities for every $1 of current assets 
B) total assets for every $1 of current liabilities 
C) current assets for every $1 of current liabilities 
D) total assets for every $1 of current assets

Question 9

Which of the following accounts will be closed by crediting the Income Summary account?

Accepted Answer

A) Service Revenue 
B) Depreciation Expense 
C) Accounts Payable 
D) Accumulated Depreciation 
A) Service Revenue 
B) Depreciation Expense 
C) Accounts Payable 
D) Accumulated Depreciation

Question 10

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

Accepted Answer

A) True 
 B)False

Question 11

The post-closing trial balance shows the net income for the period just ended.

Accepted Answer

A) True 
 B)False

Question 12

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 financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of a 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 financial statements. 
C) The worksheet is a financial statement issued to the public to communicate the financial results of a company. 
D) The worksheet is a journal.

Question 13

Which of the following accounts will be closed by debiting the Income Summary account?

Accepted Answer

A) Owner,Capital 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense 
A) Owner,Capital 
B) Service Revenue 
C) Accounts Receivable 
D) Salaries Expense

Question 14

The time span during which cash is paid for goods and services,which are then sold to customers from whom the business collects cash,is called the ________.

Accepted Answer

A) production time 
B) operating cycle 
C) accounting cycle 
D) sales time 
A) production time 
B) operating cycle 
C) accounting cycle 
D) sales time

Question 15

The current ratio is calculated using the values from the income statement.

Accepted Answer

A) True 
 B)False

Question 16

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 17

Use the Adjusted Trial Balance for Anderson Service Company to prepare the classified balance sheet at September 30,2016.Use the report form.You must compute the ending balance of Owner's Equity.

Accepted Answer

Net Income: Service Revenue $27,500 less

Question 18

The net income of Harriet Company for the year is $25,000.The owner made withdrawals during the year of $30,000.Which of the following statements is true?

Accepted Answer

A) Owner,Capital account decreases by $25,000. 
B) Owner,Capital account decreases by $5,000. 
C) Owner,Capital account increases by $30,000. 
D) Owner,Capital will remain the same. 
A) Owner,Capital account decreases by $25,000. 
B) Owner,Capital account decreases by $5,000. 
C) Owner,Capital account increases by $30,000. 
D) Owner,Capital will remain the same.

Question 19

Which of the following accounts will be closed by debiting the Income Summary account?

Accepted Answer

A) Depreciation Expense 
B) Accounts Payable 
C) Service Revenue 
D) Accumulated Depreciation 
A) Depreciation Expense 
B) Accounts Payable 
C) Service Revenue 
D) Accumulated Depreciation

Question 20

Which of the following are NOT included in a post-closing trial balance?

Accepted Answer

A) Assets and liabilities 
B) Owner,Capital and assets 
C) Common Stock and liabilities 
D) Revenues and expenses 
A) Assets and liabilities 
B) Owner,Capital and assets 
C) Common Stock and liabilities 
D) Revenues and expenses

Exam 4: Completing the Accounting Cycle

Under which of the following categories would Accounts Payable appear?

Answer the following questions regarding the current ratio:

A list of the accounts and their balances at the end of the period,after journalizing and posting the closing entries,is called ________.

The adjusting process zeroes out all revenue accounts and all expense accounts.

Emerald Company earned revenues of $69,000 and incurred expenses of $77,000.No dividends were declared.Which of the following statements is correct?

Which of the following is true of a completed worksheet?

Maywood Company has a current ratio of 6.00.This indicates that the company has $6 in ________.

Which of the following accounts will be closed by crediting the Income Summary account?

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

The post-closing trial balance shows the net income for the period just ended.

Which of the following statements is true of the worksheet?

Which of the following accounts will be closed by debiting the Income Summary account?

The time span during which cash is paid for goods and services,which are then sold to customers from whom the business collects cash,is called the ________.

The current ratio is calculated using the values from the income statement.

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Use the Adjusted Trial Balance for Anderson Service Company to prepare the classified balance sheet at September 30,2016.Use the report form.You must compute the ending balance of Owner's Equity.

The net income of Harriet Company for the year is $25,000.The owner made withdrawals during the year of $30,000.Which of the following statements is true?

Which of the following accounts will be closed by debiting the Income Summary account?

Which of the following are NOT included in a post-closing trial balance?

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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