Question 1

An account that is not closed at the end of the period is called a(n)________.

Accepted Answer

A) expense account 
B) temporary account 
C) permanent account 
D) revenue account 
A) expense account 
B) temporary account 
C) permanent account 
D) revenue account

Question 2

The entries that transfer the revenue,expense,and withdrawals balances to the Owner,Capital account to prepare the company's books for the next period are called ________.

Accepted Answer

A) closing entries 
B) opening entries 
C) adjusting entries 
D) temporary accounts 
A) closing entries 
B) opening entries 
C) adjusting entries 
D) temporary accounts

Question 3

The permanent accounts-assets,liabilities,and stockholders' equity-are closed to the Owner,Capital account.

Accepted Answer

A) True 
 B)False

Question 4

The ending balances in the Owner,Capital and Owner,Withdrawals accounts are shown on the income statement columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following account's balance is carried forward to the next accounting period?

Accepted Answer

A) Accumulated Depreciation 
B) Depreciation Expense 
C) Owner,Withdrawals 
D) Service Revenue 
A) Accumulated Depreciation 
B) Depreciation Expense 
C) Owner,Withdrawals 
D) Service Revenue

Question 6

The Cash account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 7

Adjusting journal entries are prepared ________.

Accepted Answer

A) after preparing the adjusted trial balance 
B) after preparing the unadjusted trial balance 
C) after posting the closing entries 
D) after preparing the financial statements 
A) after preparing the adjusted trial balance 
B) after preparing the unadjusted trial balance 
C) after posting the closing entries 
D) after preparing the financial statements

Question 8

The smaller the current ratio,the higher the firm's ability to repay its current debts.

Accepted Answer

A) True 
 B)False

Question 9

The following is the adjusted trial balance for Becker Photography.
 
After the closing entries,what will the final balance in R.Becker,Capital be?

Accepted Answer

A) $23,000 
B) $179,200 
C) $27,500 
D) $156,200 
A) $23,000 
B) $179,200 
C) $27,500 
D) $156,200

Question 10

Permanent accounts are not closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 11

The last two columns generally found on the right side of the worksheet are the income statement columns.

Accepted Answer

A) True 
 B)False

Question 12

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

Accepted Answer

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

Question 13

In the closing process,the Owner,Withdrawals account is closed to the Owner,Capital account.

Accepted Answer

A) True 
 B)False

Question 14

The following is the adjusted trial balance as of December 31,2016 of Mason Photography:
   
Provide the closing entry for revenues.

Accepted Answer

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

Question 15

The post-closing trial balance shows the updated Owner,Capital balance.

Accepted Answer

A) True 
 B)False

Question 16

Regarding a classified balance sheet,which of the following statements is correct?

Accepted Answer

A) Accounts are classified by their purchase dates. 
B) Account balances are listed from the highest amount to the lowest amount. 
C) Assets are listed in the order of their liquidity. 
D) Assets are listed in alphabetical order. 
A) Accounts are classified by their purchase dates. 
B) Account balances are listed from the highest amount to the lowest amount. 
C) Assets are listed in the order of their liquidity. 
D) Assets are listed in alphabetical order.

Question 17

The Supplies Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 18

As a part of the closing process,revenues and expenses may be closed to a temporary account called the Net Income (Loss)account.

Accepted Answer

A) True 
 B)False

Question 19

Ellis Service Company had the following unadjusted balances at December 31,2016: Salaries Payable,$0;Salaries Expense,$12,000.The following transactions took place on December 31,2016:
Accrued Salaries Expense,$5,000
Closed the Salaries Expense account.
The following transaction took place on January 4,2017:
Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2016 and $1,000 for the first few days in January 2017.
Prepare the journal entry for January 4,2017,assuming that reversing entries were not made.

Accepted Answer

The answer of Ellis Service Company had the following unadjusted...

Question 20

In a balance sheet,assets are classified as either current or long term,depending on their liquidity.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

An account that is not closed at the end of the period is called a(n)________.

The entries that transfer the revenue,expense,and withdrawals balances to the Owner,Capital account to prepare the company's books for the next period are called ________.

The permanent accounts-assets,liabilities,and stockholders' equity-are closed to the Owner,Capital account.

The ending balances in the Owner,Capital and Owner,Withdrawals accounts are shown on the income statement columns of the worksheet.

Which of the following account's balance is carried forward to the next accounting period?

The Cash account is a temporary account.

Adjusting journal entries are prepared ________.

The smaller the current ratio,the higher the firm's ability to repay its current debts.

The following is the adjusted trial balance for Becker Photography. After the closing entries,what will the final balance in R.Becker,Capital be?

Permanent accounts are not closed at the end of the accounting period.

The last two columns generally found on the right side of the worksheet are the income statement columns.

All assets that will not be converted to cash or used up within the business's operating cycle or one year,whichever is greater,are called ________.

In the closing process,the Owner,Withdrawals account is closed to the Owner,Capital account.

The following is the adjusted trial balance as of December 31,2016 of Mason Photography: Provide the closing entry for revenues.

The post-closing trial balance shows the updated Owner,Capital balance.

Regarding a classified balance sheet,which of the following statements is correct?

The Supplies Expense account is a temporary account.

As a part of the closing process,revenues and expenses may be closed to a temporary account called the Net Income (Loss)account.

In a balance sheet,assets are classified as either current or long term,depending on their liquidity.

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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