Question 1

Which of the following items is not used in preparing the statement of owner's equity?

Accepted Answer

A) Withdrawals. 
B) Net income. 
C) Additional investments. 
D) Adjusting entries. 
A) Withdrawals. 
B) Net income. 
C) Additional investments. 
D) Adjusting entries.

Question 2

The work sheet is prepared after the formal adjusting and closing entries.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a permanent account?

Accepted Answer

A) Supplies 
B) Accounts Receivable 
C) Withdrawals 
D) Unearned Revenue 
A) Supplies 
B) Accounts Receivable 
C) Withdrawals 
D) Unearned Revenue

Question 4

An important use of the work sheet is as a replacement for the annual financial statements.

Accepted Answer

A) True 
 B)False

Question 5

From the following items in the Income Statement columns of the work sheet of Lydon Industries at December 31,20x5,prepare the closing entries without explanations,assuming that a $75 withdrawal was made by the owner during the period.

Accepted Answer

The answer of From the following items in the Income...

Question 6

An expense account is closed with a credit to the expense account and a debit to Income Summary.

Accepted Answer

A) True 
 B)False

Question 7

The Withdrawals account bypasses the Income Summary account when it is being closed.

Accepted Answer

A) True 
 B)False

Question 8

Preparing the work sheet and recording closing entries are important steps that save money and prevent mistakes.

Accepted Answer

A) True 
 B)False

Question 9

Income Summary is closed with a debit to Income Summary and a credit to the Withdrawals account.

Accepted Answer

A) True 
 B)False

Question 10

The process of crossfooting on the work sheet results in the

Accepted Answer

A) Income Statement columns. 
B) Trial Balance columns. 
C) Adjusted Trial Balance columns. 
D) Adjustments columns. 
A) Income Statement columns. 
B) Trial Balance columns. 
C) Adjusted Trial Balance columns. 
D) Adjustments columns.

Question 11

An amount for owner's Capital would not appear in which of the following work sheet columns?

Accepted Answer

A) Income Statement 
B) Balance Sheet 
C) Trial Balance 
D) Adjusted Trial Balance 
A) Income Statement 
B) Balance Sheet 
C) Trial Balance 
D) Adjusted Trial Balance

Question 12

The Income Summary account appears in the income statement.

Accepted Answer

A) True 
 B)False

Question 13

Using the following information and the trial balance accounts and balances in the work sheet provided,complete the work sheet.
a.Expired insurance totals $8.
b.Of the unearned revenue,all has been earned by the balance sheet date.
c.Estimated depreciation of equipment is $6.
d.Accrued wages equal $6.
e.Unused supplies on hand are $4.

Accepted Answer

The answer of Using the following information and the trial...

Question 14

Preparation of closing entries

Accepted Answer

A) is an optional step in the accounting cycle. 
B) is the first step after posting to the general ledger. 
C) assist in achieving periodicity and accrual accounting. 
D) All of these choices. 
A) is an optional step in the accounting cycle. 
B) is the first step after posting to the general ledger. 
C) assist in achieving periodicity and accrual accounting. 
D) All of these choices.

Question 15

Permanent accounts are also known as nominal accounts.

Accepted Answer

A) True 
 B)False

Question 16

Doug Riley is the only accountant employed at Carmen Enterprises.When asked by the company president if the financial statements had been prepared yet,Doug answered that he had completed all of his work except the preparation of the statements.He added that the net income that would appear on the current income statement would be $392,180.Identify the two instances where Doug would have determined the net income before he actually prepared the financial statements.

Accepted Answer

Going through the steps of the accountin

Question 17

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:  
-The amount of net income (or net loss)for the period is

Accepted Answer

A) $300 net income. 
B) $900 net income. 
C) $600 net income. 
D) $300 net loss. 
A) $300 net income. 
B) $900 net income. 
C) $600 net income. 
D) $300 net loss.

Question 18

Which work sheet columns should contain "key letters"?

Accepted Answer

A) Balance Sheet 
B) Adjusted Trial Balance 
C) Trial Balance 
D) Adjustments 
A) Balance Sheet 
B) Adjusted Trial Balance 
C) Trial Balance 
D) Adjustments

Question 19

The amount for the Withdrawals account will appear in the Income Statement columns of a work sheet.

Accepted Answer

A) True 
 B)False

Question 20

Closing entries are made

Accepted Answer

A) to clear revenue and expense accounts of their balances. 
B) to clear withdrawals of its balance. 
C) to summarize a period's revenues and expenses. 
D) All of these choices. 
A) to clear revenue and expense accounts of their balances. 
B) to clear withdrawals of its balance. 
C) to summarize a period's revenues and expenses. 
D) All of these choices.

Exam 4: Completing the Accounting Cycle

Which of the following items is not used in preparing the statement of owner's equity?

The work sheet is prepared after the formal adjusting and closing entries.

Which of the following is not a permanent account?

An important use of the work sheet is as a replacement for the annual financial statements.

From the following items in the Income Statement columns of the work sheet of Lydon Industries at December 31,20x5,prepare the closing entries without explanations,assuming that a $75 withdrawal was made by the owner during the period.

An expense account is closed with a credit to the expense account and a debit to Income Summary.

The Withdrawals account bypasses the Income Summary account when it is being closed.

Preparing the work sheet and recording closing entries are important steps that save money and prevent mistakes.

Income Summary is closed with a debit to Income Summary and a credit to the Withdrawals account.

The process of crossfooting on the work sheet results in the

An amount for owner's Capital would not appear in which of the following work sheet columns?

The Income Summary account appears in the income statement.

Preparation of closing entries

Permanent accounts are also known as nominal accounts.

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: -The amount of net income (or net loss)for the period is

Which work sheet columns should contain "key letters"?

The amount for the Withdrawals account will appear in the Income Statement columns of a work sheet.

Closing entries are made

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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