Question 1

The statement of shareholders' equity discloses the changes in the temporary shareholders' equity accounts.

Accepted Answer

A) True 
 B)False

Question 2

Somerset Leasing received $12,000 for 24 months' rent in advance.How should Somerset record this transaction?

Accepted Answer

The answer of Somerset Leasing received $12,000 for 24 months'...

Question 3

Which of the following is not an adjusting entry?

Accepted Answer

The answer of Which of the following is not an...

Question 4

Examples of internal transactions include all of the following except:

Accepted Answer

A) Writing off an uncollectible account. 
B) Recording the expiration of prepaid insurance. 
C) Recording unpaid salaries. 
D) Paying salaries to company employees. 
A) Writing off an uncollectible account. 
B) Recording the expiration of prepaid insurance. 
C) Recording unpaid salaries. 
D) Paying salaries to company employees.

Question 5

Presented below is income statement information of the Nebraska Corporation for the year
ended December 31,2016.   
Required:
Prepare the necessary closing entries at December 31,2016.

Accepted Answer

The answer of Presented below is income statement information of...

Question 6

An example of a contra account is:

Accepted Answer

A) Depreciation expense. 
B) Accounts receivable. 
C) Sales revenue. 
D) Accumulated depreciation. 
A) Depreciation expense. 
B) Accounts receivable. 
C) Sales revenue. 
D) Accumulated depreciation.

Question 7

The statement of cash flows summarizes transactions that caused cash to change during a reporting period.

Accepted Answer

A) True 
 B)False

Question 8

Permanent accounts would not include:

Accepted Answer

A) Interest expense. 
B) Salaries and wages payable. 
C) Prepaid rent. 
D) Deferred revenues. 
A) Interest expense. 
B) Salaries and wages payable. 
C) Prepaid rent. 
D) Deferred revenues.

Question 9

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 10

XYZ Corporation receives $100,000 from investors for issuing them shares of its stock.XYZ's journal entry to record this transaction would include a:

Accepted Answer

A) Debit to investments. 
B) Credit to retained earnings. 
C) Credit to capital stock. 
D) Credit to revenue. 
A) Debit to investments. 
B) Credit to retained earnings. 
C) Credit to capital stock. 
D) Credit to revenue.

Question 11

Prepare a classified balance sheet for China Tea Company as of December 31,2016.

Accepted Answer

The answer of Prepare a classified balance sheet for China...

Question 12

-Deferred revenues

Accepted Answer

The answer of  
-Deferred revenues...

Question 13

A sale on account would be recorded by:

Accepted Answer

A) Debiting revenue. 
B) Crediting assets. 
C) Crediting liabilities. 
D) Debiting assets. 
A) Debiting revenue. 
B) Crediting assets. 
C) Crediting liabilities. 
D) Debiting assets.

Question 14

-Retained earnings

Accepted Answer

The answer of  
-Retained earnings...

Question 15

On September 1,2016,Fortune Magazine sold 600 one-year subscriptions for $81 each.The total amount received was credited to deferred subscriptions revenue.What is the required adjusting entry at December 31,2016?

Accepted Answer

The answer of On September 1,2016,Fortune Magazine sold 600 one-year...

Question 16

What is the purpose of the closing process?

Accepted Answer

The closing process serves a dual purpos

Question 17

-Accounts receivable

Accepted Answer

The answer of  
-Accounts receivable...

Question 18

Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1,2016,and charged the $4,200 premium to Insurance expense.At its December 31,2016,year-end,Yummy Foods would record which of the following adjusting entries?

Accepted Answer

The answer of Yummy Foods purchased a two-year fire and...

Question 19

The closing process brings all temporary accounts to a zero balance and updates the balance in the retained earnings account.

Accepted Answer

A) True 
 B)False

Question 20

Fink Insurance collected premiums of $18,000,000 from its customers during the current year.The adjusted balance in the Deferred premiums account increased from $6 million to $8 million dollars during the year.What is Fink's revenue from insurance premiums recognized for the current year?

Accepted Answer

A) $10,000,000. 
B) $16,000,000. 
C) $18,000,000. 
D) $20,000,000. 
A) $10,000,000. 
B) $16,000,000. 
C) $18,000,000. 
D) $20,000,000.

Exam 2: Review of the Accounting Process

The statement of shareholders' equity discloses the changes in the temporary shareholders' equity accounts.

Somerset Leasing received $12,000 for 24 months' rent in advance.How should Somerset record this transaction?

Which of the following is not an adjusting entry?

Examples of internal transactions include all of the following except:

Presented below is income statement information of the Nebraska Corporation for the year ended December 31,2016. Required: Prepare the necessary closing entries at December 31,2016.

An example of a contra account is:

The statement of cash flows summarizes transactions that caused cash to change during a reporting period.

Permanent accounts would not include:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

XYZ Corporation receives $100,000 from investors for issuing them shares of its stock.XYZ's journal entry to record this transaction would include a:

Prepare a classified balance sheet for China Tea Company as of December 31,2016.

-Deferred revenues

A sale on account would be recorded by:

-Retained earnings

On September 1,2016,Fortune Magazine sold 600 one-year subscriptions for $81 each.The total amount received was credited to deferred subscriptions revenue.What is the required adjusting entry at December 31,2016?

What is the purpose of the closing process?

-Accounts receivable

Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1,2016,and charged the $4,200 premium to Insurance expense.At its December 31,2016,year-end,Yummy Foods would record which of the following adjusting entries?

The closing process brings all temporary accounts to a zero balance and updates the balance in the retained earnings account.

Fink Insurance collected premiums of $18,000,000 from its customers during the current year.The adjusted balance in the Deferred premiums account increased from $6 million to $8 million dollars during the year.What is Fink's revenue from insurance premiums recognized for the current year?

Environment and Theoretical Structure of Financial Accounting

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

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