Question 1

Round-tripping is when

Accepted Answer

A)  a selling company sells to a customer company with huge discounts. 
B)  a selling company pretends to sell to a fictitious company with the intent of inflating revenues 
C)  a selling company lends money to a customer company to increase assets. 
D)  a selling company lends money to a customer company to be used to purchase goods from the selling company. 
A)  a selling company sells to a customer company with huge discounts. 
B)  a selling company pretends to sell to a fictitious company with the intent of inflating revenues 
C)  a selling company lends money to a customer company to increase assets. 
D)  a selling company lends money to a customer company to be used to purchase goods from the selling company.

Question 2

Use the work sheet for Finley Company to answer the questions that follow.   The entry to close expenses would be

Accepted Answer

A)  Wages Expense 63,000 Rent Expense 18,000
Depreciation Expense 15,000
Income Summary 96,000 
B)  Expenses 96,000 Income Summary 96,000 
C)  Wages Expense 63,000 Rent Expense 18,000
Depreciation Expense 15,000
Dividends 96,000 
D)  Income Summary 96,000 Wages Expense 63,000
Rent Expense 18,000
Depreciation Expense 15,000 
A)  Wages Expense 63,000 Rent Expense 18,000
Depreciation Expense 15,000
Income Summary 96,000 
B)  Expenses 96,000 Income Summary 96,000 
C)  Wages Expense 63,000 Rent Expense 18,000
Depreciation Expense 15,000
Dividends 96,000 
D)  Income Summary 96,000 Wages Expense 63,000
Rent Expense 18,000
Depreciation Expense 15,000

Question 3

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

Accepted Answer

A) True 
 B)False

Question 4

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, prepare the closing entries for Perez Roofing Company.

Accepted Answer

The answer of On the basis of the following information...

Question 5

Notes receivable due in 350 days appear on the

Accepted Answer

A)  balance sheet in the current assets section 
B)  balance sheet in the fixed assets section 
C)  balance sheet in the current liabilities section 
D)  income statement as an expense 
A)  balance sheet in the current assets section 
B)  balance sheet in the fixed assets section 
C)  balance sheet in the current liabilities section 
D)  income statement as an expense

Question 6

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following account groups are all considered nominal accounts?

Accepted Answer

A)  Cash, Retained Earnings, Wages Payable 
B)  Prepaid Insurance, Property, Plant & Equipment, Fees Earned 
C)  Capital Stock, Dividends, Income Summary 
D)  Rent Revenue, Fees Earned, Miscellaneous Expense 
A)  Cash, Retained Earnings, Wages Payable 
B)  Prepaid Insurance, Property, Plant & Equipment, Fees Earned 
C)  Capital Stock, Dividends, Income Summary 
D)  Rent Revenue, Fees Earned, Miscellaneous Expense

Question 8

Financial statements should be prepared before the closing entries are journalized and posted.

Accepted Answer

A) True 
 B)False

Question 9

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

Accepted Answer

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

Question 10

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Accepted Answer

A) True 
 B)False

Question 11

The accumulated depreciation account is closed to the income summary account.

Accepted Answer

A) True 
 B)False

Question 12

On the balance sheet, stockholders' equity is

Accepted Answer

A)  added to assets and the two are equal to liabilities 
B)  added to liabilities and the two are equal to assets 
C)  subtracted from liabilities and the net amount is equal to assets 
D)  subtracted from assets and the net amount is equal to net income 
A)  added to assets and the two are equal to liabilities 
B)  added to liabilities and the two are equal to assets 
C)  subtracted from liabilities and the net amount is equal to assets 
D)  subtracted from assets and the net amount is equal to net income

Question 13

Marcus Enterprises began in 2011 when Damien Marcus invested $8,000 in exchange for capital stock. The following is the work sheet for the company at the end of the first year in business.
Marcus Enterprises
Work Sheet
For the Year Ended December 31, 2011
   Prepare the required closing entries for Marcus Enterprises for the year ended December 31, 2011.

Accepted Answer

The answer of Marcus Enterprises began in 2011 when Damien...

Question 14

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year-end.   Net income for the period is

Accepted Answer

A)  $16,500 
B)  $33,500 
C)  $18,500 
D)  $15,000 
A)  $16,500 
B)  $33,500 
C)  $18,500 
D)  $15,000

Question 15

The work sheet and the financial statements both require dollar signs.

Accepted Answer

A) True 
 B)False

Question 16

Closing entries

Accepted Answer

A)  need not be journalized if adjusting entries are prepared 
B)  need not be posted if the financial statements are prepared from the work sheet 
C)  are not needed if adjusting entries are prepared 
D)  must be journalized and posted 
A)  need not be journalized if adjusting entries are prepared 
B)  need not be posted if the financial statements are prepared from the work sheet 
C)  are not needed if adjusting entries are prepared 
D)  must be journalized and posted

Question 17

After posting the second closing entry to the income summary account, the balance will be equal to

Accepted Answer

A)  zero 
B)  retained earnings 
C)  revenues for the period 
D)  the net income or (loss) for the period 
A)  zero 
B)  retained earnings 
C)  revenues for the period 
D)  the net income or (loss) for the period

Question 18

Hakik Enterprises offers rug cleaning services to business clients. Below is the work sheet containing the trial balance for the month ended July 31, 2012.
   Enter the adjustments in the work sheet based on the data provided below. Then enter the adjusted account balances in the Adjusted Trial Balance columns.
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.
b) Accrued wages, $2.
c) Unused supplies on hand, $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

Accepted Answer

The answer of Hakik Enterprises offers rug cleaning services to...

Question 19

On the work sheet, the capital stock and dividends account balances are extended to the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 20

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows:
   Prepare the closing entry required to transfer the income or loss at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings. It's...

Round-tripping is when

Use the work sheet for Finley Company to answer the questions that follow. The entry to close expenses would be

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, prepare the closing entries for Perez Roofing Company.

Notes receivable due in 350 days appear on the

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Which of the following account groups are all considered nominal accounts?

Financial statements should be prepared before the closing entries are journalized and posted.

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

The accumulated depreciation account is closed to the income summary account.

On the balance sheet, stockholders' equity is

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year-end. Net income for the period is

The work sheet and the financial statements both require dollar signs.

Closing entries

After posting the second closing entry to the income summary account, the balance will be equal to

On the work sheet, the capital stock and dividends account balances are extended to the Balance Sheet columns.

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the closing entry required to transfer the income or loss at the end of the period.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Completing the Accounting Cycle

Round-tripping is when

Use the work sheet for Finley Company to answer the questions that follow. The entry to close expenses would be

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, prepare the closing entries for Perez Roofing Company.

Notes receivable due in 350 days appear on the

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Which of the following account groups are all considered nominal accounts?

Financial statements should be prepared before the closing entries are journalized and posted.

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

The accumulated depreciation account is closed to the income summary account.

On the balance sheet, stockholders' equity is

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year-end. Net income for the period is

The work sheet and the financial statements both require dollar signs.

Closing entries

After posting the second closing entry to the income summary account, the balance will be equal to

On the work sheet, the capital stock and dividends account balances are extended to the Balance Sheet columns.

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the closing entry required to transfer the income or loss at the end of the period.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters