Question 1

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 2

Closing entries

Accepted Answer

A)   are prepared before the financial statements.
B)   reduce the number of permanent accounts.
C)   cause the revenue and expense accounts to have zero balances.
D)   summarize the activity in every account.

Question 3

Prepare the necessary closing entries based on the following selected accounts.

Accepted Answer

The answer of Prepare the necessary closing entries based on...

Question 4

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Accepted Answer

A)   earned net income for the period.
B)   an error because debits do not equal credits.
C)   suffered a net loss for the period.
D)   to make an adjusting entry.

Question 5

The following lettered items represent a classification scheme for a balance sheet, and the numbered items represent accounts found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs.
A. Current assets E. Current liabilities
B. Long-term investments F. Long-term liabilities
C. Property, plant, and equipment G. Owner's equity
D. Intangible assets H. Not on the balance sheet
_____ 1. Accumulated Depreciation _____ 6. Inventory
_____ 2. Jones, Capital _____ 7. Patents
_____ 3. Interest Expense _____ 8. Prepaid Rent
_____ 4. Salary Payable _____ 9. Mortgage Payable
_____ 5. Jones, Drawing _____ 10. Land Held for Investment

Accepted Answer

1. C 6. A
2. G 7. D
...

Question 6

The owner's drawing account is a permanent account whose balance is carried forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Question 7

The following accounts were included on Megan's Style Consultants adjusted trial balance at December 31, 2010:  
(a) What are total current assets?
(b) What are total current liabilities?

Accepted Answer

(a) $5,500 + $11,000...

Question 8

The heading for a post-closing trial balance has a date line that is similar to the one found on

Accepted Answer

A)   a balance sheet.
B)   an income statement.
C)   an owner's equity statement.
D)   the worksheet.

Question 9

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:  What is total liabilities and owner's equity at December 31, 2010?

Accepted Answer

A)   $176,000
B)   $190,000
C)   $218,000
D)   $232,000

Question 10

An intangible asset

Accepted Answer

A)   does not have physical substance, yet often is very valuable.
B)   is worthless because it has no physical substance.
C)   is converted into a tangible asset during the operating cycle.
D)   cannot be classified on the balance sheet because it lacks physical substance.

Question 11

Intangible assets are

Accepted Answer

A)   listed under current assets on the balance sheet.
B)   not listed on the balance sheet because they do not have physical substance.
C)   noncurrent resources.
D)   listed as a long-term investment on the balance sheet.

Question 12

The worksheet does not show

Accepted Answer

A)   net income or loss for the period.
B)   revenue and expense account balances.
C)   the ending balance in the owner's capital account.
D)   the trial balance before adjustments.

Question 13

Closing the drawing account to Capital is not necessary if net income is greater than owner's drawings during the period.

Accepted Answer

A) True 
 B)False

Question 14

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

Closing entries are journalized and posted

Accepted Answer

A)   before the financial statements are prepared.
B)   after the financial statements are prepared.
C)   at management's discretion.
D)   at the end of each interim accounting period.

Question 16

Prepare the necessary correcting entry for each of the following.
a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash.
b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable.

Accepted Answer

The answer of Prepare the necessary correcting entry for each...

Question 17

If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity

Accepted Answer

A)   will increase because net income has occurred.
B)   will decrease because a net loss has occurred.
C)   is in error because a mistake has occurred.
D)   will not be affected.

Question 18

The most efficient way to accomplish closing entries is to

Accepted Answer

A)   credit the income summary account for each revenue account balance.
B)   debit the income summary account for each expense account balance.
C)   credit the owner's drawing balance directly to the income summary account.
D)   credit the income summary account for total revenues and debit the income summary account for total expenses.

Question 19

A business entity has only one accounting cycle over its economic existence.

Accepted Answer

A) True 
 B)False

Question 20

If a company utilizes reversing entries, they will

Accepted Answer

A)   be made at the beginning of the next accounting period.
B)   not actually be posted to the general ledger accounts.
C)   be made before the post-closing trial balance.
D)   be part of the adjusting entry process.

Exam 4: Completing the Accounting Cycle

The following accounts were included on Megan's Style Consultants adjusted trial balance at December 31, 2010: (a) What are total current assets? (b) What are total current liabilities?

Correct Answer
verified
(a) $5,500 + $11,000...
View Answer

Closing the drawing account to Capital is not necessary if net income is greater than owner's drawings during the period.

Correct Answer
verified

Prepare the necessary closing entries based on the following selected accounts.

Correct Answer
verified

The worksheet does not show

Correct Answer
verified

Intangible assets are

Correct Answer
verified

A business entity has only one accounting cycle over its economic existence.

Correct Answer
verified

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.

Correct Answer
verified

If a company utilizes reversing entries, they will

Correct Answer
verified

Prepare the necessary correcting entry for each of the following. a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash. b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable.

Correct Answer
verified

The most efficient way to accomplish closing entries is to

Correct Answer
verified

Correct Answer
verified
1. C 6. A
2. G 7. D
...
View Answer

The heading for a post-closing trial balance has a date line that is similar to the one found on

Correct Answer
verified

The owner's drawing account is a permanent account whose balance is carried forward to the next accounting period.

Correct Answer
verified

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

Correct Answer
verified

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: What is total liabilities and owner's equity at December 31, 2010?

Correct Answer
verified

Closing entries

Correct Answer
verified

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Correct Answer
verified

An intangible asset

Correct Answer
verified

Closing entries are journalized and posted

Correct Answer
verified

If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

The following accounts were included on Megan's Style Consultants adjusted trial balance at December 31, 2010: (a) What are total current assets? (b) What are total current liabilities?

Correct Answerverified(a) $5,500 + $11,000...View AnswerShow Answer

Closing the drawing account to Capital is not necessary if net income is greater than owner's drawings during the period.

Correct AnswerverifiedShow Answer

Prepare the necessary closing entries based on the following selected accounts.

Correct AnswerverifiedShow Answer

The worksheet does not show

Correct AnswerverifiedShow Answer

Intangible assets are

Correct AnswerverifiedShow Answer

A business entity has only one accounting cycle over its economic existence.

Correct AnswerverifiedShow Answer

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.

Correct AnswerverifiedShow Answer

If a company utilizes reversing entries, they will

Correct AnswerverifiedShow Answer

Prepare the necessary correcting entry for each of the following. a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash. b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable.

Correct AnswerverifiedShow Answer

The most efficient way to accomplish closing entries is to

Correct AnswerverifiedShow Answer

Correct Answerverified1. C 6. A2. G 7. D...View AnswerShow Answer

The heading for a post-closing trial balance has a date line that is similar to the one found on

Correct AnswerverifiedShow Answer

The owner's drawing account is a permanent account whose balance is carried forward to the next accounting period.

Correct AnswerverifiedShow Answer

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

Correct AnswerverifiedShow Answer

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: What is total liabilities and owner's equity at December 31, 2010?

Correct AnswerverifiedShow Answer

Closing entries

Correct AnswerverifiedShow Answer

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Correct AnswerverifiedShow Answer

An intangible asset

Correct AnswerverifiedShow Answer

Closing entries are journalized and posted

Correct AnswerverifiedShow Answer

If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity

Correct AnswerverifiedShow Answer

Correct Answer
verified
(a) $5,500 + $11,000...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1. C 6. A
2. G 7. D
...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified