Question 1

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Accepted Answer

A) True 
 B)False

Question 2

The classified balance sheet will have liabilities divided into the following subsections

Accepted Answer

A)   Current Liabilities and Long-Term Liabilities
B)   Current Liabilities and Other Liabilities
C)   Other Liabilities and Long-Term Liabilities
D)   Present Liabilities and Tomorrow's LiabilitiesE) B) and C)
F) None of the above

Question 3

A net loss appears on the work sheet in the

Accepted Answer

A)   debit column of the Balance Sheet columns
B)   credit column of the Balance Sheet columns
C)   debit column of the Income Statement columns
D)   credit column of the Adjustments columnsE) B) and C)
F) A) and D)

Question 4

A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 5

Reconstruct the adjusting and closing entries from the following T accounts.

Accepted Answer

Adjusting ...

Question 6

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for Mackenzie Company:
  Prepare a classified balance sheet.

Accepted Answer

The answer of The following data were taken from the...

Question 7

The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for the year ended December 31, 2011:

Accepted Answer

The answer of The following revenue and expense account balances...

Question 8

If the totals of the Income Statement debit and credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Accepted Answer

A) True 
 B)False

Question 9

During the end-of-period processing, which of the following best describes the logical order of steps?

Accepted Answer

A)   preparation of adjustments, adjusted trial balance, financial statements
B)   preparation of income statement, adjusted trial balance, balance sheet
C)   preparation of adjusted trial balance, cross-referencing, journalizing
D)   preparation of adjustments, adjusted trial balance, postingE) A) and B)
F) C) and D)

Question 10

Which item would appear in the Income Statement columns of the work sheet?

Accepted Answer

A)   Equipment
B)   Unearned Fees
C)   Prepaid Expense
D)   Net LossE) None of the above
F) All of the above

Question 11

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

Accepted Answer

A)   debit Retained Earnings, $45,000; credit Income Summary, $45,000
B)   debit Income Summary, $141,000; credit Retained Earnings, $141,000
C)   debit Income Summary, $45,000; credit Retained Earnings, $45,000
D)   debit Retained Earnings, $9,000; credit Income Summary, $9,000E) A) and B)
F) C) and D)

Question 12

The work sheet

Accepted Answer

A)   is an integral part of the accounting cycle.
B)   eliminates the need to rewrite the financial statements.
C)   is a working paper that is required.
D)   is used to summarize account balances and adjustments for the financial statements.E) All of the above
F) C) and D)

Question 13

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow.  Determine the Retained Earnings ending balance.

Accepted Answer

A)   $10,150
B)   $13,330
C)   $14,120
D)   $10,940E) B) and C)
F) None of the above

Question 14

When a work sheet is complete, the adjustment columns should have

Accepted Answer

A)   total credits greater than total debits if a net income was earned
B)   total debits greater than total credits if a net loss was incurred
C)   total debits greater than total credits if a net income was earned
D)   total debits equal total creditsE) None of the above
F) All of the above

Question 15

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Accepted Answer

A)   increase a liability account
B)   decrease an asset account
C)   decrease a revenue account
D)   decrease a liability accountE) A) and B)
F) All of the above

Question 16

After net income or loss is entered on the work sheet, the debit column total must equal the credit column total of the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 17

It is necessary to post the closing entries to the general ledger.

Accepted Answer

A) True 
 B)False

Question 18

Reconstruct adjusting and closing entries for the month ended September 30, 2011 from the T accounts below.

Accepted Answer

Adjusting ...

Question 19

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows:
  Prepare the entry required to close the expense accounts at the end of the period.

Accepted Answer

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

Question 20

Cross-referencing is useful in assuring that the debits and credits are in balance.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

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

Correct AnswerverifiedShow Answer

Reconstruct the adjusting and closing entries from the following T accounts.

Correct AnswerverifiedAdjusting ...View AnswerShow Answer

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. Determine the Retained Earnings ending balance.

Correct AnswerverifiedShow Answer

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for Mackenzie Company: Prepare a classified balance sheet.

Correct AnswerverifiedShow Answer

When a work sheet is complete, the adjustment columns should have

Correct AnswerverifiedShow Answer

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Correct AnswerverifiedShow Answer

After net income or loss is entered on the work sheet, the debit column total must equal the credit column total of the Balance Sheet columns.

Correct AnswerverifiedShow Answer

It is necessary to post the closing entries to the general ledger.

Correct AnswerverifiedShow Answer

If the totals of the Income Statement debit and credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Correct AnswerverifiedShow Answer

Which item would appear in the Income Statement columns of the work sheet?

Correct AnswerverifiedShow Answer

The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for the year ended December 31, 2011:

Correct AnswerverifiedShow Answer

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the expense accounts at the end of the period.

Correct AnswerverifiedShow Answer

During the end-of-period processing, which of the following best describes the logical order of steps?

Correct AnswerverifiedShow Answer

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Correct AnswerverifiedShow Answer

A net loss appears on the work sheet in the

Correct AnswerverifiedShow Answer

The classified balance sheet will have liabilities divided into the following subsections

Correct AnswerverifiedShow Answer

The work sheet

Correct AnswerverifiedShow Answer

Cross-referencing is useful in assuring that the debits and credits are in balance.

Correct AnswerverifiedShow Answer

A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Correct AnswerverifiedShow Answer

Reconstruct adjusting and closing entries for the month ended September 30, 2011 from the T accounts below.

Correct AnswerverifiedAdjusting ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
Adjusting ...
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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Adjusting ...
View Answer