Question 1

The drawing account is closed to the income summary account.

Accepted Answer

A) True 
 B)False

Question 2

Owner's 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)   equal to the total of assets and liabilitiesE) A) and B)
F) A) and C)

Question 3

The Statement of Owner's Equity begins with the beginning balance followed by

Accepted Answer

A)   plus Net Income (loss)  less withdrawals
B)   plus Net Income (loss)  plus investments
C)   plus investments less withdrawals
D)   plus investments plus Net Income (loss)  less withdrawalsE) A) and B)
F) None of the above

Question 4

You have just accepted your first job out of college, which requires you to evaluate loan requests at Beach Front National Bank. The first loan request you receive is from Surfer Dude Enterprises, a small proprietorship. Marty Monroe, the owner, is requesting $75,000 and brings you the following trial balance (or Statement of Accounts) for his first year of operations ended December 31, 2010.
Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared?

Accepted Answer

The following adjustments migh...

Question 5

Net income is shown on the work sheet in the Income Statement debit column and the Balance Sheet credit column.

Accepted Answer

A) True 
 B)False

Question 6

Capital and Drawing are reported in the owner's equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The following is the adjusted trial balance for Nadia Company.
  Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

Accepted Answer

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Question 9

The income summary account is also known as the clearing account.

Accepted Answer

A) True 
 B)False

Question 10

The post-closing trial balance will generally have fewer accounts than the trial balance.

Accepted Answer

A) True 
 B)False

Question 11

Accrued expenses are ordinarily listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)   Supplies Expense
B)   Accumulated Depreciation
C)   Prepaid Insurance
D)   Unearned RentE) A) and B)
F) A) and C)

Question 13

After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Accepted Answer

A) True 
 B)False

Question 14

The proper sequence of steps in the accounting cycle is as follows

Accepted Answer

A)   analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries
B)   prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger
C)   analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and finally prepare a post-closing trial balance
D)   prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entriesE) None of the above
F) A) and B)

Question 15

Unearned Fees appear on the

Accepted Answer

A)   balance sheet in the current assets section
B)   balance sheet as a current liability
C)   balance sheet in the owner's equity section
D)   income statement as revenueE) A) and D)
F) A) and C)

Question 16

The fiscal year selected by companies

Accepted Answer

A)   is the same as the calendar year
B)   begins with the first day of the month and ends on the last day of the twelfth month
C)   must always begin on January 1
D)   will change each yearE) B) and D)
F) A) and D)

Question 17

After net income is entered on the work sheet, the Balance Sheet debit and credit columns must

Accepted Answer

A)   be the same amount as the total amount of the Income Statement debit and credit columns
B)   equal each other
C)   be the same amount as the total amount in the Adjusted Trial Balance debit and credit columns
D)   not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheetE) B) and D)
F) B) and C)

Question 18

Accumulated Depreciation is a permanent account.

Accepted Answer

A) True 
 B)False

Question 19

Explain how net income or loss is determined by using the work sheet.

Accepted Answer

The difference between the debits and cr...

Question 20

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

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

Correct Answer
verified

Capital and Drawing are reported in the owner's equity section of the balance sheet.

Correct Answer
verified

Accumulated Depreciation is a permanent account.

Correct Answer
verified

After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Correct Answer
verified

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Correct Answer
verified

Unearned Fees appear on the

Correct Answer
verified

The drawing account is closed to the income summary account.

Correct Answer
verified

After net income is entered on the work sheet, the Balance Sheet debit and credit columns must

Correct Answer
verified

Owner's Equity is

Correct Answer
verified

Net income is shown on the work sheet in the Income Statement debit column and the Balance Sheet credit column.

Correct Answer
verified

Accrued expenses are ordinarily listed on the balance sheet as current assets.

Correct Answer
verified

Correct Answer
verified
The following adjustments migh...
View Answer

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Correct Answer
verified

The proper sequence of steps in the accounting cycle is as follows

Correct Answer
verified

The following is the adjusted trial balance for Nadia Company. Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

Correct Answer
verified
_TB2013_00...
View Answer

The post-closing trial balance will generally have fewer accounts than the trial balance.

Correct Answer
verified

The Statement of Owner's Equity begins with the beginning balance followed by

Correct Answer
verified

Explain how net income or loss is determined by using the work sheet.

Correct Answer
verified
The difference between the debits and cr...
View Answer

The fiscal year selected by companies

Correct Answer
verified

The income summary account is also known as the clearing account.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

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

Correct AnswerverifiedShow Answer

Capital and Drawing are reported in the owner's equity section of the balance sheet.

Correct AnswerverifiedShow Answer

Accumulated Depreciation is a permanent account.

Correct AnswerverifiedShow Answer

After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Correct AnswerverifiedShow Answer

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Correct AnswerverifiedShow Answer

Unearned Fees appear on the

Correct AnswerverifiedShow Answer

The drawing account is closed to the income summary account.

Correct AnswerverifiedShow Answer

After net income is entered on the work sheet, the Balance Sheet debit and credit columns must

Correct AnswerverifiedShow Answer

Owner's Equity is

Correct AnswerverifiedShow Answer

Net income is shown on the work sheet in the Income Statement debit column and the Balance Sheet credit column.

Correct AnswerverifiedShow Answer

Accrued expenses are ordinarily listed on the balance sheet as current assets.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe following adjustments migh...View AnswerShow Answer

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Correct AnswerverifiedShow Answer

The proper sequence of steps in the accounting cycle is as follows

Correct AnswerverifiedShow Answer

The following is the adjusted trial balance for Nadia Company. Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

Correct Answerverified_TB2013_00...View AnswerShow Answer

The post-closing trial balance will generally have fewer accounts than the trial balance.

Correct AnswerverifiedShow Answer

The Statement of Owner's Equity begins with the beginning balance followed by

Correct AnswerverifiedShow Answer

Explain how net income or loss is determined by using the work sheet.

Correct AnswerverifiedThe difference between the debits and cr...View AnswerShow Answer

The fiscal year selected by companies

Correct AnswerverifiedShow Answer

The income summary account is also known as the clearing account.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The following adjustments migh...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
The difference between the debits and cr...
View Answer

Correct Answer
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Correct Answer
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