Question 1

Explain how net income or loss is determined by using the end-of-period spreadsheets.

Accepted Answer

The difference between the debits and cr...

Question 2

Which of the items below does not appear on the end-of-period spreadsheet?

Accepted Answer

A)  adjusting entries
B)  the unadjusted trial balance
C)  closing entries
D)  the dividends account

Question 3

During the closing process,some balance sheet accounts are closed and end the period with a zero balance.

Accepted Answer

A) True 
 B)False

Question 4

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Martin Corporation.Use these adjusted values to journalize the closing entries for Martin Corporation.

Accepted Answer

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

Question 5

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.

Accepted Answer

A) True 
 B)False

Question 6

The balance sheet accounts are referred to as real or permanent accounts.

Accepted Answer

A) True 
 B)False

Question 7

Once the adjusted trial balance is in balance,the flow of accounts will now go into the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

Indicate whether each of the following would be reported in the financial statements as a a current asset,b current liability,c revenue,or d expense:

Accepted Answer

1 current asset
2 current liab...

Question 9

The classified balance sheet will show which liability 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 liabilities

Question 10

Net income appears on the end-of-period spreadsheet in the

Accepted Answer

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

Question 11

Accumulated Depreciation appears on the

Accepted Answer

A)  balance sheet in the current assets section
B)  balance sheet in the property,plant,and equipment section
C)  balance sheet in the long-term liabilities section
D)  income statement as an operating expense

Question 12

Once the adjusting entries are posted,the adjusted trial balance is prepared to

Accepted Answer

A)  verify that the debits and credits are in balance
B)  verify that the net income correctly flows into the statement of shareholders' equity from the income statement
C)  verify that the net income loss is correct for the period
D)  verify the correct flow of accounts into the financial statements

Question 13

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 14

The work sheet is not considered a part of the formal accounting records.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

List and describe the purpose of the four closing entries.

Accepted Answer

1.  Close revenues to Income S...

Question 18

Diane's Designs purchased a one-year liability insurance policy on March 1 of this year for $8,400 and recorded it as a prepaid expense.Which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?

Accepted Answer

A)  $8,400
B)  $840
C)  $700
D)  $7,700

Question 19

Which of the following account groups are nominal accounts?

Accepted Answer

A)  Cash,Dividends,Wages Payable
B)  Prepaid Insurance,Equipment,Fees Earned
C)  Common Stock,Dividends,Income Summary
D)  Rent Revenue,Fees Earned,Miscellaneous Expense

Question 20

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

Accepted Answer

A)  The adjusted trial balance will show the net income loss as an additional account.
B)  Unlike the adjusted trial balance,the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance.
C)  The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
D)  The adjusted trial balance will be used to record the adjustments for the period.

Exam 4: Completing the Accounting Cycle

Accumulated Depreciation appears on the

Correct AnswerverifiedShow Answer

Diane's Designs purchased a one-year liability insurance policy on March 1 of this year for $8,400 and recorded it as a prepaid expense.Which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?

Correct AnswerverifiedShow Answer

Which of the items below does not appear on the end-of-period spreadsheet?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following account groups are nominal accounts?

Correct AnswerverifiedShow Answer

The work sheet is not considered a part of the formal accounting records.

Correct AnswerverifiedShow Answer

Once the adjusted trial balance is in balance,the flow of accounts will now go into the financial statements.

Correct AnswerverifiedShow Answer

List and describe the purpose of the four closing entries.

Correct Answerverified1. Close revenues to Income S...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Martin Corporation.Use these adjusted values to journalize the closing entries for Martin Corporation.

Correct AnswerverifiedShow Answer

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.

Correct AnswerverifiedShow Answer

The classified balance sheet will show which liability subsections?

Correct AnswerverifiedShow Answer

Indicate whether each of the following would be reported in the financial statements as a a current asset,b current liability,c revenue,or d expense:

Correct Answerverified1 current asset2 current liab...View AnswerShow Answer

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

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Once the adjusting entries are posted,the adjusted trial balance is prepared to

Correct AnswerverifiedShow Answer

The balance sheet accounts are referred to as real or permanent accounts.

Correct AnswerverifiedShow Answer

Net income appears on the end-of-period spreadsheet in the

Correct AnswerverifiedShow Answer

During the closing process,some balance sheet accounts are closed and end the period with a zero balance.

Correct AnswerverifiedShow Answer

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Correct AnswerverifiedShow Answer

Explain how net income or loss is determined by using the end-of-period spreadsheets.

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

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1. Close revenues to Income S...
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1 current asset
2 current liab...
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The difference between the debits and cr...
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