Question 1

Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.

Accepted Answer

A) True 
 B)False

Question 2

A ____________________ helps in preparing financial statements, is useful in preparing interim statements, and is helpful in showing the effects of proposed transactions.

Accepted Answer

The answer of A ____________________ helps in preparing financial statements,...

Question 3

Permanent accounts include all of the following except:

Accepted Answer

A)   Accumulated Depreciation - Equipment.
B)   Prepaid Rent.
C)   Unearned Consulting Revenue.
D)   Accounts Payable.
E)   Depreciation Expense - Equipment.

Question 4

If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is:

Accepted Answer

A)   An expense amount placed in the Balance Sheet Credit column.
B)   A revenue amount placed in the Balance Sheet Debit column.
C)   A liability amount placed in the Income Statement Credit column.
D)   An asset amount placed in the Balance Sheet Credit column.
E)   A liability amount placed in the Balance Sheet Debit column.

Question 5

Which of the following statements is incorrect?

Accepted Answer

A)   Permanent accounts is another name for nominal accounts.
B)   Temporary accounts carry a zero balance at the beginning of each accounting period.
C)   The Income Summary account is a temporary account.
D)   Real accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence.
E)   The closing process applies only to temporary accounts.

Question 6

Closing entries are normally entered in the general journal and then posted to the work sheet.

Accepted Answer

A) True 
 B)False

Question 7

All of the following statements regarding the Income Statement columns on the worksheet are true except:

Accepted Answer

A)   The balances in the Income Statement credit column are revenues.
B)   The balances in the Income Statement credit column are unearned revenues.
C)   The balances in the Income Statement debit column are expenses.
D)   The difference between the totals of the Income Statement columns is net income or net loss.
E)   The net income or net loss from the Income Statement columns is entered in the Balance Sheet & Statement of Owner's Equity columns.

Question 8

Another name for temporary accounts is:

Accepted Answer

A)   Real accounts.
B)   Contra accounts.
C)   Accrued accounts.
D)   Balance column accounts.
E)   Nominal accounts.

Question 9

An expense account is normally closed by debiting Income Summary and crediting the expense account.

Accepted Answer

A) True 
 B)False

Question 10

A company has current assets of $15,000 and current liabilities of $9,500. Its current ratio is 1.6.
$15,000/$9,500 = 1.6

Accepted Answer

A) True 
 B)False

Question 11

Balance sheet accounts are called ____________________ accounts because they carry their balances to the next accounting period, and are not closed as long as the company continues to own the asset, owe the liability and have equity.

Accepted Answer

The answer of Balance sheet accounts are called ____________________ accounts...

Question 12

If all columns balance upon completion of a work sheet, you can be sure that no errors were made in preparing the work sheet.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true?

Accepted Answer

A)   Owner's capital must be closed each accounting period.
B)   A post-closing trial balance should include only permanent accounts.
C)   Information on the work sheet can be used in place of preparing financial statements.
D)   By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.
E)   Closing entries are only necessary if errors have been made.

Question 14

A company had revenues of $187,000 and expenses of $109,000 for the accounting period. The owner withdrew $37,000 during the year. Which of the following entries could not be a closing entry?

Accepted Answer

A)   Debit Income Summary $78,000; credit Owner's, Capital $78,000.
B)   Debit Capital $37,000; credit Withdrawals $37,000.
C)   Debit Revenues $187,000; credit Income Summary $187,000.
D)   Debit Income Summary $109,000, credit Expenses $109,000.
E)   Debit Income Summary $187,000; credit Revenues $187,000.

Question 15

A classified balance sheet:

Accepted Answer

A)   Measures a company's ability to pay its bills on time.
B)   Organizes assets and liabilities into important subgroups.
C)   Presents revenues, expenses, and net income.
D)   Reports operating, investing, and financing activities.
E)   Reports the effect of profit and withdrawals on owner's capital.

Question 16

The items that follow appeared in the Income Statement columns of the work sheet prepared for Armstrong Delivery Service at current year-end. In addition, L. Armstrong, Capital had a credit balance of $117,000 and L. Armstrong, Withdrawals had a debit balance of $30,000 at year end. Prepare closing journal entries for this company.

Accepted Answer

The answer of The items that follow appeared in the...

Question 17

Reversing entries are optional.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about a company's operating cycle is not true?

Accepted Answer

A)   Noncurrent items are those expected to come due within one year or the company's operating cycle.
B)   The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.
C)   The length of a company's operating depends on its activities.
D)   For a merchandiser selling products, the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
E)   Most operating cycles are less than one year.

Question 19

In the table below, indicate with an "X" in the proper column whether the account is a temporary (nominal) account or a permanent (real) account.

Accepted Answer

The answer of In the table below, indicate with an...

Question 20

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Permanent accounts include all of the following except:

Correct Answer
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If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is:

Correct Answer
verified

In the table below, indicate with an "X" in the proper column whether the account is a temporary (nominal) account or a permanent (real) account.

Correct Answer
verified

A classified balance sheet:

Correct Answer
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Closing entries are normally entered in the general journal and then posted to the work sheet.

Correct Answer
verified

Reversing entries are optional.

Correct Answer
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Which of the following statements is incorrect?

Correct Answer
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If all columns balance upon completion of a work sheet, you can be sure that no errors were made in preparing the work sheet.

Correct Answer
verified

A company has current assets of $15,000 and current liabilities of $9,500. Its current ratio is 1.6. $15,000/$9,500 = 1.6

Correct Answer
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Another name for temporary accounts is:

Correct Answer
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A company had revenues of $187,000 and expenses of $109,000 for the accounting period. The owner withdrew $37,000 during the year. Which of the following entries could not be a closing entry?

Correct Answer
verified

A ____________________ helps in preparing financial statements, is useful in preparing interim statements, and is helpful in showing the effects of proposed transactions.

Correct Answer
verified

Correct Answer
verified

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Correct Answer
verified

Balance sheet accounts are called ____________________ accounts because they carry their balances to the next accounting period, and are not closed as long as the company continues to own the asset, owe the liability and have equity.

Correct Answer
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All of the following statements regarding the Income Statement columns on the worksheet are true except:

Correct Answer
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An expense account is normally closed by debiting Income Summary and crediting the expense account.

Correct Answer
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Which of the following statements is true?

Correct Answer
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Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.

Correct Answer
verified

Which of the following statements about a company's operating cycle is not true?

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Permanent accounts include all of the following except:

Correct AnswerverifiedShow Answer

If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is:

Correct AnswerverifiedShow Answer

In the table below, indicate with an "X" in the proper column whether the account is a temporary (nominal) account or a permanent (real) account.

Correct AnswerverifiedShow Answer

A classified balance sheet:

Correct AnswerverifiedShow Answer

Closing entries are normally entered in the general journal and then posted to the work sheet.

Correct AnswerverifiedShow Answer

Reversing entries are optional.

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

If all columns balance upon completion of a work sheet, you can be sure that no errors were made in preparing the work sheet.

Correct AnswerverifiedShow Answer

A company has current assets of $15,000 and current liabilities of $9,500. Its current ratio is 1.6. $15,000/$9,500 = 1.6

Correct AnswerverifiedShow Answer

Another name for temporary accounts is:

Correct AnswerverifiedShow Answer

A company had revenues of $187,000 and expenses of $109,000 for the accounting period. The owner withdrew $37,000 during the year. Which of the following entries could not be a closing entry?

Correct AnswerverifiedShow Answer

A ____________________ helps in preparing financial statements, is useful in preparing interim statements, and is helpful in showing the effects of proposed transactions.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Correct AnswerverifiedShow Answer

Balance sheet accounts are called ____________________ accounts because they carry their balances to the next accounting period, and are not closed as long as the company continues to own the asset, owe the liability and have equity.

Correct AnswerverifiedShow Answer

All of the following statements regarding the Income Statement columns on the worksheet are true except:

Correct AnswerverifiedShow Answer

An expense account is normally closed by debiting Income Summary and crediting the expense account.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.

Correct AnswerverifiedShow Answer

Which of the following statements about a company's operating cycle is not true?

Correct AnswerverifiedShow Answer

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