Question 1

Closing entries are dated in the journal as of

Accepted Answer

A)   the date they are actually journalized, although they are generally prepared after the end of the accounting period
B)   the last day of the accounting period
C)   the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period
D)   the first day of the subsequent accounting periodE) B) and C)
F) None of the above

Question 2

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Accepted Answer

A) True 
 B)False

Question 3

List and describe the purpose of the four closing entries.

Accepted Answer

1. Close revenues to Income Su...

Question 4

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 stockholders' 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 statementsE) A) and B)
F) A) and C)

Question 5

Working capital is the ratio of the current assets of a business to its current liabilities.

Accepted Answer

A) True 
 B)False

Question 6

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Accepted Answer

A) True 
 B)False

Question 7

Real accounts are not permanent accounts.

Accepted Answer

A) True 
 B)False

Question 8

Kirk Enterprises offers rug cleaning services to business clients. Below is the trial balance for Kirk Enterprises, which was prepared on the end-of-period spreadsheet for the year ended July 31.
​  REQUIRED: Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns.
a) Depreciation expense, $1,000
b) Wages accrued, but not paid, $2,000.
c) Supplies on hand, $8,000.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance at July 31, $9,000.

Accepted Answer

The answer of Kirk Enterprises offers rug cleaning services to...

Question 9

Prepaid Insurance is an example of a current asset.

Accepted Answer

A) True 
 B)False

Question 10

Prepaid expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 11

The income statement is prepared from

Accepted Answer

A)   the adjusted trial balance
B)   the Income Statement columns of the end-of-period spreadsheet
C)   either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet
D)   both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheetE) B) and D)
F) None of the above

Question 12

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing) ?

Accepted Answer

A)   analyze and record transactions, post transactions 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 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) B) and C)
F) A) and D)

Question 13

It is not necessary to post the closing entries to the general ledger.

Accepted Answer

A) True 
 B)False

Question 14

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Accepted Answer

A)   $4,020 net income
B)   $36,755 net loss
C)   $4,020 net loss
D)   $32,735 net incomeE) B) and C)
F) A) and B)

Question 15

The following balance sheet contains errors.
​
​  ​​
(a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

Accepted Answer

_TB2281_00
A corre...

Question 16

Match each journal entry that follows as one of the types of journal entries (a-c)  below.
-​Accounts Receivable 325
Fees Earned 325
(Customer billed for services performed.)

Accepted Answer

A)  Journal entries
B)  Adjusting journal entries
C)  Closing journal entriesD) None of the above
E) All of the above

Question 17

The first item appearing on the retained earnings statement is

Accepted Answer

A)   net income
B)   the ending balance of retained earnings
C)   dividends
D)   the beginning balance of retained earningsE) A) and D)
F) A) and C)

Question 18

A post-closing trial balance contains only asset and liability accounts.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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 ExpenseE) None of the above
F) All of the above

Exam 4: The Accounting Cycle

It is not necessary to post the closing entries to the general ledger.

Correct Answer
verified

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Correct Answer
verified

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

Correct Answer
verified

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Correct Answer
verified

Real accounts are not permanent accounts.

Correct Answer
verified

Which of the following account groups are nominal accounts?

Correct Answer
verified

Prepaid expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Correct Answer
verified

A post-closing trial balance contains only asset and liability accounts.

Correct Answer
verified

Closing entries are dated in the journal as of

Correct Answer
verified

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Correct Answer
verified

The first item appearing on the retained earnings statement is

Correct Answer
verified

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.)

Correct Answer
verified

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing) ?

Correct Answer
verified

Prepaid Insurance is an example of a current asset.

Correct Answer
verified

Correct Answer
verified

Working capital is the ratio of the current assets of a business to its current liabilities.

Correct Answer
verified

The income statement is prepared from

Correct Answer
verified

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

Correct Answer
verified

List and describe the purpose of the four closing entries.

Correct Answer
verified
1. Close revenues to Income Su...
View Answer

The following balance sheet contains errors. (a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

Correct Answer
verified
_TB2281_00
A corre...
View Answer

Exam 4: The Accounting Cycle

It is not necessary to post the closing entries to the general ledger.

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

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

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Correct AnswerverifiedShow Answer

Real accounts are not permanent accounts.

Correct AnswerverifiedShow Answer

Which of the following account groups are nominal accounts?

Correct AnswerverifiedShow Answer

Prepaid expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Correct AnswerverifiedShow Answer

A post-closing trial balance contains only asset and liability accounts.

Correct AnswerverifiedShow Answer

Closing entries are dated in the journal as of

Correct AnswerverifiedShow Answer

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Correct AnswerverifiedShow Answer

The first item appearing on the retained earnings statement is

Correct AnswerverifiedShow Answer

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.)

Correct AnswerverifiedShow Answer

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing) ?

Correct AnswerverifiedShow Answer

Prepaid Insurance is an example of a current asset.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Working capital is the ratio of the current assets of a business to its current liabilities.

Correct AnswerverifiedShow Answer

The income statement is prepared from

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

List and describe the purpose of the four closing entries.

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

The following balance sheet contains errors. ​ ​ ​​ (a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

Correct Answerverified_TB2281_00 ​A corre...View AnswerShow 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

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.)

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. Close revenues to Income Su...
View Answer

The following balance sheet contains errors. (a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

Correct Answer
verified
_TB2281_00
A corre...
View Answer