Question 1

The income summary account is also called

Accepted Answer

A)   the imprest account
B)   the clearing account
C)   the adjustments account
D)   the zero-out accountE) A) and C)
F) A) and B)

Question 2

On September 1,the company pays rent for twelve months in advance and debits an asset account.At year end,the adjusting entry on the end-of-period spreadsheet would

Accepted Answer

A)   increase an expense account
B)   decrease a liability account
C)   increase an asset account
D)   decrease an expense accountE) B) and D)
F) B) and C)

Question 3

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Accepted Answer

A) True 
 B)False

Question 4

Land is an example of a plant asset.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

Accepted Answer

A)   Rent Expense
B)   Fees Earned
C)   Income Summary
D)   Depreciation ExpenseE) A) and D)
F) C) and D)

Question 6

A net loss appears on the end-of-period spreadsheet 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) All of the above
F) A) and B)

Question 7

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Accepted Answer

A)   is the amount of net income or loss
B)   indicates there is an error on the end-of-period spreadsheet
C)   is the amount of retained earnings
D)   is the difference between revenue and expensesE) B) and D)
F) All of the above

Question 8

The statement of retained earnings should be prepared

Accepted Answer

A)   before the income statement and after the balance sheet
B)   before the income statement and balance sheet
C)   after the income statement and balance sheet
D)   after the income statement and before the balance sheetE) A) and C)
F) C) and D)

Question 9

The ending balance of retained earnings is

Accepted Answer

A)   $53,000
B)   $47,000
C)   $3,000
D)   $50,000E) B) and C)
F) A) and D)

Question 10

The most important output of the accounting cycle is the financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Shores Sports rents canoes and kayaks.Below is the adjusted trial balance at December 31. ​
 The entry required to close the expense accounts at the end of the period includes a:

Accepted Answer

A)   debit to Income Summary for $35,520
B)   credit to Income Summary for $35,520
C)   debit to Income Summary for $33,520
D)   credit to Income Summary for $33,520E) A) and C)
F) A) and B)

Question 12

The entry to close Income Summary would be

Accepted Answer

A)   debit Common Stock,$50,000; credit Income Summary,$50,000
B)   debit Income Summary,$155,000; credit Common Stock,$155,000
C)   debit Income Summary,$50,000; credit Retained Earnings,$50,000
D)   debit Common Stock,$9,000; credit Income Summary,$9,000E) All of the above
F) B) and C)

Question 13

All income statement accounts will be closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 14

The income statement will present

Accepted Answer

A)   revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last
B)   revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last
C)   revenues less expenses (ordered in alphabetical order) 
D)   revenues less expenses (order is not important) E) B) and C)
F) All of the above

Question 15

After Net Income or Loss is entered on the end-of-period spreadsheet,the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Accepted Answer

A) True 
 B)False

Question 16

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Accepted Answer

A)   the word "Total" written at the bottom of each pair of columns
B)   the double rule under each pair of columns
C)   the circles around each total
D)   the final figures written in inkE) B) and C)
F) A) and C)

Question 17

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 accountE) None of the above
F) A) and B)

Question 18

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: ​
 Net income for the period is

Accepted Answer

A)   $5,500
B)   $11,900
C)   $17,400
D)   $8,700E) All of the above
F) B) and C)

Question 19

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Accepted Answer

A) True 
 B)False

Question 20

The journal entry to close revenues would be:

Accepted Answer

A)   debit Income Summary,$155,000; credit Fees Earned,$155,000
B)   debit Common Stock,$155,000; credit Fees Earned,$155,000
C)   debit Fees Earned,$155,000; credit Income Summary,$155,000
D)   credit Fees Earned,$155,000; credit Common Stock,$155,000E) B) and D)
F) B) and C)

Exam 4: Completing the Accounting Cycle

On September 1,the company pays rent for twelve months in advance and debits an asset account.At year end,the adjusting entry on the end-of-period spreadsheet would

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The entry to close Income Summary would be

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A net loss appears on the end-of-period spreadsheet in the

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Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

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The ending balance of retained earnings is

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All income statement accounts will be closed at the end of the period.

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The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: ​ Net income for the period is

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A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

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The statement of retained earnings should be prepared

Correct AnswerverifiedShow Answer

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

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Shores Sports rents canoes and kayaks.Below is the adjusted trial balance at December 31. ​ The entry required to close the expense accounts at the end of the period includes a:

Correct AnswerverifiedShow Answer

The income summary account is also called

Correct AnswerverifiedShow Answer

The journal entry to close revenues would be:

Correct AnswerverifiedShow Answer

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Correct AnswerverifiedShow Answer

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Correct AnswerverifiedShow Answer

The most important output of the accounting cycle is the financial statements.

Correct AnswerverifiedShow Answer

After Net Income or Loss is entered on the end-of-period spreadsheet,the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Correct AnswerverifiedShow Answer

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Correct AnswerverifiedShow Answer

Land is an example of a plant asset.

Correct AnswerverifiedShow Answer

The income statement will present

Correct AnswerverifiedShow Answer

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The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Net income for the period is

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Shores Sports rents canoes and kayaks.Below is the adjusted trial balance at December 31. The entry required to close the expense accounts at the end of the period includes a:

Correct Answer
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