Question 1

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

Accepted Answer

A)   debit to Income Summary for $37,000
B)   credit to Income Summary for $38,300
C)   debit to Income Summary for $38,300
D)   credit to Income Summary for $37,000E) A) and C)
F) C) and D)

Question 2

The usual presentation of the retained earnings statement is (1)Beginning balance,(2)Net income or loss,(3)Dividends,(4)Stockholders' contributions,(5)Ending balance.

Accepted Answer

A) True 
 B)False

Question 3

You have just accepted your first job out of college,which requires you to evaluate loan requests at Eastwood National Bank.The first loan request you receive is from Richard Enterprises.Richard Tracy,the CEO,is requesting $105,000 and brings you the following trial balance (or statement of accounts)for the first year of operations ended December 31.
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 4

Since the adjustments are entered on the end-of-period spreadsheet,it is not necessary to record them in the journal or post them to the ledger.

Accepted Answer

A) True 
 B)False

Question 5

The accumulated depreciation account is closed to the income summary account.

Accepted Answer

A) True 
 B)False

Question 6

Determine the total liabilities for the period.

Accepted Answer

A)   $1,900
B)   $6,200
C)   $4,300
D)   $20,240E) B) and C)
F) A) and C)

Question 7

Daniel Corporation's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation.The end-of-period spreadsheet at the end of August has $7,600 in the Balance Sheet Credit column for Accumulated Depreciation.What is the amount of the depreciation expense adjustment for the month of August?

Accepted Answer

A)   $12,550
B)   $7,600
C)   $4,950
D)   $2,650E) All of the above
F) B) and C)

Question 8

The dividends account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 9

Prepaid Insurance is an example of a current asset.

Accepted Answer

A) True 
 B)False

Question 10

Prepaid insurance is reported on the balance sheet as a

Accepted Answer

A)   current asset
B)   fixed asset
C)   current liability
D)   long-term liabilityE) B) and D)
F) All of the above

Question 11

The classified balance sheet will show which asset subsections?

Accepted Answer

A)   current assets and other equity
B)   current assets and property,plant,and equipment
C)   current liabilities and short-term assets
D)   other revenues and property,plant and equipmentE) C) and D)
F) None of the above

Question 12

Which of the following is not true about closing entries?

Accepted Answer

A)   There are four closing entries that update the stockholders' equity account.
B)   After the second closing entry,the income summary account is equal to the net income or loss for the period.
C)   All real accounts are closed at the end of the period.
D)   By closing nominal accounts at the end of the period to zero,it is possible to isolate next period's information correctly.E) B) and C)
F) A) and D)

Question 13

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Accepted Answer

A) True 
 B)False

Question 14

Common stock and dividends are reported in the stockholders' equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense.Which of the following amounts would be recorded as 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)   $7,700E) A) and D)
F) A) and C)

Question 16

A post-closing trial balance should be prepared before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 17

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) None of the above

Question 18

The majority of businesses end their fiscal year on December 31.

Accepted Answer

A) True 
 B)False

Question 19

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 stockholders' equity section
D)   income statement as revenueE) B) and D)
F) A) and C)

Question 20

The journal entry to close the Fees Earned,$750,and Rent Revenue,$175,accounts during the year-end closing process would be:

Accepted Answer

A)   Dec.31 Fees Earned 750Rent Revenue 175Income Summary 925
B)   Dec.31 Income Summary 925Fees Earned 750Rent Revenue 175
C)   ​Dec.31 Revenues 925Income Summary 925
D)   ​Dec.31 Income Summary 925Revenues 925E) A) and C)
F) A) and B)

Exam 4: Completing the Accounting Cycle

Prepaid Insurance is an example of a current asset.

Correct Answer
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Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Correct Answer
verified

The dividends account is a temporary account.

Correct Answer
verified

The majority of businesses end their fiscal year on December 31.

Correct Answer
verified

The classified balance sheet will show which asset subsections?

Correct Answer
verified

Prepaid insurance is reported on the balance sheet as a

Correct Answer
verified

The journal entry to close the Fees Earned,$750,and Rent Revenue,$175,accounts during the year-end closing process would be:

Correct Answer
verified

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

Correct Answer
verified

Unearned Fees appear on the

Correct Answer
verified

The accumulated depreciation account is closed to the income summary account.

Correct Answer
verified

Since the adjustments are entered on the end-of-period spreadsheet,it is not necessary to record them in the journal or post them to the ledger.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not true about closing entries?

Correct Answer
verified

Correct Answer
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The following adjustments migh...
View Answer

Correct Answer
verified

Determine the total liabilities for the period.

Correct Answer
verified

A post-closing trial balance should be prepared before the financial statements are prepared.

Correct Answer
verified

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

Correct Answer
verified

Common stock and dividends are reported in the stockholders' equity section of the balance sheet.

Correct Answer
verified

The usual presentation of the retained earnings statement is (1)Beginning balance,(2)Net income or loss,(3)Dividends,(4)Stockholders' contributions,(5)Ending balance.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Prepaid Insurance is an example of a current asset.

Correct AnswerverifiedShow Answer

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Correct AnswerverifiedShow Answer

The dividends account is a temporary account.

Correct AnswerverifiedShow Answer

The majority of businesses end their fiscal year on December 31.

Correct AnswerverifiedShow Answer

The classified balance sheet will show which asset subsections?

Correct AnswerverifiedShow Answer

Prepaid insurance is reported on the balance sheet as a

Correct AnswerverifiedShow Answer

The journal entry to close the Fees Earned,$750,and Rent Revenue,$175,accounts during the year-end closing process would be:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Unearned Fees appear on the

Correct AnswerverifiedShow Answer

The accumulated depreciation account is closed to the income summary account.

Correct AnswerverifiedShow Answer

Since the adjustments are entered on the end-of-period spreadsheet,it is not necessary to record them in the journal or post them to the ledger.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not true about closing entries?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe following adjustments migh...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Determine the total liabilities for the period.

Correct AnswerverifiedShow Answer

A post-closing trial balance should be prepared before the financial statements are prepared.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Common stock and dividends are reported in the stockholders' equity section of the balance sheet.

Correct AnswerverifiedShow Answer

The usual presentation of the retained earnings statement is (1)Beginning balance,(2)Net income or loss,(3)Dividends,(4)Stockholders' contributions,(5)Ending balance.

Correct AnswerverifiedShow Answer

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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 revenue accounts at the end of the period includes a

Correct Answer
verified

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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Correct Answer
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