FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Completing the Accounting Cycle

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

Working capital is the excess of the current liabilities of a business over its current assets.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Closing entries are dated in the journal as of

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, although they are actually journalized after the end 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 period

E) A) and B)
F) B) and C)

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

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,a small proprietorship.Richard Tracy,the owner,is requesting $105,000 and brings you the following trial balance (or statement of accounts)for his 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?

Wages are $37,500 per week for a five-day workweek,ending on Friday.The last payday of the year was Friday,June 26.Determine the balance in Salaries Expense on July 1 after reversing entries have been journalized and posted to the ledger.

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments,they are simply added to the Account Title column.

Since the adjustments are entered on the work sheet,it is not necessary to record them in the journal or post them to the ledger.

The closing process is sometimes referred to as closing the books.

Prepaid Insurance is an example of a current asset.

The classified balance sheet will show which liability subsections?

Which of the following accounts would not appear in the Balance Sheet columns of the end-of-period spreadsheet?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -

Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?

Current assets and current liabilities for Brayden Company are as follows:​​ What is the working capital for 20Y9 and 20Y8?​

Current assets and current liabilities for Brayden Company are as follows:​​ The change in working capital from 20Y8 to 20Y9 indicates that Brayden will no longer be solvent.

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

Closing entries are entered directly on to the work sheet.

Indicate whether each of the following would be reported in the section of financial statements identified as (a)current asset, (b)property,plant,and equipment, (c)current liability, (d)revenue,or (e)expense:

Reversing entries are recorded after adjusting entries have been recorded and before closing entries are recorded for the same period.

Which of the following accounts will be debited in the closing entry at the end of the year?

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company.Utilize these adjusted values to perform the closing entries for Ladonna Douglas Company.​