Question 1

Which of the following is the usual final step in the accounting cycle?

Accepted Answer

A)  Journalizing transactions.
B)  Preparing an adjusted trial balance.
C)  Preparing a post-closing trial balance.
D)  Preparing the financial statements.
E)  Preparing a work sheet.F) B) and C)
G) A) and B)

Question 2

K.Canopy,the proprietor of Canopy Services,withdrew $5,700 from the business during the current year.The entry to close the withdrawals account at the end of the year is:

Accepted Answer

A)  Debit K Canopy,Withdrawals $5,700;credit Cash,$5,700
B)  Debit K.Canopy,Capital $5,700;credit K.Canopy,Withdrawals $5,700
C)  Debit K.Canopy,Withdrawals $5,700;credit K.Canopy,Capital $5,700
D)  Debit K.Canopy,Capital $5,700,credit Salary Expense $5,700
E)  Debit Income Summary $5,700;credit K Canopy,Capital $5,700F) A) and E)
G) B) and D)

Question 3

Revenues,expenses,withdrawals,and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

Accepted Answer

temporary ...

Question 4

Temporary accounts include all of the following except:

Accepted Answer

A)  Consulting revenue.
B)  Withdrawals.
C)  Rent expense.
D)  Prepaid rent.
E)  Income Summary.F) A) and B)
G) C) and D)

Question 5

Which of the following statements is incorrect?

Accepted Answer

A)  Permanent account is another name for nominal account.
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.F) A) and E)
G) B) and E)

Question 6

Journal entries recorded at the end of each accounting period to prepare the revenue,expense,and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

Accepted Answer

A)  Adjusting entries.
B)  Closing entries.
C)  Final entries.
D)  Work sheet entries.
E)  Updating entries.F) B) and E)
G) D) and E)

Question 7

Tara Westmont,the proprietor of Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and withdrew $18,000 from the business during the current year.The owner's capital account before closing had a balance of $297,000.The entry to close the Income Summary account at the end of the year,after revenue and expense accounts have been closed,is:

Accepted Answer

A)  Debit T.Westmont,Capital $297,000;credit Income Summary $297,000
B)  Debit T.Westmont,Capital $63,300;credit Income Summary $63,300
C)  Debit Income Summary $63,300;credit T.Westmont,Capital $63,300
D)  Debit Income Summary $81,300,credit T.Westmont,Capital $81,300
E)  Debit T.Westmont,Capital $81,300;credit Income Summary $81,300F) C) and D)
G) A) and D)

Question 8

Following are selected accounts and their balances for a company after the adjustments made on May 31,the end of its fiscal year.(All accounts have normal balances. )  Prepare all the necessary closing entries for this company.

Accepted Answer

The answer of Following are selected accounts and their balances...

Question 9

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Wilson Peters,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances. )

Accepted Answer

A)  $16,780 debit.
B)  $7,180 credit.
C)  $16,780 credit.
D)  $18,280 credit.
E)  $23,780 credit.F) None of the above
G) A) and C)

Question 10

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Accepted Answer

A)  Land.
B)  S.Stills,Withdrawal.
C)  Accounts Payable.
D)  Unearned Revenue.
E)  Prepaid Insurance.F) B) and E)
G) A) and B)

Question 11

At the beginning of the year,Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000.During the year,the company reported total revenues of $226,000 and expenses of $175,000.Also,owner withdrawals during the year totaled $48,000.Assuming no other changes to owner's capital,the balance in the owner's capital account at the end of the year would be:

Accepted Answer

A)  $174,000.
B)  $78,000.
C)  $171,000.
D)  $120,000.
E)  $123,000.F) A) and E)
G) A) and B)

Question 12

Reversing entries:

Accepted Answer

A)  Are necessary when journal entries have been incorrectly recorded.
B)  Are a required step in the accounting cycle.
C)  Will often result temporarily in abnormal account balances in some accounts.
D)  Are required only if the company uses accounting software to record journal entries.
E)  Must be made before preparing the post-closing trial balance.F) C) and D)
G) A) and B)

Question 13

If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance when the net income is added to the Balance Sheet and Statement of Owner's Equity Credit column,the cause could be:

Accepted Answer

A)  An expense entered in the Balance Sheet and Statement of Owner's Equity Debit column.
B)  A revenue entered in the Balance Sheet and Statement of Owner's Equity Credit column.
C)  An asset amount entered in the Income Statement and Statement of Owner's Equity Debit column.
D)  A liability amount entered in the Income Statement and Statement of Owner's Equity Credit column.
E)  An expense entered in the Balance Sheet and Statement of Owner's Equity Credit column.F) A) and C)
G) B) and D)

Question 14

Prepare a classified balance sheet for Martin Air Freight based on the adjusted trial balance shown below.  *$2,000 of the long-term note payable is due during the next year.

Accepted Answer

The answer of Prepare a classified balance sheet for Martin...

Question 15

Tara Westmont,the proprietor of Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and withdrew $18,000 from the business during the current year.The owner's capital account before closing had a balance of $297,000.The ending owner's capital balance after closing is:

Accepted Answer

A)  $185,000
B)  $63,300
C)  $81,300
D)  $360,300
E)  $378,300F) None of the above
G) B) and E)

Question 16

Assets,liabilities,and equity accounts are not closed;these accounts are called:

Accepted Answer

A)  Nominal accounts.
B)  Temporary accounts.
C)  Permanent accounts.
D)  Contra accounts.
E)  Accrued accounts.F) C) and D)
G) A) and E)

Question 17

A partially completed work sheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet and statement of owner's equity columns.

Accepted Answer

The answer of A partially completed work sheet is shown...

Question 18

A company's December 31 work sheet appears below with summary amounts in the Income Statement and Balance Sheet columns.Prepare the four necessary closing entries.

Accepted Answer

The answer of A company's December 31 work sheet appears...

Question 19

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 that provide more information.
C)  Broadly groups items into assets,liabilities and equity.
D)  Reports operating,investing,and financing activities.
E)  Reports the effect of profit and withdrawals on owner's capital.F) A) and D)
G) B) and E)

Question 20

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.F) A) and B)
G) A) and E)

Exam 4: Completing the Accounting Cycle

Correct Answer
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K.Canopy,the proprietor of Canopy Services,withdrew $5,700 from the business during the current year.The entry to close the withdrawals account at the end of the year is:

Correct Answer
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If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance when the net income is added to the Balance Sheet and Statement of Owner's Equity Credit column,the cause could be:

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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Correct Answer
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A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Wilson Peters,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances. )

Correct Answer
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Which of the following is the usual final step in the accounting cycle?

Correct Answer
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A partially completed work sheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet and statement of owner's equity columns.

Correct Answer
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A company's December 31 work sheet appears below with summary amounts in the Income Statement and Balance Sheet columns.Prepare the four necessary closing entries.

Correct Answer
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Prepare a classified balance sheet for Martin Air Freight based on the adjusted trial balance shown below. *$2,000 of the long-term note payable is due during the next year.

Correct Answer
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Temporary accounts include all of the following except:

Correct Answer
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Revenues,expenses,withdrawals,and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

Correct Answer
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temporary ...
View Answer

Journal entries recorded at the end of each accounting period to prepare the revenue,expense,and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

Correct Answer
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Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Correct Answer
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Reversing entries:

Correct Answer
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A classified balance sheet:

Correct Answer
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Following are selected accounts and their balances for a company after the adjustments made on May 31,the end of its fiscal year.(All accounts have normal balances. ) Prepare all the necessary closing entries for this company.

Correct Answer
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Assets,liabilities,and equity accounts are not closed;these accounts are called:

Correct Answer
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Tara Westmont,the proprietor of Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and withdrew $18,000 from the business during the current year.The owner's capital account before closing had a balance of $297,000.The ending owner's capital balance after closing is:

Correct Answer
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Which of the following statements is incorrect?

Correct Answer
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Exam 4: Completing the Accounting Cycle

Correct AnswerverifiedShow Answer

K.Canopy,the proprietor of Canopy Services,withdrew $5,700 from the business during the current year.The entry to close the withdrawals account at the end of the year is:

Correct AnswerverifiedShow Answer

If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance when the net income is added to the Balance Sheet and Statement of Owner's Equity Credit column,the cause could be:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Wilson Peters,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances. )

Correct AnswerverifiedShow Answer

Which of the following is the usual final step in the accounting cycle?

Correct AnswerverifiedShow Answer

A partially completed work sheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet and statement of owner's equity columns.

Correct AnswerverifiedShow Answer

A company's December 31 work sheet appears below with summary amounts in the Income Statement and Balance Sheet columns.Prepare the four necessary closing entries.

Correct AnswerverifiedShow Answer

Prepare a classified balance sheet for Martin Air Freight based on the adjusted trial balance shown below. *$2,000 of the long-term note payable is due during the next year.

Correct AnswerverifiedShow Answer

Temporary accounts include all of the following except:

Correct AnswerverifiedShow Answer

Revenues,expenses,withdrawals,and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

Correct Answerverifiedtemporary ...View AnswerShow Answer

Journal entries recorded at the end of each accounting period to prepare the revenue,expense,and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

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Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Correct AnswerverifiedShow Answer

Reversing entries:

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A classified balance sheet:

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Following are selected accounts and their balances for a company after the adjustments made on May 31,the end of its fiscal year.(All accounts have normal balances. ) Prepare all the necessary closing entries for this company.

Correct AnswerverifiedShow Answer

Assets,liabilities,and equity accounts are not closed;these accounts are called:

Correct AnswerverifiedShow Answer

Tara Westmont,the proprietor of Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and withdrew $18,000 from the business during the current year.The owner's capital account before closing had a balance of $297,000.The ending owner's capital balance after closing is:

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect?

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temporary ...
View Answer

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