Question 1

Reversing entries are linked to ________ and ________ that were created by adjusting entries at the end of the prior accounting period.

Accepted Answer

accrued as...

Question 2

Which of the following statements about a company's operating cycle is not true:

Accepted Answer

A)   Most operating cycles are less than one year.
B)   For a merchandiser selling products, the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
C)   The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.
D)   The length of a company's operating cycle depends on its activities.
E)   Non-current items are those expected to come due within one year or the company's operating cycle.F) None of the above
G) A) and D)

Question 3

Revenue accounts are temporary accounts that should begin each accounting period with zero balances.

Accepted Answer

A) True 
 B)False

Question 4

Palmer Company is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, has prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

Accepted Answer

A)   Prepare an unadjusted trial balance.
B)   Prepare a post-closing trial balance.
C)   Prepare a work sheet.
D)   Close temporary accounts.
E)   Prepare reversing entries.F) C) and E)
G) B) and E)

Question 5

The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements, and recording closing and adjusting entries.

Accepted Answer

A) True 
 B)False

Question 6

A company's post-closing trial balance has total debits of $40,560 and total credits of $40,650. Accordingly, the company should review for errors in the closing process.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements, and recording closing and adjusting entries.

Correct Answer
verified

A company's post-closing trial balance has total debits of $40,560 and total credits of $40,650. Accordingly, the company should review for errors in the closing process.

Correct Answer
verified

Revenue accounts are temporary accounts that should begin each accounting period with zero balances.

Correct Answer
verified

Which of the following statements about a company's operating cycle is not true:

Correct Answer
verified

Reversing entries are linked to and that were created by adjusting entries at the end of the prior accounting period.

Correct Answer
verified
accrued as...
View Answer

Palmer Company is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, has prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements, and recording closing and adjusting entries.

Correct AnswerverifiedShow Answer

A company's post-closing trial balance has total debits of $40,560 and total credits of $40,650. Accordingly, the company should review for errors in the closing process.

Correct AnswerverifiedShow Answer

Revenue accounts are temporary accounts that should begin each accounting period with zero balances.

Correct AnswerverifiedShow Answer

Which of the following statements about a company's operating cycle is not true:

Correct AnswerverifiedShow Answer

Reversing entries are linked to ________ and ________ that were created by adjusting entries at the end of the prior accounting period.

Correct Answerverifiedaccrued as...View AnswerShow Answer

Palmer Company is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, has prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Reversing entries are linked to and that were created by adjusting entries at the end of the prior accounting period.

Correct Answer
verified
accrued as...
View Answer

Correct Answer
verified