Question 1

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

Accepted Answer

A) True 
 B)False

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

Use the adjusted trial balance for Stockton Company below to answer the questions that follow.
  ​
-Determine the total assets.

Accepted Answer

A)   $25,130
B)   $16,830
C)   $22,930
D)   $24,030E) A) and D)
F) C) and D)

Question 4

The income statement should be prepared

Accepted Answer

A)   before the retained earnings statement and balance sheet
B)   after the retained earnings statement and before the balance sheet
C)   after the retained earnings statement and balance sheet
D)   after the balance sheet and before the retained earnings statementE) None of the above
F) B) and C)

Question 5

The balance sheet accounts are referred to as real or permanent accounts.

Accepted Answer

A) True 
 B)False

Question 6

The income summary account is also known as the clearing account.

Accepted Answer

A) True 
 B)False

Question 7

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 D)
F) All of the above

Question 8

A summary of selected ledger accounts appears below for Solomon's Electrical Services for the current calendar year-end. (1)   ​ The $18,000 debit to Retained Earnings on December 31 must represent

Accepted Answer

A)   dividends paid
B)   net income
C)   net loss
D)   sales of common stockE) A) and D)
F) B) and C)

Question 9

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Accepted Answer

A) True 
 B)False

Question 10

After analyzing transactions, the next step would be to post the transactions in the ledger.

Accepted Answer

A) True 
 B)False

Question 11

Stockholders' equity is

Accepted Answer

A)   added to assets and the two are equal to liabilities
B)   added to liabilities and the two are equal to assets
C)   subtracted from liabilities and the net amount is equal to assets
D)   equal to the total of assets and liabilitiesE) A) and B)
F) B) and C)

Question 12

What does working capital measure?

Accepted Answer

A)   the excess of a business's assets over its liabilities
B)   the excess of a business's current assets over its liabilities
C)   the excess of a business's current assets over its current liabilities
D)   the excess of a business's net income over its current liabilitiesE) B) and C)
F) None of the above

Question 13

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Accepted Answer

A)   post-closing, unadjusted, adjusted
B)   unadjusted, post-closing, adjusted
C)   unadjusted, adjusted, post-closing
D)   post-closing, adjusted, unadjustedE) B) and C)
F) A) and D)

Question 14

Accumulated Depreciation is a permanent account.

Accepted Answer

A) True 
 B)False

Question 15

There is really no benefit in preparing financial statements in any particular order.

Accepted Answer

A) True 
 B)False

Question 16

Prepare closing entries from the following end-of-period spreadsheet.

Accepted Answer

The answer of Prepare closing entries from the following end-of-period...

Question 17

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

Accepted Answer

A)   preparing the adjusted trial balance
B)   posting to the general ledger
C)   preparing the financial statements
D)   preparing the closing entriesE) C) and D)
F) B) and D)

Question 18

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

Accepted Answer

A)   $6,400 net income
B)   $6,400 net loss
C)   $83,900 net income
D)   $77,500 net lossE) A) and B)
F) A) and C)

Question 19

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) All of the above
F) None of the above

Question 20

On which financial statement will Income Summary be shown?

Accepted Answer

A)   retained earnings statement
B)   balance sheet
C)   income statement
D)   no financial statementE) All of the above
F) A) and B)

Exam 4: The Accounting Cycle

After analyzing transactions, the next step would be to post the transactions in the ledger.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

There is really no benefit in preparing financial statements in any particular order.

Correct AnswerverifiedShow Answer

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Correct AnswerverifiedShow Answer

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Correct AnswerverifiedShow Answer

Stockholders' equity is

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

The balance sheet accounts are referred to as real or permanent accounts.

Correct AnswerverifiedShow Answer

The income statement should be prepared

Correct AnswerverifiedShow Answer

On which financial statement will Income Summary be shown?

Correct AnswerverifiedShow Answer

A summary of selected ledger accounts appears below for Solomon's Electrical Services for the current calendar year-end. (1) ​ The $18,000 debit to Retained Earnings on December 31 must represent

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 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

Accumulated Depreciation is a permanent account.

Correct AnswerverifiedShow Answer

The income summary account is also known as the clearing account.

Correct AnswerverifiedShow Answer

What does working capital measure?

Correct AnswerverifiedShow Answer

Prepare closing entries from the following end-of-period spreadsheet.

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

Correct AnswerverifiedShow Answer

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. ​ -Determine the total assets.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A summary of selected ledger accounts appears below for Solomon's Electrical Services for the current calendar year-end. (1) The $18,000 debit to Retained Earnings on December 31 must represent

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the total assets.

Correct Answer
verified