Question 1

The reversing entry for Salaries is:

Accepted Answer

A)  debit Salaries Expense; credit Salaries Payable.
B)  debit Salaries Payable; credit Income Summary.
C)  debit Salaries Payable; credit Salaries Expense.
D)  debit Salaries Expense; credit Cash.E) A) and D)
F) None of the above

Question 2

The first step in the closing process is to:

Accepted Answer

A)  close all balances on the income statement debit column of the worksheet except Income Summary.
B)  transfer the balance from the Income Summary Account to the Capital Account.
C)  close all balances on the income statement credit column of the worksheet except Income Summary.
D)  transfer the balance of the Owner's Withdrawals Account to Capital.E) B) and C)
F) A) and B)

Question 3

If beginning inventory is $5,000, ending inventory is $3,000, net purchases is $12,000 and Freight-in is $400, what is the Cost of Goods Sold?

Accepted Answer

A)  $17,400
B)  $17,000
C)  $14,400
D)  $14,000E) A) and B)
F) A) and C)

Question 4

What is the name of the revenue account used by merchandise companies?

Accepted Answer

A)  Sales
B)  Interest Income
C)  Merchandise Inventory
D)  CapitalE) None of the above
F) A) and D)

Question 5

If beginning inventory is $5,000, ending inventory is $3,000, net purchases is $12,000 and Freight-in is $400, what is the Cost of Goods Available for Sale?

Accepted Answer

A)  $17,400
B)  $17,000
C)  $14,400
D)  $14,000E) A) and D)
F) B) and C)

Question 6

The left and right columns on the financial statements are used for debits and credits.

Accepted Answer

A) True 
 B)False

Question 7

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 8

Which of the following is an operating expense?

Accepted Answer

A)  Interest expense
B)  Interest revenue
C)  Salaries expense
D)  Freight-InE) C) and D)
F) A) and B)

Question 9

Which of the following accounts will appear on the post-closing trial balance?

Accepted Answer

A)  Capital
B)  Purchases
C)  Sales
D)  WithdrawalsE) A) and B)
F) B) and C)

Question 10

Non-operating expenses are found in the Cost of Goods Sold section of the income statement.

Accepted Answer

A) True 
 B)False

Question 11

Identify the category(s)of each of the accounts below.
Current Asset
Plant and Equipment
Current Liabilities
Long-Term Liabilities

Accepted Answer

a)Current Liabilities
b)Plant...

Question 12

Cost of Goods Sold includes:

Accepted Answer

A)  Freight-in.
B)  Freight-out.
C)  Interest Income.
D)  Net Sales.E) None of the above
F) B) and D)

Question 13

The entry to adjust salaries was done twice. This error would cause:

Accepted Answer

A)  liabilities to be understated.
B)  liabilities to be overstated.
C)  expenses to be understated.
D)  Capital to be overstated.E) B) and D)
F) None of the above

Question 14

After the closing entries have been posted:

Accepted Answer

A)  the temporary accounts are zeroed out.
B)  the Capital account includes the current net profit or loss.
C)  the post-closing trial balance is prepared.
D)  All of these answers are correct.E) B) and C)
F) All of the above

Question 15

The post-closing trial balance is prepared from:

Accepted Answer

A)  the income statement columns on the worksheet.
B)  the balance sheet columns on the worksheet.
C)  the trial balance columns on the worksheet.
D)  the general ledger.E) A) and B)
F) A) and D)

Question 16

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 17

The adjusting entry to record rental income that is earned would be a debit to Rental Income and a credit to Unearned Rent.

Accepted Answer

A) True 
 B)False

Question 18

A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

Accepted Answer

A) True 
 B)False

Question 19

In which section does Interest Revenue appear in the Income Statement?

Accepted Answer

A)  Other Income
B)  Other Expense
C)  Selling Expenses
D)  Administrative ExpensesE) None of the above
F) B) and C)

Question 20

The following accounts are on the Balance Sheet section of Great Lakes Camping worksheet for the month ended January 31, 200x. Required: Prepare a classified balance sheet.
  Additional information: Withdrawals for the period are $2, and Net Income is $3.

Accepted Answer

Current Assets:

Plant and ...

Exam 12: Completion of the Accounting Cycle for a Merchandise Company

The following accounts are on the Balance Sheet section of Great Lakes Camping worksheet for the month ended January 31, 200x. Required: Prepare a classified balance sheet. Additional information: Withdrawals for the period are $2, and Net Income is $3.

Correct Answerverified Current Assets: Plant and ...View AnswerShow Answer

Which of the following accounts will appear on the post-closing trial balance?

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Non-operating expenses are found in the Cost of Goods Sold section of the income statement.

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What is the name of the revenue account used by merchandise companies?

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In which section does Interest Revenue appear in the Income Statement?

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The left and right columns on the financial statements are used for debits and credits.

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The entry to adjust salaries was done twice. This error would cause:

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The first step in the closing process is to:

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If beginning inventory is $5,000, ending inventory is $3,000, net purchases is $12,000 and Freight-in is $400, what is the Cost of Goods Sold?

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The reversing entry for Salaries is:

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If beginning inventory is $5,000, ending inventory is $3,000, net purchases is $12,000 and Freight-in is $400, what is the Cost of Goods Available for Sale?

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Which of the following is an operating expense?

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Identify the category(s)of each of the accounts below. Current Asset Plant and Equipment Current Liabilities Long-Term Liabilities

Correct Answerverified a)Current Liabilitiesb)Plant...View AnswerShow Answer

The post-closing trial balance is prepared from:

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A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

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Cost of Goods Sold includes:

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For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

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For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

Correct AnswerverifiedShow Answer

The adjusting entry to record rental income that is earned would be a debit to Rental Income and a credit to Unearned Rent.

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After the closing entries have been posted:

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Current Assets:
Plant and ...
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a)Current Liabilities
b)Plant...
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