Question 1

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Accepted Answer

A) True 
 B)False

Question 2

The following are steps to the accounting cycle. Of the following, which step should be done first?

Accepted Answer

A)   Closing entries are journalized and posted to the ledger.
B)   Transactions are posted to the ledger.
C)   Adjusting entries are journalized and posted to the ledger.
D)   Financial statements are prepared.E) B) and C)
F) None of the above

Question 3

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Accepted Answer

A) True 
 B)False

Question 4

The following is the adjusted trial balance for Sandeep Company.
  Prepare closing entries and the post closing trial balance.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 5

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet for the year ended April 30, 2011, for Finnegan Co.:
  Prepare an income statement.

Accepted Answer

The answer of The following accounts were taken from the...

Question 6

The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for Mackenzie Company:
  Prepare a classified balance sheet.

Accepted Answer

The answer of The following data were taken from the...

Question 7

Which of the statements below indicates that a company earned a net income for the period?

Accepted Answer

A)   The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the work sheet.
B)   The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet.
C)   The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet.
D)   Cash inflows exceeded cash outflows.E) All of the above
F) B) and C)

Question 8

Closing entries are dated in the journal as of

Accepted Answer

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 after the end of the accounting period
D)   the first day of the subsequent accounting periodE) A) and B)
F) A) and C)

Question 9

In a computerized accounting system, a work sheet may not be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Balance Sheet accounts are not considered real accounts.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   $24,130
B)   $15,830
C)   $21,930
D)   $23,030E) A) and B)
F) A) and C)

Question 12

The classified balance sheet will have liabilities divided into the following subsections

Accepted Answer

A)   Current Liabilities and Long-Term Liabilities
B)   Current Liabilities and Other Liabilities
C)   Other Liabilities and Long-Term Liabilities
D)   Present Liabilities and Tomorrow's LiabilitiesE) A) and C)
F) C) and D)

Question 13

Which one of the fixed asset accounts listed below will not have a related contra asset account?

Accepted Answer

A)   Office Equipment
B)   Land
C)   Delivery Equipment
D)   BuildingE) None of the above
F) A) and B)

Question 14

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows:
 
 Prepare the entry required to close the expense accounts at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings. It's...

Question 15

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 16

An indication that the work sheet columns are in balance and the work sheet is completed is

Accepted Answer

A)   the word "Total" is written at the bottom of each pair of columns
B)   each pair of columns is double underlined
C)   each pair of columns has the totals circled
D)   the final figures are written in inkE) All of the above
F) None of the above

Question 17

Explain the differences between a nonclassified balance sheet and a classified balance sheet.

Accepted Answer

A classified balance sheet subsections a...

Question 18

Notes receivable due in 350 days appear on the

Accepted Answer

A)   balance sheet in the current assets section
B)   balance sheet in the fixed assets section
C)   balance sheet in the current liabilities section
D)   income statement as an expenseE) A) and B)
F) All of the above

Question 19

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

Accepted Answer

A) True 
 B)False

Question 20

The income statement is prepared from:

Accepted Answer

A)   either the post-closing trial balance or the unadjusted trial balance columns of the work sheet.
B)   either the unadjusted trial balance or the balance sheet columns of the work sheet.
C)   either the adjusted trial balance or the income statement columns of the work sheet.
D)   both the adjusted trial balance and the balance sheet columns of the work sheet.E) All of the above
F) A) and C)

Exam 4: Completing the Accounting Cycle

In a computerized accounting system, a work sheet may not be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Correct AnswerverifiedShow Answer

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet for the year ended April 30, 2011, for Finnegan Co.: Prepare an income statement.

Correct AnswerverifiedShow Answer

Which of the statements below indicates that a company earned a net income for the period?

Correct AnswerverifiedShow Answer

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

Correct AnswerverifiedShow Answer

An indication that the work sheet columns are in balance and the work sheet is completed is

Correct AnswerverifiedShow Answer

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the expense accounts at the end of the period.

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Which one of the fixed asset accounts listed below will not have a related contra asset account?

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The income statement is prepared from:

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The classified balance sheet will have liabilities divided into the following subsections

Correct AnswerverifiedShow Answer

The following is the adjusted trial balance for Sandeep Company. Prepare closing entries and the post closing trial balance.

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The following are steps to the accounting cycle. Of the following, which step should be done first?

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The following data were taken from the Balance Sheet columns of the work sheet for April 30, 2011 for Mackenzie Company: Prepare a classified balance sheet.

Correct AnswerverifiedShow Answer

Explain the differences between a nonclassified balance sheet and a classified balance sheet.

Correct AnswerverifiedA classified balance sheet subsections a...View AnswerShow Answer

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Correct AnswerverifiedShow Answer

Balance Sheet accounts are not considered real accounts.

Correct AnswerverifiedShow Answer

Notes receivable due in 350 days appear on the

Correct AnswerverifiedShow Answer

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Correct AnswerverifiedShow Answer

Closing entries are dated in the journal as of

Correct AnswerverifiedShow Answer

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A classified balance sheet subsections a...
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