Question 1

Which of the following accounts could not be classified as a current liability?

Accepted Answer

A)  Unearned revenues.
B)  Accounts payable.
C)  Notes payable (due in 11 months) .
D)  Current portion of long-term note payable.
E)  Notes payable (due in 5 years) .F) D) and E)
G) A) and D)

Question 2

Two common subgroups for liabilities on a classified balance sheet are:

Accepted Answer

A)  Current liabilities and intangible liabilities.
B)  Present liabilities and operating liabilities.
C)  General liabilities and specific liabilities.
D)  Intangible liabilities and long-term liabilities.
E)  Current liabilities and long-term liabilities.F) C) and E)
G) A) and E)

Question 3

The ______________ refers to the steps in preparing financial statements for users.

Accepted Answer

The answer of The ______________ refers to the steps in...

Question 4

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of the prior accounting period.
answers listed above can appear in any order as shown

Accepted Answer

accrued as...

Question 5

The recurring steps performed each reporting period in preparing financial statements,starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance,is referred to as the:

Accepted Answer

A)  Accounting period.
B)  Operating cycle.
C)  Accounting cycle.
D)  Closing cycle.
E)  Natural business year.F) C) and E)
G) B) and C)

Question 6

The ___________________ account is a temporary account used only in the closing process.

Accepted Answer

The answer of The ___________________ account is a temporary account...

Question 7

The calendar year-end adjusted trial balance for Blessinger Co.follows:  Required:
(a)Prepare a classified year-end balance sheet.(Note: A $9,000 installment on the long-term note payable is due within one year. )

Accepted Answer

*NI = $430,800 - $90,000 - $...

Question 8

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

Accepted Answer

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

Question 9

The current portion of long-term debt is classified in the ______________ section of the balance sheet.

Accepted Answer

The answer of The current portion of long-term debt is...

Question 10

Closing entries are required:

Accepted Answer

A)  If management has decided to cease operating the business.
B)  Only if the company adheres to the accrual method of accounting.
C)  If a company's bookkeeper does not choose to prepare reversing entries.
D)  If the temporary accounts are to reflect correct amounts for each accounting period.
E)  In order to satisfy the Internal Revenue Service guidelines.F) A) and C)
G) B) and E)

Question 11

Which of the following accounts are permanent (real) accounts?

Accepted Answer

A)  Fees earned.
B)  Office supplies expense.
C)  Interest revenue.
D)  Accounts payable.
E)  Salaries expense.F) All of the above
G) B) and D)

Question 12

The balances in the unadjusted columns of a work sheet will agree with:

Accepted Answer

A)  the balances reflected in the company's financial statements.
B)  the balances reflected in the company's unadjusted trial balance.
C)  whatever balances management has decided to report.
D)  the balances in the company's post-closing trial balance.
E)  the balances management budgeted for the accounting period.F) B) and D)
G) All of the above

Question 13

Kline Company accrued wages of $7,350 that were earned by employees unpaid at the end of 2014.Assuming Kline uses reversing entries,which of the following entries is appropriate for reversing the accrued wages at the beginning of 2015?

Accepted Answer

A)  Debit Wages Expense $7,350;credit Cash $7,350.
B)  Debit Wages Expense $7,350;credit Wages Payable $7,350.
C)  Debit Wages Payable $7,350;credit Cash $7,350.
D)  Debit Cash $7,350;credit Wages Expense $7,350.
E)  Debit Wages Payable $7,350;credit Wages Expense $7,350.F) A) and B)
G) A) and E)

Question 14

The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Brendon,Capital?

Accepted Answer

A)  $80,000.
B)  $64,400.
C)  $43,000.
D)  $32,400.
E)  $42,400.F) C) and E)
G) All of the above

Question 15

Flagg records adjusting entries at its December 31 year end.At December 31,employees had earned $12,000 of unpaid and unrecorded salaries.The next payday is January 3,at which time $30,000 will be paid.Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

Accepted Answer

A)  Debit Salaries expense $12,000;credit Salaries payable $12,000.
B)  Debit Salaries expense $18,000;debit Salaries payable $12,000;credit Cash $30,000.
C)  Debit Salaries payable $18,000;credit Cash $18,000.
D)  Debit Salaries payable $12,000,credit Salaries expense $12,000.
E)  Debit Salaries expense $18,000;credit Salaries payable $18,000.F) A) and E)
G) A) and C)

Question 16

When closing entries are made:

Accepted Answer

A)  All ledger accounts are closed to start the new accounting period.
B)  All temporary accounts are closed but permanent accounts are not closed.
C)  All real accounts are closed but nominal accounts are not closed.
D)  All permanent accounts are closed but nominal accounts are not closed.
E)  All balance sheet accounts are closed.F) A) and E)
G) A) and D)

Question 17

The Income Statement columns of the work sheet prepared for Crawford Delivery Service at current year-end are shown below.In addition,L.Crawford,Capital had a credit balance of $117,000 and L.Crawford,Withdrawals had a debit balance of $30,000 at year end.Prepare closing journal entries for this company.

Accepted Answer

The answer of The Income Statement columns of the work...

Question 18

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:

Accepted Answer

A)  Income Summary account.
B)  Closing account.
C)  Balance column account.
D)  Contra account.
E)  Nominal account.F) C) and D)
G) B) and C)

Question 19

The closing process is necessary in order to:

Accepted Answer

A)  Calculate net income or net loss for an accounting period.
B)  Ensure that all permanent accounts are closed to zero at the end of each accounting period.
C)  Ensure that the company complies with state laws.
D)  Ensure that net income or net loss and owner withdrawals for the period are closed into the owner's capital account.
E)  Ensure that management is aware of how well the company is operating.F) A) and D)
G) A) and C)

Question 20

Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company:

Accepted Answer

A)  $21,200.
B)  $45,600.
C)  $24,400.
D)  $95,600.
E)  $41,200.F) A) and E)
G) None of the above

Exam 4: Completing the Accounting Cycle

The ______________ refers to the steps in preparing financial statements for users.

Correct Answer
verified

Two common subgroups for liabilities on a classified balance sheet are:

Correct Answer
verified

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:

Correct Answer
verified

The recurring steps performed each reporting period in preparing financial statements,starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance,is referred to as the:

Correct Answer
verified

Reversing entries are linked to ________ and _ that were created by adjusting entries at the end of the prior accounting period. answers listed above can appear in any order as shown

Correct Answer
verified
accrued as...
View Answer

The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Brendon,Capital?

Correct Answer
verified

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

Correct Answer
verified

Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company:

Correct Answer
verified

Which of the following accounts are permanent (real) accounts?

Correct Answer
verified

When closing entries are made:

Correct Answer
verified

The balances in the unadjusted columns of a work sheet will agree with:

Correct Answer
verified

Correct Answer
verified

The calendar year-end adjusted trial balance for Blessinger Co.follows: Required: (a)Prepare a classified year-end balance sheet.(Note: A $9,000 installment on the long-term note payable is due within one year. )

Correct Answer
verified
*NI = $430,800 - $90,000 - $...
View Answer

Closing entries are required:

Correct Answer
verified

Which of the following accounts could not be classified as a current liability?

Correct Answer
verified

The closing process is necessary in order to:

Correct Answer
verified

Kline Company accrued wages of $7,350 that were earned by employees unpaid at the end of 2014.Assuming Kline uses reversing entries,which of the following entries is appropriate for reversing the accrued wages at the beginning of 2015?

Correct Answer
verified

The current portion of long-term debt is classified in the ______________ section of the balance sheet.

Correct Answer
verified

Correct Answer
verified

The ___________________ account is a temporary account used only in the closing process.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

The ______________ refers to the steps in preparing financial statements for users.

Correct AnswerverifiedShow Answer

Two common subgroups for liabilities on a classified balance sheet are:

Correct AnswerverifiedShow Answer

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:

Correct AnswerverifiedShow Answer

The recurring steps performed each reporting period in preparing financial statements,starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance,is referred to as the:

Correct AnswerverifiedShow Answer

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of the prior accounting period. answers listed above can appear in any order as shown

Correct Answerverifiedaccrued as...View AnswerShow Answer

The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Brendon,Capital?

Correct AnswerverifiedShow 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,had prepared an adjusted trial balance,and completed the financial statements.The next step in the accounting cycle is:

Correct AnswerverifiedShow Answer

Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company:

Correct AnswerverifiedShow Answer

Which of the following accounts are permanent (real) accounts?

Correct AnswerverifiedShow Answer

When closing entries are made:

Correct AnswerverifiedShow Answer

The balances in the unadjusted columns of a work sheet will agree with:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The calendar year-end adjusted trial balance for Blessinger Co.follows: Required: (a)Prepare a classified year-end balance sheet.(Note: A $9,000 installment on the long-term note payable is due within one year. )

Correct Answerverified *NI = $430,800 - $90,000 - $...View AnswerShow Answer

Closing entries are required:

Correct AnswerverifiedShow Answer

Which of the following accounts could not be classified as a current liability?

Correct AnswerverifiedShow Answer

The closing process is necessary in order to:

Correct AnswerverifiedShow Answer

Kline Company accrued wages of $7,350 that were earned by employees unpaid at the end of 2014.Assuming Kline uses reversing entries,which of the following entries is appropriate for reversing the accrued wages at the beginning of 2015?

Correct AnswerverifiedShow Answer

The current portion of long-term debt is classified in the ______________ section of the balance sheet.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The ___________________ account is a temporary account used only in the closing process.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Reversing entries are linked to ________ and _ that were created by adjusting entries at the end of the prior accounting period. answers listed above can appear in any order as shown

Correct Answer
verified
accrued as...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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*NI = $430,800 - $90,000 - $...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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