Question 1

The adjusting entry required to record accrued expenses includes:

Accepted Answer

A)  A credit to Cash.
B)  A debit to an asset.
C)  A credit to an asset.
D)  A credit to liability.E) B) and C)
F) A) and B)

Question 2

Frosty Inc.has the following balances on December 31 prior to closing entries:  Based upon the balances above,what net adjustment would be made to Retained Earnings due to closing entries?

Accepted Answer

A)  Increase of $11,000.
B)  Increase of $13,000.
C)  Increase of $12,000.
D)  Increase of $14,000.E) B) and C)
F) A) and B)

Question 3

Current assets are assets that provide a benefit to a company over more than one year.

Accepted Answer

A) True 
 B)False

Question 4

The following account balances appear in the 2015 adjusted trial balance of
Diamond Corporation: Common Stock,$21,000;Retained Earnings,$8,000;Dividends,
$2,000;Service Revenue,$30,000;Salaries Expense,$13,000;and Utilities Expense,
$7,000.No common stock was issued during the year.Prepare the statement of
stockholders' equity for the year ended December 31,2015.

Accepted Answer

The answer of The following account balances appear in the...

Question 5

The closing process includes which of the following?

Accepted Answer

A)  Closing the balance of the retained earnings account to zero.
B)  Closing the balance of only the dividends account to zero.
C)  Closing the balances of only revenue and expense accounts to zero.
D)  Closing the balances of revenue,expense and dividend accounts to zero.E) None of the above
F) A) and C)

Question 6

The following financial information is from Bronco Company.All debt is due within one year unless stated otherwise.  What is the amount of current liabilities?

Accepted Answer

A)  $63,000.
B)  $28,000.
C)  $45,600.
D)  $22,000.E) A) and D)
F) C) and D)

Question 7

A post-closing trial balance:

Accepted Answer

A)  Is a list of all accounts and their balances after adjusting entries.
B)  Is a list of all accounts and their balances before adjusting entries.
C)  Is a list of all accounts and their balances after closing entries.
D)  Is a trial balance adjusted for cash-basis accounting.E) None of the above
F) All of the above

Question 8

Pawn Shops Unlimited recorded the following four transactions during April.Which of these transactions would have the same income statement impact in April regardless of whether the company used accrual-basis or cash-basis accounting?

Accepted Answer

A)  Purchased $500 of office supplies on account (supplies were used in May and paid for in May) .
B)  Paid $1,800 for a six-month insurance policy covering the period July 1-December 31.
C)  Paid $700 for an advertisement that appeared in the May 17 edition of the Las Vegas Sun newspaper.
D)  Received $300 from customers for services performed in March.E) None of the above
F) All of the above

Question 9

The closing entry for expenses includes:

Accepted Answer

A)  A debit to Dividends and a credit to all expense accounts.
B)  A debit to Retained Earnings and a credit to all expense accounts.
C)  A debit to Revenues and a credit to Retained Earnings.
D)  A debit to Revenues and a credit to all expense accounts.E) A) and C)
F) A) and D)

Question 10

After closing entries are prepared,the balance of Retained Earnings is updated to reflect the activity in the revenue,expense,and dividend accounts for the period.

Accepted Answer

A) True 
 B)False

Question 11

The closing entry for expense accounts includes a debit to Retained Earnings and a credit to all expense accounts.

Accepted Answer

A) True 
 B)False

Question 12

The primary purpose of closing entries is to:

Accepted Answer

A)  Prove the equality of the debit and credit entries in the general journal.
B)  Ensure that all assets and liabilities are recognized in the appropriate period.
C)  Update the balance of Retained Earnings and prepare revenue,expense,and dividend accounts for next period's transactions.
D)  Assure that adjusting entries balance.E) A) and D)
F) All of the above

Question 13

Because cash-basis accounting violates both the revenue recognition principle and the matching principle,it is generally not accepted in preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 14

The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31,2015:
  Calculate the amount of revenues and expenses for 2015 under cash-basis accounting.

Accepted Answer

Cash-basis revenues = $20,000 ...

Question 15

The adjusting entry for an unearned revenue always includes a debit to an asset account and a credit to a revenue account.

Accepted Answer

A) True 
 B)False

Question 16

Of the following six accounts,which ones have temporary balances: (1) Service Revenue
(2) Dividends
(3) Salaries Expense
(4) Common Stock
(5) Retained Earnings
(6) Cash

Accepted Answer

A)  (1) , (2) ,and (3) .
B)  (4) , (5) ,and (6) .
C)  (2) , (4) ,and (5) .
D)  (1) , (3) ,and (5) .E) None of the above
F) A) and B)

Question 17

What is an accrued expense?

Accepted Answer

An accrued expense results fro...

Question 18

A company purchases one year of flood insurance in advance on May 1,paying $24,000 ($2,000/month).Record the adjusting entry on December 31.

Accepted Answer

The answer of A company purchases one year of flood...

Question 19

The Supplies account is an example of an accrued expense.

Accepted Answer

A) True 
 B)False

Question 20

An adjusted trial balance:

Accepted Answer

A)  Is a list of all accounts and their balances after adjusting entries.
B)  Is a list of all accounts and their balances before adjusting entries.
C)  Is a list of all accounts and their balances after closing entries.
D)  Is a trial balance adjusted for cash-basis accounting.E) B) and C)
F) None of the above

Exam 3: The Accounting Cycle: End of the Period

After closing entries are prepared,the balance of Retained Earnings is updated to reflect the activity in the revenue,expense,and dividend accounts for the period.

Correct Answer
verified

Of the following six accounts,which ones have temporary balances: (1) Service Revenue (2) Dividends (3) Salaries Expense (4) Common Stock (5) Retained Earnings (6) Cash

Correct Answer
verified

What is an accrued expense?

Correct Answer
verified
An accrued expense results fro...
View Answer

The closing process includes which of the following?

Correct Answer
verified

Current assets are assets that provide a benefit to a company over more than one year.

Correct Answer
verified

A company purchases one year of flood insurance in advance on May 1,paying $24,000 ($2,000/month).Record the adjusting entry on December 31.

Correct Answer
verified

The adjusting entry required to record accrued expenses includes:

Correct Answer
verified

Pawn Shops Unlimited recorded the following four transactions during April.Which of these transactions would have the same income statement impact in April regardless of whether the company used accrual-basis or cash-basis accounting?

Correct Answer
verified

Frosty Inc.has the following balances on December 31 prior to closing entries: Based upon the balances above,what net adjustment would be made to Retained Earnings due to closing entries?

Correct Answer
verified

The adjusting entry for an unearned revenue always includes a debit to an asset account and a credit to a revenue account.

Correct Answer
verified

The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31,2015: Calculate the amount of revenues and expenses for 2015 under cash-basis accounting.

Correct Answer
verified
Cash-basis revenues = $20,000 ...
View Answer

The Supplies account is an example of an accrued expense.

Correct Answer
verified

A post-closing trial balance:

Correct Answer
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An adjusted trial balance:

Correct Answer
verified

Correct Answer
verified

The primary purpose of closing entries is to:

Correct Answer
verified

The closing entry for expense accounts includes a debit to Retained Earnings and a credit to all expense accounts.

Correct Answer
verified

Because cash-basis accounting violates both the revenue recognition principle and the matching principle,it is generally not accepted in preparing financial statements.

Correct Answer
verified

The closing entry for expenses includes:

Correct Answer
verified

The following financial information is from Bronco Company.All debt is due within one year unless stated otherwise. What is the amount of current liabilities?

Correct Answer
verified

Exam 3: The Accounting Cycle: End of the Period

After closing entries are prepared,the balance of Retained Earnings is updated to reflect the activity in the revenue,expense,and dividend accounts for the period.

Correct AnswerverifiedShow Answer

Of the following six accounts,which ones have temporary balances: (1) Service Revenue (2) Dividends (3) Salaries Expense (4) Common Stock (5) Retained Earnings (6) Cash

Correct AnswerverifiedShow Answer

What is an accrued expense?

Correct AnswerverifiedAn accrued expense results fro...View AnswerShow Answer

The closing process includes which of the following?

Correct AnswerverifiedShow Answer

Current assets are assets that provide a benefit to a company over more than one year.

Correct AnswerverifiedShow Answer

A company purchases one year of flood insurance in advance on May 1,paying $24,000 ($2,000/month).Record the adjusting entry on December 31.

Correct AnswerverifiedShow Answer

The adjusting entry required to record accrued expenses includes:

Correct AnswerverifiedShow Answer

Pawn Shops Unlimited recorded the following four transactions during April.Which of these transactions would have the same income statement impact in April regardless of whether the company used accrual-basis or cash-basis accounting?

Correct AnswerverifiedShow Answer

Frosty Inc.has the following balances on December 31 prior to closing entries: Based upon the balances above,what net adjustment would be made to Retained Earnings due to closing entries?

Correct AnswerverifiedShow Answer

The adjusting entry for an unearned revenue always includes a debit to an asset account and a credit to a revenue account.

Correct AnswerverifiedShow Answer

The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31,2015: Calculate the amount of revenues and expenses for 2015 under cash-basis accounting.

Correct AnswerverifiedCash-basis revenues = $20,000 ...View AnswerShow Answer

The Supplies account is an example of an accrued expense.

Correct AnswerverifiedShow Answer

A post-closing trial balance:

Correct AnswerverifiedShow Answer

An adjusted trial balance:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The primary purpose of closing entries is to:

Correct AnswerverifiedShow Answer

The closing entry for expense accounts includes a debit to Retained Earnings and a credit to all expense accounts.

Correct AnswerverifiedShow Answer

Because cash-basis accounting violates both the revenue recognition principle and the matching principle,it is generally not accepted in preparing financial statements.

Correct AnswerverifiedShow Answer

The closing entry for expenses includes:

Correct AnswerverifiedShow Answer

The following financial information is from Bronco Company.All debt is due within one year unless stated otherwise. What is the amount of current liabilities?

Correct AnswerverifiedShow Answer

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An accrued expense results fro...
View Answer

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Cash-basis revenues = $20,000 ...
View Answer

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