Question 1

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.

Accepted Answer

A) True 
 B)False

Question 2

On which financial statement will Income Summary be shown?

Accepted Answer

A)   Statement of Owner's Equity
B)   Balance Sheet
C)   Income Statement
D)   No financial statementE) None of the above
F) B) and C)

Question 3

Which of the accounts below would not appear in the balance sheet columns of the worksheet?

Accepted Answer

A)   Chad Daniels, Drawing
B)   Rent Earned
C)   Unearned Revenue
D)   Chad Daniels, Drawing and Unearned RevenueE) A) and B)
F) All of the above

Question 4

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Accepted Answer

A) True 
 B)False

Question 5

After net income is entered on the work sheet, the Balance Sheet debit and credit columns must

Accepted Answer

A)   be the same amount as the total amount of the Income Statement debit and credit columns
B)   equal each other
C)   be the same amount as the total amount in the Adjusted Trial Balance debit and credit columns
D)   not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheetE) C) and D)
F) B) and C)

Question 6

Accrued taxes payable are generally reported on the balance sheet as a current liability.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)   Salaries Expense
B)   Fees Earned
C)   Unearned Rent
D)   Depreciation ExpenseE) A) and B)
F) A) and C)

Question 8

Which of the accounts below would appear in the Balance Sheet columns of the work sheet?

Accepted Answer

A)   Service Revenue
B)   Prepaid Rent
C)   Supplies Expense
D)   None are correctE) C) and D)
F) A) and B)

Question 9

Accumulated Depreciation appears on the

Accepted Answer

A)   balance sheet in the current assets section
B)   balance sheet in the property, plant and equipment section
C)   balance sheet in the long-term liabilities section
D)   income statement as an operating expenseE) A) and D)
F) A) and C)

Question 10

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts on December 31st during the closing process would be:

Accepted Answer

A)   Dec. 31 Fees Earned 750 Rent Revenue 175Income Summary 925
B)   Dec. 31 Income Summary 925 Fees Earned 750Rent Revenue 175
C)   Dec. 31 Revenues 925 Income Summary 925
D)   Dec. 31 Income Summary 925 Revenues 925E) B) and C)
F) None of the above

Question 11

Balance sheet accounts

Accepted Answer

A)   represent amounts accumulated during a specific period of time
B)   are called real accounts
C)   have zero balances after the closing entries have been posted
D)   are not affected by adjustmentsE) A) and B)
F) All of the above

Question 12

Prepare an income statement and a statement of owner's equity for the month ended September 30, 2010 from the T-accounts below of Carson Company.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB2085_00...

Question 13

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

After posting the second closing entry to the income summary account, the balance will be equal to

Accepted Answer

A)   zero.
B)   owner's equity.
C)   revenues for the period
D)   the net income or (loss)  for the period.E) A) and B)
F) A) and C)

Question 15

Explain how net income or loss is determined by using the work sheet.

Accepted Answer

The difference between the debits and cr...

Question 16

The unadjusted, adjusted, and final trial balances are prepared during the accounting cycle of a period.

Accepted Answer

A) True 
 B)False

Question 17

Describe a classified balance sheet.

Accepted Answer

A classified balance sheet subsections a...

Question 18

What is the last account that should be listed in the Post Closing Trial Balance?

Accepted Answer

A)   Income Summary
B)   Capital account
C)   Cash
D)   Fees EarnedE) C) and D)
F) None of the above

Question 19

When preparing the statement of owner's equity, the beginning capital balance can always be found

Accepted Answer

A)   in the Income Statement columns of the work sheet
B)   in the statement of cash flows
C)   in the general ledger
D)   in the Balance Sheet columns of the work sheetE) B) and D)
F) All of the above

Question 20

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

When preparing the statement of owner's equity, the beginning capital balance can always be found

Correct AnswerverifiedShow Answer

On which financial statement will Income Summary be shown?

Correct AnswerverifiedShow Answer

Balance sheet accounts

Correct AnswerverifiedShow Answer

After posting the second closing entry to the income summary account, the balance will be equal to

Correct AnswerverifiedShow Answer

Which of the accounts below would not appear in the balance sheet columns of the worksheet?

Correct AnswerverifiedShow Answer

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

Correct AnswerverifiedShow Answer

Prepare an income statement and a statement of owner's equity for the month ended September 30, 2010 from the T-accounts below of Carson Company.

Correct Answerverified_TB2085_00...View AnswerShow Answer

Accumulated Depreciation appears on the

Correct AnswerverifiedShow Answer

The unadjusted, adjusted, and final trial balances are prepared during the accounting cycle of a period.

Correct AnswerverifiedShow Answer

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Correct AnswerverifiedShow Answer

Explain how net income or loss is determined by using the work sheet.

Correct AnswerverifiedThe difference between the debits and cr...View AnswerShow Answer

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Correct AnswerverifiedShow Answer

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts on December 31st during the closing process would be:

Correct AnswerverifiedShow Answer

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.

Correct AnswerverifiedShow Answer

What is the last account that should be listed in the Post Closing Trial Balance?

Correct AnswerverifiedShow Answer

Which of the accounts below would appear in the Balance Sheet columns of the work sheet?

Correct AnswerverifiedShow Answer

After net income is entered on the work sheet, the Balance Sheet debit and credit columns must

Correct AnswerverifiedShow Answer

Accrued taxes payable are generally reported on the balance sheet as a current liability.

Correct AnswerverifiedShow Answer

Describe a classified balance sheet.

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

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Correct AnswerverifiedShow Answer

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_TB2085_00...
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The difference between the debits and cr...
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A classified balance sheet subsections a...
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Correct Answer
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