Question 1

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Accepted Answer

A)  Accounts Payable.
B)  Prepaid Insurance.
C)  Unearned Revenue.
D)  Land.
E)  S. Stills, Withdrawal.F) C) and D)
G) A) and B)

Question 2

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 3

Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company:   Account Title  Dr.  Cr.  Cash $23,000 Accounts receivable 16,000 Prepaid insurance 6,600 Equipment 100,000 Accumulated Depreciation-Equipment $50,000 Land 95,000 Accounts payable 17,000 Interest payable 2,400 Unearned revenue 5,000 Long-term notes payable 30,000 Z. Taron, Capital 136,200 Totals $240,600$240,600\begin{array}{|l|r|l|}\hline 	ext { Account Title } & 	ext { Dr. } & 	ext { Cr. } \\hline 	ext { Cash } & \$ 23,000 & \\hline 	ext { Accounts receivable } & 16,000 & \\hline 	ext { Prepaid insurance } & 6,600 & \\hline 	ext { Equipment } & 100,000 & \\hline 	ext { Accumulated Depreciation-Equipment } & & \$ 50,000 \\hline 	ext { Land } & 95,000 &\\hline 	ext { Accounts payable } & & 17,000 \\hline 	ext { Interest payable } & & 2,400 \\hline 	ext { Unearned revenue } & & 5,000 \\hline 	ext { Long-term notes payable } & & 30,000 \\hline 	ext { Z. Taron, Capital } & & 136,200 \\hline 	ext { Totals } & \$ 240,600 & \$ 240,600 \\hline\end{array} Account Title  Cash  Accounts receivable  Prepaid insurance  Equipment  Accumulated Depreciation-Equipment  Land  Accounts payable  Interest payable  Unearned revenue  Long-term notes payable  Z. Taron, Capital  Totals ​ Dr. $23,00016,0006,600100,00095,000$240,600​ Cr. $50,00017,0002,4005,00030,000136,200$240,600​​

Accepted Answer

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

Question 4

Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

Accepted Answer

A) True 
 B)False

Question 5

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:

Accepted Answer

A)  $200 of prepaid insurance.
B)  $200 difference between the debit and credit columns of the Unadjusted Trial Balance.
C)  An error in the financial statements.
D)  $200 decrease in net income.
E)  $200 increase in net income.F) A) and C)
G) B) and E)

Question 6

Match between columns
                        Premises: A ratio that is used to help evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities.
Long-term resources that benefit business operations, usually lack physical form, and have uncertain benefits.
The owner's claim on the assets of a company.
Obligations due to be paid or settled within one year or the operating cycle of a business, whichever is longer.
A balance sheet that broadly groups items into assets, liabilities and equity.
Cash and other resources that are expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer.
A balance sheet that organizes the assets and liabilities into important subgroups that provide more information to decision makers.
Tangible assets that are long-lived and used to produce or sell products or services.
Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Assets that are held for more than the longer of one year or the operating cycle of the company and are not used in operations.

Accepted Answer

The Answer of Closing entries and Intangible assets and Long-term is...

Question 7

The Income Summary account is used to:

Accepted Answer

A)  Determine the appropriate withdrawal amount.
B)  Adjust and update asset and liability accounts.
C)  Replace the capital account in some businesses.
D)  Replace the income statement under certain circumstances.
E)  Close the revenue and expense accounts.F) D) and E)
G) A) and B)

Question 8

List and explain the steps in preparing a 10-column worksheet.

Accepted Answer

1. Enter the unadjusted trial balance. L...

Question 9

The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the F. Mercury, Capital account after all closing entries are made?

Accepted Answer

A)  $28,000.
B)  $35,400.
C)  $52,400.
D)  $37,000.
E)  $43,400.F) All of the above
G) B) and E)

Question 10

Closing the temporary accounts at the end of each accounting period does all of the following except:

Accepted Answer

A)  Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet.
B)  Prepares the withdrawals account for use in the next period.
C)  Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.
D)  Brings the revenue and expense accounts to zero balances.
E)  Has no effect on the owner's capital account.F) A) and C)
G) B) and E)

Question 11

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

Accepted Answer

A) True 
 B)False

Question 12

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Accepted Answer

A) True 
 B)False

Question 13

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the usual final step in the accounting cycle?

Accepted Answer

A)  Preparing a post-closing trial balance.
B)  Preparing the financial statements.
C)  Journalizing transactions.
D)  Preparing a work sheet.
E)  Preparing an adjusted trial balance.F) C) and D)
G) C) and E)

Question 15

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 16

Describe a work sheet and explain why it is useful.

Accepted Answer

A work sheet is a useful tool that prepa...

Exam 4: Completing the Accounting Cycle

Correct Answer
verified

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

Correct Answer
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Closing the temporary accounts at the end of each accounting period does all of the following except:

Correct Answer
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Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

Correct Answer
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The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Correct Answer
verified

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:

Correct Answer
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The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the F. Mercury, Capital account after all closing entries are made?

Correct Answer
verified

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Correct Answer
verified

List and explain the steps in preparing a 10-column worksheet.

Correct Answer
verified
1. Enter the unadjusted trial balance. L...
View Answer

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

Correct Answer
verified

Match with the appropriate definition with the following terms.

Which of the following is the usual final step in the accounting cycle?

Correct Answer
verified

The Income Summary account is used to:

Correct Answer
verified

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Correct Answer
verified

Describe a work sheet and explain why it is useful.

Correct Answer
verified
A work sheet is a useful tool that prepa...
View Answer

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Correct AnswerverifiedShow Answer

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

Correct AnswerverifiedShow Answer

Closing the temporary accounts at the end of each accounting period does all of the following except:

Correct AnswerverifiedShow Answer

Accounts that appear in the balance sheet are often called temporary (nominal)accounts.

Correct AnswerverifiedShow Answer

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Correct AnswerverifiedShow Answer

A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:

Correct AnswerverifiedShow Answer

The F. Mercury, Capital account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the F. Mercury, Capital account after all closing entries are made?

Correct AnswerverifiedShow Answer

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Correct AnswerverifiedShow Answer

List and explain the steps in preparing a 10-column worksheet.

Correct Answerverified1. Enter the unadjusted trial balance. L...View AnswerShow Answer

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

Correct AnswerverifiedShow Answer

Match with the appropriate definition with the following terms.

Which of the following is the usual final step in the accounting cycle?

Correct AnswerverifiedShow Answer

The Income Summary account is used to:

Correct AnswerverifiedShow Answer

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Correct AnswerverifiedShow Answer

Describe a work sheet and explain why it is useful.

Correct AnswerverifiedA work sheet is a useful tool that prepa...View AnswerShow Answer

Revenue and expense accounts are permanent (real)accounts and should not be closed at the end of the accounting period.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1. Enter the unadjusted trial balance. L...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A work sheet is a useful tool that prepa...
View Answer

Correct Answer
verified