Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for December 31, 2010:
  Prepare an income statement.

Accepted Answer

The answer of The following revenue and expense account balances...

Question 3

Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $7,200 and recorded it as a prepaid expense. Which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Amir's first month of operations on March 31st?

Accepted Answer

A)   $7,200
B)   $720
C)   $600
D)   $6,600E) A) and D)
F) All of the above

Question 4

The natural business year

Accepted Answer

A)   is a fiscal year that ends when business activities are at its lowest point.
B)   is a calendar year that ends when business activities are at its lowest point.
C)   is a fiscal year that ends when business activities are at its highest point.
D)   is a calendar year that ends when business activities are at its highest point.E) C) and D)
F) A) and C)

Question 5

Indicate whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

Accepted Answer

The answer of Indicate whether each of the following would...

Question 6

When a work sheet is complete, the adjustment columns should have

Accepted Answer

A)   total credits greater than total debits if a net income was earned
B)   total debits greater than total credits if a net loss was incurred
C)   total debits greater than total credits if a net income was earned
D)   total debits equal total creditsE) None of the above
F) B) and D)

Question 7

What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?

Accepted Answer

A)   The Adjusted Trial Balance will show the net income (loss)  as an additional account.
B)   Unlike the Adjusted Trial Balance, the Unadjusted Trial Balance will continue with the end-of-period processing even if it is not in balance.
C)   The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts.
D)   The Adjusted Trial Balance will be used to record the adjustments for the period.E) A) and C)
F) B) and C)

Question 8

The income statement columns in the worksheet show that debits are equal to $55,800 and credits are $67,520. What does this information mean to the accountant?

Accepted Answer

A)   Net income of $11,720
B)   Net loss of $11,720
C)   The accounts are out of balance, indicating an error has been made.
D)   The accounts have not been updated.E) A) and B)
F) A) and D) A

Question 9

Round-tripping is when

Accepted Answer

A)   a selling company sells to a customer company with huge discounts.
B)   a selling company pretends to sell to a fictitious company with the intent of inflating revenues
C)   a selling company lends money to a customer company to increase assets.
D)   a selling company lends money to a customer company to be used to purchase goods from the selling company.E) A) and C)
F) None of the above

Question 10

Indicate whether each of the following would be reported in the financial statements as a(n) (a) current asset, (b) current liability, (c) revenue, or (d) expense:

Accepted Answer

The answer of Indicate whether each of the following would...

Question 11

Prepare an income statement and a statement of owner's equity, for the month ended August 31, 2014, from the following T-Accounts of Marley Company.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB2013_00...

Question 12

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Accepted Answer

A)   increase a liability account
B)   decrease an asset account
C)   decrease a revenue account
D)   decrease a liability accountE) A) and D)
F) B) and D)

Question 13

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Accepted Answer

A) True 
 B)False  False

Question 14

The income statement should be prepared

Accepted Answer

A)   before the statement of owner's equity and balance sheet
B)   after the statement of owner's equity and before the balance sheet
C)   after the statement of owner's equity and balance sheet
D)   after the balance sheet and before the statement of owner's equityE) C) and D)
F) All of the above

Question 15

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

Accepted Answer

A) True 
 B)False

Question 16

The balances for the accounts listed below appear in the Adjusted Trial balance columns of the end-of-period spreadsheet (work sheet). Indicate whether each balance should be extended to an Income Statement column or (b) a Balance Sheet column.
1. Dobson, Capital
2. Dobson, Drawing
3. Depreciation Expense
4. Accumulated Depreciation
5. Fees earned
6. Unearned Fees
7. Supplies
8. Supplies Expense

Accepted Answer

1. Balance sheet column
2. Balance sheet...

Question 17

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2010.
  Prepare the entry required to close the Drawing account at the end of the period.

Accepted Answer

The answer of Bob Evans owns a business, Beachside Realty,...

Question 18

Describe a classified balance sheet.

Accepted Answer

A classified balance sheet subsections a...

Question 19

On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.

Accepted Answer

The answer of On the basis of the following data...

Question 20

Which of the accounts below would be closed by posting a debit to the account?

Accepted Answer

A)   Unearned Revenue
B)   Fees Earned
C)   Josh Morton, Drawing
D)   Miscellaneous ExpenseE) A) and D)
F) B) and C)

Exam 4: Completing the Accounting Cycle

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

Correct Answer
verified

The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for December 31, 2010: Prepare an income statement.

Correct Answer
verified

Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $7,200 and recorded it as a prepaid expense. Which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Amir's first month of operations on March 31st?

Correct Answer
verified

The natural business year

Correct Answer
verified

Indicate whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

Correct Answer
verified

When a work sheet is complete, the adjustment columns should have

Correct Answer
verified

What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?

Correct Answer
verified

The income statement columns in the worksheet show that debits are equal to $55,800 and credits are $67,520. What does this information mean to the accountant?

Correct Answer
verified
A

Round-tripping is when

Correct Answer
verified

Indicate whether each of the following would be reported in the financial statements as a(n) (a) current asset, (b) current liability, (c) revenue, or (d) expense:

Correct Answer
verified

Prepare an income statement and a statement of owner's equity, for the month ended August 31, 2014, from the following T-Accounts of Marley Company.

Correct Answer
verified
_TB2013_00...
View Answer

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Correct Answer
verified

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Correct Answer
verified
False

The income statement should be prepared

Correct Answer
verified

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

Correct Answer
verified

Correct Answer
verified
1. Balance sheet column
2. Balance sheet...
View Answer

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2010. Prepare the entry required to close the Drawing account at the end of the period.

Correct Answer
verified

Describe a classified balance sheet.

Correct Answer
verified
A classified balance sheet subsections a...
View Answer

On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.

Correct Answer
verified
11ea9439_6fc5_eb79_8ff9_83faf9253d1c_TB2013_00_TB2013_00

Which of the accounts below would be closed by posting a debit to the account?

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

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

Correct AnswerverifiedShow Answer

The following revenue and expense account balances were taken from the Income Statement columns of the work sheet for Fraser Services Co. for December 31, 2010: Prepare an income statement.

Correct AnswerverifiedShow Answer

Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $7,200 and recorded it as a prepaid expense. Which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Amir's first month of operations on March 31st?

Correct AnswerverifiedShow Answer

The natural business year

Correct AnswerverifiedShow Answer

Indicate whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

Correct AnswerverifiedShow Answer

When a work sheet is complete, the adjustment columns should have

Correct AnswerverifiedShow Answer

What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?

Correct AnswerverifiedShow Answer

The income statement columns in the worksheet show that debits are equal to $55,800 and credits are $67,520. What does this information mean to the accountant?

Correct AnswerverifiedA

Round-tripping is when

Correct AnswerverifiedShow Answer

Indicate whether each of the following would be reported in the financial statements as a(n) (a) current asset, (b) current liability, (c) revenue, or (d) expense:

Correct AnswerverifiedShow Answer

Prepare an income statement and a statement of owner's equity, for the month ended August 31, 2014, from the following T-Accounts of Marley Company.

Correct Answerverified_TB2013_00...View AnswerShow Answer

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

Correct AnswerverifiedShow Answer

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Correct AnswerverifiedFalse

The income statement should be prepared

Correct AnswerverifiedShow Answer

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

Correct AnswerverifiedShow Answer

Correct Answerverified1. Balance sheet column2. Balance sheet...View AnswerShow Answer

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2010. Prepare the entry required to close the Drawing account at the end of the period.

Correct AnswerverifiedShow Answer

Describe a classified balance sheet.

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

On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.

Correct Answerverified11ea9439_6fc5_eb79_8ff9_83faf9253d1c_TB2013_00_TB2013_00

Which of the accounts below would be closed by posting a debit to the account?

Correct AnswerverifiedShow Answer

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False

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1. Balance sheet column
2. Balance sheet...
View Answer

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A classified balance sheet subsections a...
View Answer

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11ea9439_6fc5_eb79_8ff9_83faf9253d1c_TB2013_00_TB2013_00

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