Question 1

Use the work sheet for Finley Company to answer the questions that follow.

The entry to close expenses would be

Accepted Answer

A)  Wages Expense 63,000 Rent Expense 27,000Depreciation Expense 15,000Income Summary 105,000
B)  Expenses 105,000 Income Summary 105,000
C)  Wages Expense 63,000 Rent Expense 27,000Depreciation Expense 15,000Dividends 105,000
D)  Income Summary 105,000 Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000E) B) and C)
F) A) and C)

Question 2

Marcus Enterprises began in 2011 when Damien Marcus invested $8,000 in exchange for capital stock.The following is the work sheet for the company at the end of the first year in business.
Marcus Enterprises
Work Sheet
For the Year Ended December 31,2011
  
Prepare an income statement,retained earnings statement,and classified balance sheet for Marcus Enterprises for the year ended December 31,2011.

Accepted Answer

Marcus Enterprises
Income Statement
For ...

Question 3

A post-closing trial balance contains only asset and liability accounts.

Accepted Answer

A) True 
 B)False

Question 4

The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet.

Accepted Answer

A) True 
 B)False

Question 5

Closing entries are dated in the journal as of

Accepted Answer

A)  the date they are actually journalized,although they are generally prepared after the end of the accounting period
B)  the last day of the accounting period,although they are actually journalized after the end of the accounting period
C)  the first day of the accounting period,although they are actually journalized after the end of the accounting period
D)  the first day of the subsequent accounting periodE) A) and D)
F) B) and C)

Question 6

The balance sheet should be prepared

Accepted Answer

A)  before the income statement and the retained earnings statement
B)  before the income statement and after the retained earnings statement
C)  after the income statement and the retained earnings statement
D)  after the income statement and before the retained earnings statementE) B) and D)
F) None of the above

Question 7

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 8

Current assets are also called as plant assets.

Accepted Answer

A) True 
 B)False

Question 9

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Accepted Answer

A) True 
 B)False

Question 10

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow.

Determine the net income (loss) for the period.

Accepted Answer

A)  Net Income $9,250
B)  Net Loss $790
C)  Net Loss $5,670
D)  Net Income $3,580E) A) and B)
F) B) and C)

Question 11

The income statement should be prepared

Accepted Answer

A)  before the retained earnings statement and balance sheet
B)  after the retained earnings statement and before the balance sheet
C)  after the retained earnings statement and balance sheet
D)  after the balance sheet and before the retained earnings statementE) B) and C)
F) A) and B)

Question 12

Office Equipment is an example of a current asset account.

Accepted Answer

A) True 
 B)False

Question 13

Selected ledger accounts appear below for Fulton Surveying Services for 2014.

Prepare a retained earnings statement.

Accepted Answer

The answer of Selected ledger accounts appear below for Fulton...

Question 14

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

Question 15

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

Accepted Answer

A)  neither net income or loss can be calculated because it is found on the income statement.
B)  the company has a net loss of $3,415 for the period.
C)  the company has a net income of $3,415 for the period.
D)  the amounts are out of balance and need to be corrected.E) A) and D)
F) B) and C)

Question 16

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) B) and D)
F) All of the above

Question 17

The post-closing trial balance differs from the adjusted trial balance in that it

Accepted Answer

A)  does not take into account closing entries
B)  does not take into account adjusting entries
C)  does not include balance sheet accounts
D)  does not include income statement accountsE) A) and C)
F) None of the above

Question 18

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) B) and D)
F) C) and D)

Question 19

When preparing the retained earnings statement,the beginning retained earnings 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 Adjustments columns of the work sheetE) A) and D)
F) None of the above

Question 20

Closing entries are entered directly on to the work sheet.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

When preparing the retained earnings statement,the beginning retained earnings balance can always be found

Correct Answer
verified

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

Correct Answer
verified

The post-closing trial balance differs from the adjusted trial balance in that it

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

Office Equipment is an example of a current asset account.

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

Correct Answer
verified
Marcus Enterprises
Income Statement
For ...
View Answer

The income statement should be prepared

Correct Answer
verified

Selected ledger accounts appear below for Fulton Surveying Services for 2014. Prepare a retained earnings statement.

Correct Answer
verified

Use the work sheet for Finley Company to answer the questions that follow. The entry to close expenses would be

Correct Answer
verified

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

Correct Answer
verified

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Correct Answer
verified

The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet.

Correct Answer
verified

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Correct Answer
verified

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. Determine the net income (loss) for the period.

Correct Answer
verified

Closing entries are dated in the journal as of

Correct Answer
verified

A post-closing trial balance contains only asset and liability accounts.

Correct Answer
verified

Current assets are also called as plant assets.

Correct Answer
verified

Closing entries are entered directly on to the work sheet.

Correct Answer
verified

The balance sheet should be prepared

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

When preparing the retained earnings statement,the beginning retained earnings balance can always be found

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

Correct AnswerverifiedShow Answer

The post-closing trial balance differs from the adjusted trial balance in that it

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

Office Equipment is an example of a current asset account.

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 AnswerverifiedShow Answer

Correct AnswerverifiedMarcus EnterprisesIncome StatementFor ...View AnswerShow Answer

The income statement should be prepared

Correct AnswerverifiedShow Answer

Selected ledger accounts appear below for Fulton Surveying Services for 2014. Prepare a retained earnings statement.

Correct AnswerverifiedShow Answer

Use the work sheet for Finley Company to answer the questions that follow. The entry to close expenses would be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

Correct AnswerverifiedShow Answer

The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet.

Correct AnswerverifiedShow Answer

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Correct AnswerverifiedShow Answer

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. Determine the net income (loss) for the period.

Correct AnswerverifiedShow Answer

Closing entries are dated in the journal as of

Correct AnswerverifiedShow Answer

A post-closing trial balance contains only asset and liability accounts.

Correct AnswerverifiedShow Answer

Current assets are also called as plant assets.

Correct AnswerverifiedShow Answer

Closing entries are entered directly on to the work sheet.

Correct AnswerverifiedShow Answer

The balance sheet should be prepared

Correct AnswerverifiedShow Answer

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Marcus Enterprises
Income Statement
For ...
View Answer

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