Question 1

Since the adjustments are entered on the work sheet, it is  not necessary to record them in the journal or post them to the ledger.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)   $23,030
B)   $9,330
C)   $21,930
D)   $8,630E) A) and D)
F) None of the above

Question 3

Current liabilities are those liabilities that

Accepted Answer

A)   will be paid in less than one year
B)   are due to be paid in 5 to 10 years
C)   are due to be paid in more than one year
D)   are owed to the stockholders and will never be paidE) B) and C)
F) A) and C)

Question 4

The retained earnings statement begins with the beginning balance followed by

Accepted Answer

A)   net income (loss)  and dividends
B)   net income (loss)  and issuances of capital stock
C)   issuances of capital stock and dividends
D)   issuances of capital stock, net income (loss) , and dividendsE) None of the above
F) B) and C)

Question 5

Accrued expenses are ordinarily listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 6

The last step of the accounting cycle is to prepare a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 7

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

Accepted Answer

The answer of The following adjusted trial balance is the...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Hakik Enterprises offers rug cleaning services to business clients. Below is the work sheet containing the trial balance for the month ended July 31, 2012.
 
 Enter the adjustments in the work sheet based on the data provided below. Then enter the adjusted account balances in the Adjusted Trial Balance columns.
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.
b) Accrued wages, $2.
c) Unused supplies on hand, $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

Accepted Answer

The answer of Hakik Enterprises offers rug cleaning services to...

Question 10

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 C)

Question 11

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs:
  Journalize the entries to close the appropriate accounts.

Accepted Answer

The answer of After all adjustments have been made, but...

Question 12

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

Accepted Answer

A)   $1,900
B)   $6,200
C)   $4,300
D)   $20,240E) A) and B)
F) A) and C)

Question 13

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:  Net income for the period is

Accepted Answer

A)   $3,200
B)   $12,100
C)   $17,400
D)   $8,900E) B) and C)
F) C) and D)

Question 14

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Accepted Answer

A)   Post-closing, unadjusted, adjusted
B)   Unadjusted, post-closing, adjusted
C)   Unadjusted, adjusted, post-closing
D)   Post-closing, adjusted, unadjustedE) B) and D)
F) All of the above

Question 15

The unequal totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

Accepted Answer

A)   indicates the amount of net income or loss
B)   indicates there is an error on the work sheet
C)   is not unusual when preparing the work sheet
D)   is the net difference between revenue, expenses, and dividendsE) A) and B)
F) C) and D)

Question 16

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

Accepted Answer

A) True 
 B)False

Question 17

All income statement accounts will be closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not an essential part of the accounting records?

Accepted Answer

A)   journal
B)   ledger
C)   chart of accounts
D)   work sheetE) B) and D)
F) C) and D)

Question 19

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

Question 20

A work sheet heading is dated for a period of time.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

All income statement accounts will be closed at the end of the period.

Correct Answer
verified

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Correct Answer
verified

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

Correct Answer
verified

Which of the following is not an essential part of the accounting records?

Correct Answer
verified

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Net income for the period is

Correct Answer
verified

The retained earnings statement begins with the beginning balance followed by

Correct Answer
verified

Current liabilities are those liabilities that

Correct Answer
verified

After net income is entered on the work sheet, the Balance Sheet Debit and Credit columns must

Correct Answer
verified

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

Correct Answer
verified

A work sheet heading is dated for a period of time.

Correct Answer
verified

Since the adjustments are entered on the work sheet, it is not necessary to record them in the journal or post them to the ledger.

Correct Answer
verified

Correct Answer
verified

Accrued expenses are ordinarily 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 total liabilities for the period.

Correct Answer
verified

The unequal totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

Correct Answer
verified

The last step of the accounting cycle is to prepare a post-closing trial balance.

Correct Answer
verified

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: Journalize the entries to close the appropriate accounts.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

All income statement accounts will be closed at the end of the period.

Correct AnswerverifiedShow Answer

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Correct AnswerverifiedShow Answer

The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to prepare the closing entries for Ladonna Douglas Company.

Correct AnswerverifiedShow Answer

Which of the following is not an essential part of the accounting records?

Correct AnswerverifiedShow Answer

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Net income for the period is

Correct AnswerverifiedShow Answer

The retained earnings statement begins with the beginning balance followed by

Correct AnswerverifiedShow Answer

Current liabilities are those liabilities that

Correct AnswerverifiedShow Answer

After net income is entered on the work sheet, the Balance Sheet Debit and Credit columns must

Correct AnswerverifiedShow Answer

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

Correct AnswerverifiedShow Answer

A work sheet heading is dated for a period of time.

Correct AnswerverifiedShow Answer

Since the adjustments are entered on the work sheet, it is not necessary to record them in the journal or post them to the ledger.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accrued expenses are ordinarily 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 total liabilities for the period.

Correct AnswerverifiedShow Answer

The unequal totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

Correct AnswerverifiedShow Answer

The last step of the accounting cycle is to prepare a post-closing trial balance.

Correct AnswerverifiedShow Answer

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: Journalize the entries to close the appropriate accounts.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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