Question 1

Explain the differences between a nonclassified balance sheet and a classified balance sheet.

Accepted Answer

A classified balance sheet sub...

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Prior to adjustment at August 31, 2011, Salary Expense has a debit balance of $298,500. Salaries owed but not paid as of the same date total $2,700.

Accepted Answer

The answer of Prior to adjustment at August 31, 2011,...

Question 4

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 5

The majority of businesses end their fiscal year on December 31.

Accepted Answer

A) True 
 B)False

Question 6

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

Accepted Answer

A)   increase an expense account
B)   decrease a liability account
C)   increase an asset account
D)   decrease an expense accountE) None of the above
F) All of the above

Question 7

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

Question 8

The balance sheet accounts are referred to as real or permanent accounts.

Accepted Answer

A) True 
 B)False

Question 9

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Accepted Answer

A) True 
 B)False

Question 10

The journal entry to close the Fees Earned, $275, and Rent Revenue, $200, accounts on December 31st during the closing process would be

Accepted Answer

A)   Dec. 31 Fees Earned 275 Rent Revenue 200Income Summary 475
B)   Dec. 31 Income Summary 475 Fees Earned 275Rent Revenue 200
C)   Dec. 31 Revenues 475 Income Summary 475
D)   Dec. 31 Income Summary 475 Revenues 475E) B) and C)
F) A) and D)

Question 11

What is the last account that should be listed in the post-closing trial balance?

Accepted Answer

A)   Income Summary
B)   Retained Earnings
C)   Cash
D)   Fees EarnedE) C) and D)
F) B) and C)

Question 12

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 13

Which of the items below does not appear on the work sheet?

Accepted Answer

A)   adjusting entries
B)   the unadjusted trial balance
C)   closing entries
D)   the dividends accountE) A) and B)
F) B) and D)

Question 14

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Accepted Answer

A) True 
 B)False

Question 15

The proper sequence for the steps in the accounting cycle is a follows

Accepted Answer

A)   analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries
B)   prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger
C)   analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger
D)   prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entriesE) All of the above
F) C) and D)

Question 16

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 equal to assets and liabilitiesE) B) and D)
F) All of the above

Question 17

The retained earnings statement should be prepared

Accepted Answer

A)   before the income statement and after the balance sheet
B)   before the income statement and balance sheet
C)   after the income statement and balance sheet
D)   after the income statement and before the balance sheetE) A) and C)
F) None of the above

Question 18

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 19

Use the work sheet for Finley Company to answer the questions that follow.  The ending balance in Retained Earnings is

Accepted Answer

A)   $28,000
B)   $70,000
C)   $25,000
D)   $73,000E) C) and D)
F) None of the above

Question 20

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The retained earnings statement should be prepared

Correct AnswerverifiedShow Answer

The journal entry to close the Fees Earned, $275, and Rent Revenue, $200, accounts on December 31st during the closing process would be

Correct AnswerverifiedShow Answer

The majority of businesses end their fiscal year on December 31.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

Correct AnswerverifiedShow Answer

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Correct AnswerverifiedShow Answer

The proper sequence for the steps in the accounting cycle is a follows

Correct AnswerverifiedShow Answer

Balance sheet accounts

Correct AnswerverifiedShow Answer

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Correct AnswerverifiedShow Answer

What is the last account that should be listed in the post-closing trial balance?

Correct AnswerverifiedShow Answer

The balance sheet accounts are referred to as real or permanent accounts.

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:

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Use the work sheet for Finley Company to answer the questions that follow. The ending balance in Retained Earnings is

Correct AnswerverifiedShow Answer

Explain the differences between a nonclassified balance sheet and a classified balance sheet.

Correct AnswerverifiedA classified balance sheet sub...View AnswerShow Answer

Prior to adjustment at August 31, 2011, Salary Expense has a debit balance of $298,500. Salaries owed but not paid as of the same date total $2,700.

Correct AnswerverifiedShow Answer

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

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

Which of the items below does not appear on the work sheet?

Correct AnswerverifiedShow Answer

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

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

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A classified balance sheet sub...
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