Question 1

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 2

The following information is available for the Travis Travel Agency.After these closing entries what will be the balance in the Jay Travis,Capital account?
Total revenues………………. $125,000
Total expenses………………. 60,000
Jay Travis,Capital…………… 80,000
Jay Travis,Withdrawals……... 15,000

Accepted Answer

A)  $ 65,000.
B)  $ 80,000.
C)  $130,000.
D)  $145,000.
E)  $280,000.F) B) and C)
G) A) and E)

Question 3

Current liabilities include accounts receivable,unearned revenues,and salaries payable.

Accepted Answer

A) True 
 B)False

Question 4

Excalibur frequently has accrued expenses at the end of its fiscal year that should be recorded for proper financial statement presentation.Excalibur pays on a weekly basis and has $50,000 of accrued salaries incurred but not paid for June 30,its fiscal year-end.This consists of one day's accrued salaries for the week.Excalibur will pay its employees $250,000 on July 4; the one day of accrued salaries and the remaining four days for July salaries.Record the following entries:
(a)Accrual of the salaries on June 30.
(b)Payment of the salaries on July 4,assuming that Excalibur does not prepare reversing entries.
(c)Assuming that Excalibur prepares reversing entries,reverse the adjusting entry made on June 30.
(d)Assuming that Excalibur prepares reversing entries,payment of the salaries on July 4.

Accepted Answer

The answer of Excalibur frequently has accrued expenses at the...

Question 5

Since it is an important financial statement,the work sheet must be prepared according to specified accounting procedures.

Accepted Answer

A) True 
 B)False

Question 6

A columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements,and which is an optional tool in the accounting process is a(n) :

Accepted Answer

A)  Adjusted trial balance.
B)  Work sheet.
C)  Post-closing trial balance.
D)  Unadjusted trial balance.
E)  General ledger.F) B) and D)
G) C) and E)

Question 7

Long-term investments can include land held for future expansion.

Accepted Answer

A) True 
 B)False

Question 8

On a work sheet,the adjusted balances of revenues and expenses are sorted to the Income Statement columns of the work sheet.

Accepted Answer

A) True 
 B)False

Question 9

Revenues,expenses,and withdrawals accounts,which are closed at the end of each accounting period are:

Accepted Answer

A)  Real accounts.
B)  Temporary accounts.
C)  Closing accounts.
D)  Permanent accounts.
E)  Balance sheet accounts.F) C) and E)
G) A) and E)

Question 10

Accumulated Depreciation,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Accepted Answer

A)  Balance Sheet and Statement of Owner's Equity-Credit; Balance Sheet and Statement of Owner's Equity Debit; and Income Statement-Credit.
B)  Balance Sheet and Statement of Owner's Equity-Debit; Balance Sheet and Statement of Owner's Equity-Credit; and Income Statement-Credit.
C)  Income Statement-Debit; Balance Sheet and Statement of Owner's Equity-Debit; and Income Statement-Credit.
D)  Income Statement-Debit; Income Statement-Debit; and Balance Sheet and Statement of Owner's Equity-Credit.
E)  Balance Sheet and Statement of Owner's Equity-Credit; Income Statement-Debit; and Income Statement-Credit.F) B) and D)
G) A) and B)

Question 11

Employees of Artworld Co.have earned but have not been paid $3,500 in salaries for the last week of the current calendar year.
(a)Prepare the necessary adjusting journal entry(ies)for Artworld at December 31 of the current year.
(b)Assuming that Artworld makes reversing entries,prepare the necessary reversing entry.Include the appropriate date for the reversing entry(ies).

Accepted Answer

a. Dec.31 Salaries Expense 3,5...

Question 12

All necessary numbers to prepare the balance sheet can be found in the balance sheet columns of the work sheet including ending owner's capital.

Accepted Answer

A) True 
 B)False

Question 13

All of the following statements regarding the Income Statement columns on the worksheet are true except:

Accepted Answer

A)  The balances in the Income Statement credit column are revenues.
B)  The balances in the Income Statement credit column are unearned revenues.
C)  The balances in the Income Statement debit column are expenses.
D)  The difference between the totals of the Income Statement columns is net income or net loss.
E)  The net income or net loss from the Income Statement columns is entered in the Balance Sheet & Statement of Owner's Equity columns.F) A) and B)
G) B) and E)

Question 14

All of the following regarding current ratio are true except:

Accepted Answer

A)  Current ratio is calculated by dividing current assets by current liabilities.
B)  Current ratio helps to assess a company's ability to pay its debts in the near future.
C)  Current ratio does not affect a creditor's decision on when to allow a company to buy on credit.
D)  Current ratio can affect a creditor's decision about whether to lend money to a company.
E)  Current ratio can reveal problems in a company if it is less than 1.F) A) and C)
G) B) and D)

Question 15

Another name for temporary accounts is:

Accepted Answer

A)  Real accounts.
B)  Contra accounts.
C)  Accrued accounts.
D)  Balance column accounts.
E)  Nominal accounts.F) B) and E)
G) B) and D)

Question 16

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Tricia DeBarre,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

Accepted Answer

A)  $16,780 debit.
B)  $ 7,180 credit.
C)  $16,780 credit.
D)  $18,280 credit.
E)  $23,780 credit.F) A) and B)
G) C) and E)

Question 17

Assets,liabilities,and equity accounts are not closed; these accounts are called:

Accepted Answer

A)  Nominal accounts.
B)  Temporary accounts.
C)  Permanent accounts.
D)  Contra accounts.
E)  Accrued accounts.F) B) and D)
G) B) and C)

Question 18

Explain why temporary accounts are closed each period.

Accepted Answer

Temporary accounts are closed at the end...

Question 19

The items that follow appeared in the Income Statement columns of the work sheet prepared for Armstrong Delivery Service at current year-end.In addition,L.Armstrong,Capital had a credit balance of $117,000 and L.Armstrong,Withdrawals had a debit balance of $30,000 at year end.Prepare closing journal entries for this company.

Accepted Answer

The answer of The items that follow appeared in the...

Question 20

Explain the purpose of reversing entries.

Accepted Answer

Reversing entries are an optional step i...

Exam 4: Completing the Accounting Cycle

Current liabilities include accounts receivable,unearned revenues,and salaries payable.

Correct Answer
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Correct Answer
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Another name for temporary accounts is:

Correct Answer
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All of the following statements regarding the Income Statement columns on the worksheet are true except:

Correct Answer
verified

A columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements,and which is an optional tool in the accounting process is a(n) :

Correct Answer
verified

Correct Answer
verified

All necessary numbers to prepare the balance sheet can be found in the balance sheet columns of the work sheet including ending owner's capital.

Correct Answer
verified

Revenues,expenses,and withdrawals accounts,which are closed at the end of each accounting period are:

Correct Answer
verified

Assets,liabilities,and equity accounts are not closed; these accounts are called:

Correct Answer
verified

All of the following regarding current ratio are true except:

Correct Answer
verified

Explain the purpose of reversing entries.

Correct Answer
verified
Reversing entries are an optional step i...
View Answer

Long-term investments can include land held for future expansion.

Correct Answer
verified

Since it is an important financial statement,the work sheet must be prepared according to specified accounting procedures.

Correct Answer
verified

Correct Answer
verified

Explain why temporary accounts are closed each period.

Correct Answer
verified
Temporary accounts are closed at the end...
View Answer

Correct Answer
verified
a. Dec.31 Salaries Expense 3,5...
View Answer

Accumulated Depreciation,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Correct Answer
verified

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Tricia DeBarre,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

Correct Answer
verified

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

Correct Answer
verified

On a work sheet,the adjusted balances of revenues and expenses are sorted to the Income Statement columns of the work sheet.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Current liabilities include accounts receivable,unearned revenues,and salaries payable.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Another name for temporary accounts is:

Correct AnswerverifiedShow Answer

All of the following statements regarding the Income Statement columns on the worksheet are true except:

Correct AnswerverifiedShow Answer

A columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements,and which is an optional tool in the accounting process is a(n) :

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All necessary numbers to prepare the balance sheet can be found in the balance sheet columns of the work sheet including ending owner's capital.

Correct AnswerverifiedShow Answer

Revenues,expenses,and withdrawals accounts,which are closed at the end of each accounting period are:

Correct AnswerverifiedShow Answer

Assets,liabilities,and equity accounts are not closed; these accounts are called:

Correct AnswerverifiedShow Answer

All of the following regarding current ratio are true except:

Correct AnswerverifiedShow Answer

Explain the purpose of reversing entries.

Correct AnswerverifiedReversing entries are an optional step i...View AnswerShow Answer

Long-term investments can include land held for future expansion.

Correct AnswerverifiedShow Answer

Since it is an important financial statement,the work sheet must be prepared according to specified accounting procedures.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Explain why temporary accounts are closed each period.

Correct AnswerverifiedTemporary accounts are closed at the end...View AnswerShow Answer

Correct Answerverifieda. Dec.31 Salaries Expense 3,5...View AnswerShow Answer

Accumulated Depreciation,Accounts Receivable,and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Correct AnswerverifiedShow Answer

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below.What amount will be posted to Tricia DeBarre,Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

On a work sheet,the adjusted balances of revenues and expenses are sorted to the Income Statement columns of the work sheet.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Reversing entries are an optional step i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Temporary accounts are closed at the end...
View Answer

Correct Answer
verified
a. Dec.31 Salaries Expense 3,5...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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