Question 1

The use of reversing entries is

Accepted Answer

A)  required.
B)  required whenever adjusting entries are omitted.
C)  optional.
D)  optional unless computerized accounting systems are used.E) B) and C)
F) A) and D)

Question 2

The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each balance should be extended to (a) an Income Statement column or (b) a Balance Sheet column.​
1. Retained Earnings
2. Common Stock
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 3

The following information is available from the records of LoopTech, Inc. On January 1, Common Stock had a balance of $50,000, and Retained Earnings had a balance of $342,500. During the year, no additional common stock was issued, and $25,000 of dividends were paid. For the year ended December 31, LoopTech reported a net loss of $38,700. Prepare a statement of stockholders' equity for the year ended December 31.

Accepted Answer

The answer of The following information is available from the...

Question 4

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Accepted Answer

A) True 
 B)False

Question 5

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

Accepted Answer

A)  net income of $21,720
B)  net loss of $21,720
C)  the accounts are out of balance, indicating an error has been made
D)  the accounts have not been updatedE) B) and C)
F) None of the above

Question 6

Which of the following statements is true?

Accepted Answer

A)  The balance in the revenue accounts after closing agrees with the revenue shown on the income statement.
B)  The balance in the dividends account after closing agrees with the amount of dividends reported on the statement of stockholders' equity.
C)  The balance of Retained Earnings after closing agrees with the amount reported on the statement of stockholders' equity and the balance sheet.
D)  The trial balance taken after closing can be used to prepare the statement of stockholders' equity and the balance sheet.E) B) and D)
F) B) and C)

Question 7

On the basis of the following data taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for the year ended March 31 for Banes Domino's Corporation, journalize the two closing entries.

Accepted Answer

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

Question 8

A reversing entry recorded on the first day of the current accounting period is exactly the same as the related adjusting entry from the last day of the prior accounting period.

Accepted Answer

A) True 
 B)False

Question 9

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Accepted Answer

A) True 
 B)False

Question 10

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Accepted Answer

A)  verify that the debits and credits are in balance
B)  verify that the net income correctly flows into the statement of stockholders' equity from the income statement
C)  verify that the net income (loss)  is correct for the period
D)  verify the correct flow of accounts into the financial statementsE) A) and B)
F) C) and D)

Question 11

Net income appears on the end-of-period spreadsheet in the

Accepted Answer

A)  debit column of the Balance Sheet columns
B)  debit column of the Adjustments columns
C)  debit column of the Income Statement columns
D)  credit column of the Income Statement columnsE) C) and D)
F) B) and C)

Question 12

Match each journal entry that follows with one of the types of journal entries (a-c) below.
-Accounts Receivable 325
Fees Earned 325
(Customer billed for services performed.)
A)Journal entries
B)Adjusting journal entries
C)Closing journal entries

Accepted Answer

The answer of Match each journal entry that follows with...

Question 13

A post-closing trial balance should be prepared before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 14

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Accepted Answer

A)  is the amount of net income or loss
B)  indicates there is an error on the end-of-period spreadsheet
C)  is the amount of retained earnings
D)  is the difference between revenue and expensesE) C) and D)
F) B) and D)

Question 15

The classified balance sheet will show which asset subsections?

Accepted Answer

A)  current assets and other equity
B)  current assets and property, plant, and equipment
C)  current liabilities and short-term assets
D)  other revenues and property, plant and equipmentE) A) and D)
F) B) and C)

Question 16

The balance sheet should be prepared

Accepted Answer

A)  before the income statement and the statement of stockholders' equity
B)  before the income statement and after the statement of stockholders' equity
C)  after the income statement and the statement of stockholders' equity
D)  after the income statement and before the statement of stockholders' equityE) B) and C)
F) None of the above

Question 17

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing) ?

Accepted Answer

A)  analyze and record transactions, post transactions 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, and prepare a post-closing trial balance
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) A) and B)
F) A) and C)

Question 18

The totals of the Adjusted Trial Balance columns on an end-of-period spreadsheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Accepted Answer

A) True 
 B)False

Question 19

Match each journal entry that follows with one of the types of journal entries (a-c) below.
-Retained Earnings 650
Dividends 650
A)Journal entries
B)Adjusting journal entries
C)Closing journal entries

Accepted Answer

The answer of Match each journal entry that follows with...

Question 20

Which of the following accounts will be credited to close it?

Accepted Answer

A)  Rent Revenues
B)  Fees Earned
C)  Accumulated Depreciation
D)  Depreciation ExpenseE) B) and C)
F) A) and B)

Exam 4: The Accounting Cycle

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

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Correct Answer
verified

On the basis of the following data taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for the year ended March 31 for Banes Domino's Corporation, journalize the two closing entries.

Correct Answer
verified

Which of the following accounts will be credited to close it?

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing) ?

Correct Answer
verified

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Correct Answer
verified

Correct Answer
verified

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

Correct Answer
verified

The use of reversing entries is

Correct Answer
verified

The balance sheet should be prepared

Correct Answer
verified

A post-closing trial balance should be prepared before the financial statements are prepared.

Correct Answer
verified

The totals of the Adjusted Trial Balance columns on an end-of-period spreadsheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Correct Answer
verified

The classified balance sheet will show which asset subsections?

Correct Answer
verified

A reversing entry recorded on the first day of the current accounting period is exactly the same as the related adjusting entry from the last day of the prior accounting period.

Correct Answer
verified

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.) A)Journal entries B)Adjusting journal entries C)Closing journal entries

Correct Answer
verified

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Correct Answer
verified

Net income appears on the end-of-period spreadsheet in the

Correct Answer
verified

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Retained Earnings 650 Dividends 650 A)Journal entries B)Adjusting journal entries C)Closing journal entries

Correct Answer
verified

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Correct Answer
verified

Exam 4: The Accounting Cycle

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

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Correct AnswerverifiedShow Answer

On the basis of the following data taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for the year ended March 31 for Banes Domino's Corporation, journalize the two closing entries.

Correct AnswerverifiedShow Answer

Which of the following accounts will be credited to close it?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing) ?

Correct AnswerverifiedShow Answer

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

Correct AnswerverifiedShow Answer

The use of reversing entries is

Correct AnswerverifiedShow Answer

The balance sheet should be prepared

Correct AnswerverifiedShow Answer

A post-closing trial balance should be prepared before the financial statements are prepared.

Correct AnswerverifiedShow Answer

The totals of the Adjusted Trial Balance columns on an end-of-period spreadsheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Correct AnswerverifiedShow Answer

The classified balance sheet will show which asset subsections?

Correct AnswerverifiedShow Answer

A reversing entry recorded on the first day of the current accounting period is exactly the same as the related adjusting entry from the last day of the prior accounting period.

Correct AnswerverifiedShow Answer

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Accounts Receivable 325 Fees Earned 325 (Customer billed for services performed.) A)Journal entries B)Adjusting journal entries C)Closing journal entries

Correct AnswerverifiedShow Answer

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

Correct AnswerverifiedShow Answer

Net income appears on the end-of-period spreadsheet in the

Correct AnswerverifiedShow Answer

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Retained Earnings 650 Dividends 650 A)Journal entries B)Adjusting journal entries C)Closing journal entries

Correct AnswerverifiedShow Answer

Once the adjusting entries are posted, the adjusted trial balance is prepared to

Correct AnswerverifiedShow Answer

Correct Answer
verified
1. Balance Sheet column
2. Balance Sheet...
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