Question 1

For entity's reporting under International Financial Reporting Standards, "non- current assets" is typically presented on the Balance Sheet

Accepted Answer

A) True 
 B)False

Question 2

Which of the following depicts the proper sequence of steps in the accounting cycle?

Accepted Answer

A)   journalize the transactions, analyze business transactions, prepare a trial balance
B)   prepare a trial balance, prepare financial statements, prepare adjusting entries
C)   prepare a trial balance, prepare adjusting entries, prepare financial statements
D)   prepare a trial balance, post to ledger accounts, post adjusting entriesE) C) and D)
F) B) and C)

Question 3

The current ratio is expressed as

Accepted Answer

A)   current assets divided by current liabilities.
B)   current assets minus current liabilities.
C)   current liabilities divided by non-current liabilities.
D)   current assets minus owner's equity.E) B) and C)
F) A) and C)

Question 4

The last three steps in the accounting cycle include prepare financial statements, journalize and post closing entries, and prepare a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 5

The adjustments on a work sheet can be posted directly to the accounts in the ledger from the work sheet.

Accepted Answer

A) True 
 B)False

Question 6

The work sheet does NOT show

Accepted Answer

A)   profit or loss for the period.
B)   revenue and expense account balances.
C)   the ending balance in the Owner's Capital account.
D)   the trial balance before adjustments.E) All of the above
F) B) and D)

Question 7

Another name for Balance Sheet is the Statement of Financial Position.

Accepted Answer

A) True 
 B)False

Question 8

Keswick Industries has the following current assets and current liabilities on the company's balance sheet: Cash $17,000; Accounts Receivable $8,200; Inventory $54,000; Prepaid Rent $3,000; Accounts Payable $23,000; Long-Term Notes Payable $20,000; and Unearned Revenue $5,500. The company's acid-test ratio would be

Accepted Answer

A)   1.12:1
B)   0.38:1
C)   0.88:1
D)   1.07:1E) None of the above
F) C) and D)

Question 9

The owner's drawings account is closed to the Income Summary account in order to properly determine profit (or loss) for the period.

Accepted Answer

A) True 
 B)False

Question 10

The account, Supplies, will appear in the debit columns of the work sheet for all columns EXCEPT the

Accepted Answer

A)   trial balance.
B)   adjusted trial balance.
C)   balance sheet.
D)   income statement.E) A) and C)
F) A) and D)

Question 11

Although it may look unusual, when preparing a reversing entry you may create

Accepted Answer

A)   a debit balance in an asset account.
B)   a credit balance a liability account.
C)   no change; all accounts remain in the same balance.
D)   a credit balance in an expense account.E) A) and D)
F) All of the above

Question 12

The unadjusted trial balance columns of the work sheet show the balance in the Prepaid Insurance account at $2,250. The adjustments columns show that $625 of this insurance was used during the period. Assuming there is no other charges to insurance expense during the year, what amount would be shown as Insurance Expense in the income statement columns?

Accepted Answer

A)   $1,625 debit.
B)   $625 credit.
C)   $625 debit.
D)   $2,250 debit.E) A) and C)
F) None of the above

Question 13

Which of the following steps in the accounting cycle would NOT generally be performed daily?

Accepted Answer

A)   Journalize transactions.
B)   Post to ledger accounts.
C)   Prepare adjusting entries.
D)   Analyze business transactions.E) B) and C)
F) A) and C)

Question 14

The accounting cycle begins at the start of a new accounting period.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is the final step in the accounting cycle?

Accepted Answer

A)   Journalize the transactions.
B)   Post to ledger accounts.
C)   Preparing a post-closing trial balance.
D)   Journalize and post closing entries.E) C) and D)
F) A) and D)

Question 16

A post-closing trial balance will show

Accepted Answer

A)   only permanent account balances.
B)   only temporary account balances.
C)   zero balances for all accounts.
D)   the amount of profit (or loss)  for the period.E) B) and C)
F) A) and B)

Question 17

The current ratio is the ratio of current liabilities divided by current assets.

Accepted Answer

A) True 
 B)False

Question 18

Assets, liabilities, and equity accounts are considered

Accepted Answer

A)   temporary accounts.
B)   closing accounts.
C)   permanent accounts.
D)   contra accounts.E) C) and D)
F) A) and D)

Question 19

Which of the following is a true statement about closing the books of a proprietorship?

Accepted Answer

A)   Expenses are closed to the owner's drawings account.
B)   Only revenues are closed to the Income Summary account.
C)   Only revenues and expenses are closed to the Income Summary account.
D)   Revenues, expenses, and the owner's drawings account are closed to the Income Summary account.E) None of the above
F) A) and D)

Question 20

The balance in the Owner's Drawings account after all closing entries have been posted will be equal to

Accepted Answer

A)   zero.
B)   the profit (or loss)  for the period.
C)   the cash withdrawn by the owner during the period.
D)   the balance in the Owner's Capital account.E) A) and B)
F) A) and C)

Exam 4: Completion of the Accounting Cycle

The work sheet does NOT show

Correct Answer
verified

For entity's reporting under International Financial Reporting Standards, "non- current assets" is typically presented on the Balance Sheet

Correct Answer
verified

Another name for Balance Sheet is the Statement of Financial Position.

Correct Answer
verified

The adjustments on a work sheet can be posted directly to the accounts in the ledger from the work sheet.

Correct Answer
verified

Correct Answer
verified

Although it may look unusual, when preparing a reversing entry you may create

Correct Answer
verified

The last three steps in the accounting cycle include prepare financial statements, journalize and post closing entries, and prepare a post-closing trial balance.

Correct Answer
verified

Which of the following is the final step in the accounting cycle?

Correct Answer
verified

Which of the following is a true statement about closing the books of a proprietorship?

Correct Answer
verified

Assets, liabilities, and equity accounts are considered

Correct Answer
verified

Correct Answer
verified

The account, Supplies, will appear in the debit columns of the work sheet for all columns EXCEPT the

Correct Answer
verified

The accounting cycle begins at the start of a new accounting period.

Correct Answer
verified

Which of the following depicts the proper sequence of steps in the accounting cycle?

Correct Answer
verified

The current ratio is expressed as

Correct Answer
verified

The current ratio is the ratio of current liabilities divided by current assets.

Correct Answer
verified

A post-closing trial balance will show

Correct Answer
verified

Which of the following steps in the accounting cycle would NOT generally be performed daily?

Correct Answer
verified

The owner's drawings account is closed to the Income Summary account in order to properly determine profit (or loss) for the period.

Correct Answer
verified

The balance in the Owner's Drawings account after all closing entries have been posted will be equal to

Correct Answer
verified

Exam 4: Completion of the Accounting Cycle

The work sheet does NOT show

Correct AnswerverifiedShow Answer

For entity's reporting under International Financial Reporting Standards, "non- current assets" is typically presented on the Balance Sheet

Correct AnswerverifiedShow Answer

Another name for Balance Sheet is the Statement of Financial Position.

Correct AnswerverifiedShow Answer

The adjustments on a work sheet can be posted directly to the accounts in the ledger from the work sheet.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Although it may look unusual, when preparing a reversing entry you may create

Correct AnswerverifiedShow Answer

The last three steps in the accounting cycle include prepare financial statements, journalize and post closing entries, and prepare a post-closing trial balance.

Correct AnswerverifiedShow Answer

Which of the following is the final step in the accounting cycle?

Correct AnswerverifiedShow Answer

Which of the following is a true statement about closing the books of a proprietorship?

Correct AnswerverifiedShow Answer

Assets, liabilities, and equity accounts are considered

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The account, Supplies, will appear in the debit columns of the work sheet for all columns EXCEPT the

Correct AnswerverifiedShow Answer

The accounting cycle begins at the start of a new accounting period.

Correct AnswerverifiedShow Answer

Which of the following depicts the proper sequence of steps in the accounting cycle?

Correct AnswerverifiedShow Answer

The current ratio is expressed as

Correct AnswerverifiedShow Answer

The current ratio is the ratio of current liabilities divided by current assets.

Correct AnswerverifiedShow Answer

A post-closing trial balance will show

Correct AnswerverifiedShow Answer

Which of the following steps in the accounting cycle would NOT generally be performed daily?

Correct AnswerverifiedShow Answer

The owner's drawings account is closed to the Income Summary account in order to properly determine profit (or loss) for the period.

Correct AnswerverifiedShow Answer

The balance in the Owner's Drawings account after all closing entries have been posted will be equal to

Correct AnswerverifiedShow Answer

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