Question 1

The adjustments entered in the adjustments columns of a worksheet are

Accepted Answer

A)   not journalized.
B)   posted to the ledger but not journalized.
C)   not journalized until after the financial statements are prepared.
D)   journalized before the worksheet is completed.E) A) and B)
F) C) and D)

Question 2

Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is

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The answer of Jawbreaker Company paid $940 on account to...

Question 3

Which statement about long-term investments is not true?

Accepted Answer

A)   They will be held for more than one year.
B)   They are not currently used in the operation of the business.
C)   They include investments in stock of other companies and land held for future use.
D)   They can never include cash accounts.E) B) and C)
F) All of the above

Question 4

The classified balance sheet is

Accepted Answer

A)   required under GAAP but not under IFRS.
B)   required under IFRS in the same format as under GAAP.
C)   required under IFRS but not under GAAP.
D)   required under IFRS with certain variations in format as compared to GAAP.IFRS.E) All of the above
F) A) and B)

Question 5

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information:  At June 1, 2018, Camera Obscura reported retained earnings of $35,000. The company had no dividends during June. At June 30, 2018, the company will report retained earnings of

Accepted Answer

A)   $29,300.
B)   $35,000.
C)   $36,300.
D)   $42,000.E) B) and C)
F) A) and B)

Question 6

Presented below is an adjusted trial balance for Shawn Company, at December 31, 2018.  
Instructions
(a) Prepare closing entries for December 31, 2018.
(b) Determine the balance in the Retained Earnings account after the entries have been posted.

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The answer of Presented below is an adjusted trial balance...

Question 7

The closing entry process consists of closing

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A)   all asset and liability accounts.
B)   out the retained earnings account.
C)   all permanent accounts.
D)   all temporary accounts.E) C) and D)
F) A) and D)

Question 8

The trial balances of Orton Company follow with the accounts arranged in alphabetic order. Analyze the data and prepare (a) the adjusting entries and (b) the closing entries made by Orton Company.

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The answer of The trial balances of Orton Company follow...

Question 9

If the total debits exceed total credits in the balance sheet columns of the worksheet, stockholders' equity

Accepted Answer

A)   will increase because net income has occurred.
B)   will decrease because a net loss has occurred.
C)   is in error because a mistake has occurred.
D)   will not be affected.E) A) and B)
F) B) and C)

Question 10

The most important information needed to determine if companies can pay their current obligations is the

Accepted Answer

A)   net income for this year.
B)   projected net income for next year.
C)   relationship between current assets and current liabilities.
D)   relationship between short-term and long-term liabilities.E) C) and D)
F) None of the above

Question 11

The income statement for the year 2018 of Fugazi Co. contains the following information:  The entry to close the expense accounts includes a

Accepted Answer

A)   debit to Income Summary for $7,500.
B)   credit to Income Summary for $7,500.
C)   debit to Income Summary for $77,500.
D)   debit to Utilities Expense for $2,500.E) A) and B)
F) A) and C)

Question 12

The income statement for the year 2018 of Fugazi Co. contains the following information:  After all closing entries have been posted, the revenue account will have a balance of

Accepted Answer

A)   $0.
B)   $70,000 credit.
C)   $70,000 debit.
D)   $7,500 credit.E) B) and D)
F) A) and C)

Question 13

Closing entries are journalized after adjusting entries have been journalized.

Accepted Answer

A) True 
 B)False

Question 14

Use the following income statement for the year 2018 for Belle Company to prepare entries to close the revenue and expense accounts for the company.

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The answer of Use the following income statement for the...

Question 15

An error has occurred in the closing entry process if

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A)   revenue and expense accounts have zero balances.
B)   the retained earnings account is credited for the amount of net income.
C)   the dividends account is closed to the retained earnings account.
D)   the balance sheet accounts have zero balances.E) All of the above
F) B) and C)

Question 16

These are selected account balances on December 31, 2018.  What is the total amount of property, plant, and equipment that will appear on the balance sheet?

Accepted Answer

A)   $975,000
B)   $1,125,000
C)   $1,175,000
D)   $1,400,000E) B) and C)
F) A) and B)

Question 17

Sebastien Company earned net income of $44,000 during 2018. The company paid dividends totalling $20,000 during the period. Prepare the entries to close Income Summary and the Dividends account.

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The answer of Sebastien Company earned net income of $44,000...

Question 18

The balance in the income summary account before it is closed will be equal to

Accepted Answer

A)   the net income or loss on the income statement.
B)   the beginning balance in the retained earnings account.
C)   the ending balance in the retained earnings account.
D)   zero.E) A) and B)
F) A) and D)

Question 19

After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to

Accepted Answer

A)   the beginning retained earnings reported on the retained earnings statement.
B)   the amount of the retained earnings reported on the balance sheet.
C)   zero.
D)   the net income for the period.E) B) and D)
F) A) and D)

Question 20

Which one of the following statements concerning the accounting cycle is incorrect?

Accepted Answer

A)   The accounting cycle includes journalizing transactions and posting to ledger accounts.
B)   The accounting cycle includes only one optional step.
C)   The steps in the accounting cycle are performed in sequence.
D)   The steps in the accounting cycle are repeated in each accounting period.E) All of the above
F) A) and C)

Exam 4: Completing the Accounting Cycle

The classified balance sheet is

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The closing entry process consists of closing

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Which statement about long-term investments is not true?

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The most important information needed to determine if companies can pay their current obligations is the

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Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is

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After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to

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The income statement for the year 2018 of Fugazi Co. contains the following information: The entry to close the expense accounts includes a

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These are selected account balances on December 31, 2018. What is the total amount of property, plant, and equipment that will appear on the balance sheet?

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Which one of the following statements concerning the accounting cycle is incorrect?

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If the total debits exceed total credits in the balance sheet columns of the worksheet, stockholders' equity

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The income statement for the year 2018 of Fugazi Co. contains the following information: After all closing entries have been posted, the revenue account will have a balance of

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The balance in the income summary account before it is closed will be equal to

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The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: At June 1, 2018, Camera Obscura reported retained earnings of $35,000. The company had no dividends during June. At June 30, 2018, the company will report retained earnings of

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The adjustments entered in the adjustments columns of a worksheet are

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The trial balances of Orton Company follow with the accounts arranged in alphabetic order. Analyze the data and prepare (a) the adjusting entries and (b) the closing entries made by Orton Company.

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Sebastien Company earned net income of $44,000 during 2018. The company paid dividends totalling $20,000 during the period. Prepare the entries to close Income Summary and the Dividends account.

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Closing entries are journalized after adjusting entries have been journalized.

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Presented below is an adjusted trial balance for Shawn Company, at December 31, 2018. Instructions (a) Prepare closing entries for December 31, 2018. (b) Determine the balance in the Retained Earnings account after the entries have been posted.

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An error has occurred in the closing entry process if

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Use the following income statement for the year 2018 for Belle Company to prepare entries to close the revenue and expense accounts for the company.

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