Question 1

A post-closing trial balance will show

Accepted Answer

A)   zero balances for all accounts.
B)   zero balances for balance sheet accounts.
C)   only balance sheet accounts.
D)   only income statement accounts.

Question 2

In order to close a revenue account, the

Accepted Answer

A)   income summary account should be credited.
B)   income summary account should be debited.
C)   owner's drawings account should be credited.
D)   owner's drawings account should be debited.

Question 3

The Singh Company paid $630 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $360 and a credit to Accounts Receivable, $360. The correcting entry is

Accepted Answer

The answer of The Singh Company paid $630 on account...

Question 4

After the closing entries are posted to the accounts, a trial balance will show balances only in the Balance Sheet Accounts.

Accepted Answer

A) True 
 B)False

Question 5

Match between columns
                        Premises: A temporary account used to close revenues and expenses
Entries to correct errors made in recording transactions
Balance sheet accounts whose balances are carried forward to the next period
Resources that are expected to be realized in cash, sold, or consumed within one year of the balance sheet
The exact opposite of an adjusting entry made in a previous period
Obligations expected to be paid after one year
A temporary account used to account for owner withdrawals
An optional tool that facilitates the preparation of financial statements
Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner's equity account

Accepted Answer

The Answer of Income summary and Permanent accounts and Non-current is...

Question 6

Under International Financial Reporting Standards, current assets may be shown after non current assets on the Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 7

If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity

Accepted Answer

A)   will increase because profit has occurred.
B)   will decrease because a loss has occurred.
C)   is in error because a mistake has occurred.
D)   will not be affected.

Question 8

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.

Question 9

Which of the following would NOT affect the acid-test ratio?

Accepted Answer

A)   increasing supplies
B)   decreasing accounts receivable
C)   increasing cash
D)   decreasing accounts payable

Question 10

Abbott Manufacturing Company's current ratio is 2:1. The company has $50,000 in current liabilities; current assets must be $25,000.

Accepted Answer

A) True 
 B)False

Question 11

A liability is classified as a current liability if it is to be settled within one year from the balance sheet date or in the company's normal operating cycle.

Accepted Answer

A) True 
 B)False

Exam 4: Completion of the Accounting Cycle

Under International Financial Reporting Standards, current assets may be shown after non current assets on the Balance Sheet.

Correct Answer
verified

Match the items below by entering the appropriate code letter in the space provided.

Which of the following would NOT affect the acid-test ratio?

Correct Answer
verified

After the closing entries are posted to the accounts, a trial balance will show balances only in the Balance Sheet Accounts.

Correct Answer
verified

The Singh Company paid $630 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $360 and a credit to Accounts Receivable, $360. The correcting entry is

Correct Answer
verified

In order to close a revenue account, the

Correct Answer
verified

A liability is classified as a current liability if it is to be settled within one year from the balance sheet date or in the company's normal operating cycle.

Correct Answer
verified

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

Correct Answer
verified

If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity

Correct Answer
verified

A post-closing trial balance will show

Correct Answer
verified

Abbott Manufacturing Company's current ratio is 2:1. The company has $50,000 in current liabilities; current assets must be $25,000.

Correct Answer
verified

Exam 4: Completion of the Accounting Cycle

Under International Financial Reporting Standards, current assets may be shown after non current assets on the Balance Sheet.

Correct AnswerverifiedShow Answer

Match the items below by entering the appropriate code letter in the space provided.

Which of the following would NOT affect the acid-test ratio?

Correct AnswerverifiedShow Answer

After the closing entries are posted to the accounts, a trial balance will show balances only in the Balance Sheet Accounts.

Correct AnswerverifiedShow Answer

The Singh Company paid $630 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $360 and a credit to Accounts Receivable, $360. The correcting entry is

Correct AnswerverifiedShow Answer

In order to close a revenue account, the

Correct AnswerverifiedShow Answer

A liability is classified as a current liability if it is to be settled within one year from the balance sheet date or in the company's normal operating cycle.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity

Correct AnswerverifiedShow Answer

A post-closing trial balance will show

Correct AnswerverifiedShow Answer

Abbott Manufacturing Company's current ratio is 2:1. The company has $50,000 in current liabilities; current assets must be $25,000.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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