Question 1

The following information (in thousands)  is for Zháng Office Supplies:  The total dollar amount of assets to be classified as current assets is

Accepted Answer

A)  ¥290,000.
B)  ¥215,000.
C)  ¥180,000.
D)  ¥145,000.

Question 2

On May 25, Carlin Company received a $550 check from Andy Jeter for services to be performed in the future.The bookkeeper for Carlin Company incorrectly debited Cash for $550 and credited Accounts Receivable for $550.The amounts have been posted to the ledger.To correct this entry, the bookkeeper should:

Accepted Answer

A)  debit Cash $550 and credit Unearned Service Revenue $550.
B)  debit Accounts Receivable $550 and credit Service Revenue $550.
C)  debit Accounts Receivable $550 and credit Cash $550.
D)  debit Accounts Receivable $550 and credit Unearned Service Revenue $550.

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.

Question 4

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Expenses are closed to the Expense Summary account.
B)  Only revenues are closed to the Income Summary account.
C)  Revenues and expenses are closed to the Income Summary account.
D)  Revenues, expenses, and the dividends account are closed to the Income Summary account.

Question 6

The sub-classifications for assets on the company's classified statement of financial position would include all of the following except:

Accepted Answer

A)  Current Assets.
B)  Property, Plant, and Equipment.
C)  Intangible Assets.
D)  Long-term Assets.

Question 7

The current assets should be listed on Dinkel's statement of financial position in the following order:

Accepted Answer

A)  accounts receivable, prepaid insurance, equipment, cash.
B)  accounts receivable, prepaid insurance, supplies, cash.
C)  prepaid insurance, supplies, accounts, receivable, cash.
D)  equipment, supplies, prepaid insurance, accounts receivable, cash.

Question 8

It is not true that current assets are assets that a company expects to

Accepted Answer

A)  realize in cash within one year.
B)  sell within one year.
C)  use up within one year.
D)  acquire within one year.

Question 9

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Accepted Answer

A) True 
 B)False

Question 10

Current liabilities

Accepted Answer

A)  are obligations that the company is to pay within the forthcoming year.
B)  are listed in the statement of financial position in order of their expected maturity.
C)  are listed in the statement of financial position starting with accounts payable.
D)  should not include long-term debt that is expected to be paid within the next year.

Question 11

In preparing closing entries

Accepted Answer

A)  each revenue account will be credited.
B)  each expense account will be credited.
C)  the retained earnings account will be debited if there is net income for the period.
D)  the dividends account will be debited.

Question 12

After the revenue and expense accounts have been closed, the balance in Income Summary will be

Accepted Answer

A)  ₤0.
B)  a debit balance of ₤3,400.
C)  a credit balance of ₤3,400.
D)  a credit balance of ₤7,000.

Question 13

Long-term investments would appear in the property, plant, and equipment section of the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 14

The steps in the preparation of a worksheet do not include

Accepted Answer

A)  analyzing documentary evidence.
B)  preparing a trial balance on the worksheet.
C)  entering the adjustments in the adjustment columns.
D)  entering adjusted balances in the adjusted trial balance columns.

Question 15

The purpose of the post-closing trial balance is to

Accepted Answer

A)  prove that no mistakes were made.
B)  prove the equality of the statement of financial position account balances that are carried forward into the next accounting period.
C)  prove the equality of the income statement account balances that are carried forward into the next accounting period.
D)  list all the statement of financial position accounts in alphabetical order for easy reference.

Question 16

Which of the following is an optional step in the accounting cycle?

Accepted Answer

A)  Adjusting entries
B)  Closing entries
C)  Correcting entries
D)  Reversing entries

Question 17

At June 1, 2011, Taylor reported Retained Earnings of ₤35,000.The company paid no dividends during June.At June 30, 2011, the company will report Retained Earnings of

Accepted Answer

A)  ₤35,000.
B)  ₤42,000.
C)  ₤38,400.
D)  ₤31,600.

Question 18

A worksheet can be thought of as a(n)

Accepted Answer

A)  permanent accounting record.
B)  optional device used by accountants.
C)  part of the general ledger.
D)  part of the journal.

Question 19

An error has occurred in the closing entry process if

Accepted Answer

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 Statement of financial position accounts have zero balances.

Question 20

All of the following statements about the post-closing trial balance are correct except it

Accepted Answer

A)  shows that the accounting equation is in balance.
B)  provides evidence that the journalizing and posting of closing entries have been properly completed.
C)  contains only permanent accounts.
D)  proves that all transactions have been recorded.

Exam 4: Completing the Accounting Cycle

A worksheet can be thought of as a(n)

Correct Answer
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The following information (in thousands) is for Zháng Office Supplies: The total dollar amount of assets to be classified as current assets is

Correct Answer
verified

Current liabilities

Correct Answer
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Correct Answer
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The steps in the preparation of a worksheet do not include

Correct Answer
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The sub-classifications for assets on the company's classified statement of financial position would include all of the following except:

Correct Answer
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The purpose of the post-closing trial balance is to

Correct Answer
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Which of the following is an optional step in the accounting cycle?

Correct Answer
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All of the following statements about the post-closing trial balance are correct except it

Correct Answer
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An error has occurred in the closing entry process if

Correct Answer
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Long-term investments would appear in the property, plant, and equipment section of the statement of financial position.

Correct Answer
verified

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Correct Answer
verified

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

Correct Answer
verified

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.

Correct Answer
verified

It is not true that current assets are assets that a company expects to

Correct Answer
verified

After the revenue and expense accounts have been closed, the balance in Income Summary will be

Correct Answer
verified

At June 1, 2011, Taylor reported Retained Earnings of ₤35,000.The company paid no dividends during June.At June 30, 2011, the company will report Retained Earnings of

Correct Answer
verified

The current assets should be listed on Dinkel's statement of financial position in the following order:

Correct Answer
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In preparing closing entries

Correct Answer
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Which statement about long-term investments is not true?

Correct Answer
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Exam 4: Completing the Accounting Cycle

A worksheet can be thought of as a(n)

Correct AnswerverifiedShow Answer

The following information (in thousands) is for Zháng Office Supplies: The total dollar amount of assets to be classified as current assets is

Correct AnswerverifiedShow Answer

Current liabilities

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The steps in the preparation of a worksheet do not include

Correct AnswerverifiedShow Answer

The sub-classifications for assets on the company's classified statement of financial position would include all of the following except:

Correct AnswerverifiedShow Answer

The purpose of the post-closing trial balance is to

Correct AnswerverifiedShow Answer

Which of the following is an optional step in the accounting cycle?

Correct AnswerverifiedShow Answer

All of the following statements about the post-closing trial balance are correct except it

Correct AnswerverifiedShow Answer

An error has occurred in the closing entry process if

Correct AnswerverifiedShow Answer

Long-term investments would appear in the property, plant, and equipment section of the statement of financial position.

Correct AnswerverifiedShow Answer

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.

Correct AnswerverifiedShow Answer

It is not true that current assets are assets that a company expects to

Correct AnswerverifiedShow Answer

After the revenue and expense accounts have been closed, the balance in Income Summary will be

Correct AnswerverifiedShow Answer

At June 1, 2011, Taylor reported Retained Earnings of ₤35,000.The company paid no dividends during June.At June 30, 2011, the company will report Retained Earnings of

Correct AnswerverifiedShow Answer

The current assets should be listed on Dinkel's statement of financial position in the following order:

Correct AnswerverifiedShow Answer

In preparing closing entries

Correct AnswerverifiedShow Answer

Which statement about long-term investments is not true?

Correct AnswerverifiedShow Answer

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