Question 1

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Accepted Answer

A) True 
 B)False

Question 2

The end-of-period spreadsheet

Accepted Answer

A)  is an integral part of the accounting cycle
B)  eliminates the need to rewrite the financial statements
C)  is a working paper that is required
D)  is used to summarize account balances and adjustments for the financial statements

Question 3

Once an account has been closed for the period,inserting a line in the balance columns zeros out the account,making it ready for the following period.

Accepted Answer

A) True 
 B)False

Question 4

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns are $36,755 and $32,735,respectively.What is the amount of net income or net loss for the period?

Accepted Answer

A)  $4,020 net income
B)  $36,755 net loss
C)  $4,020 net loss
D)  $32,735 net income

Question 5

All income statement accounts will be closed at the end of the period.

Accepted Answer

A) True 
 B)False

Question 6

If the totals of the Income Statement debit and credit columns of a work sheet 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 7

When the end-of-period spreadsheet is complete,the adjustment columns should have

Accepted Answer

A)  total credits greater than total debits if a net income was earned
B)  total debits greater than total credits if a net loss was incurred
C)  total debits greater than total credits if a net income was earned
D)  total debits are equal to total credits

Question 8

Stockholders' equity is

Accepted Answer

A)  added to assets and the two are equal to liabilities
B)  added to liabilities and the two are equal to assets
C)  subtracted from liabilities and the net amount is equal to assets
D)  equal to the total of assets and liabilities

Question 9

During the end-of-period processing,which of the following best describes the logical order of steps?

Accepted Answer

A)  preparation of adjustments,adjusted trial balance,financial statements
B)  preparation of income statement,adjusted trial balance,balance sheet
C)  preparation of adjusted trial balance,cross-referencing,journalizing
D)  preparation of adjustments,adjusted trial balance,posting

Question 10

The following are all the steps in the accounting cycle.List them in the order in which they should be done.
- Closing entries are journalized and posted to the ledger.
- An unadjusted trial balance is prepared.
- An optional end-of-period spreadsheet work sheet is prepared.
- A post-closing trial balance is prepared.
- Adjusting entries are journalized and posted to the ledger.
- Transactions are analyzed and recorded in the journal.
- Adjustment data are assembled and analyzed.
- Financial statements are prepared.
- An adjusted trial balance is prepared.
- Transactions are posted to the ledger.

Accepted Answer

1.	Transactions are analyzed and recorde...

Question 11

Unearned Fees appear on the

Accepted Answer

A)  balance sheet in the current assets section
B)  balance sheet as a current liability
C)  balance sheet in the shareholders' equity section
D)  income statement as revenue

Question 12

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Accepted Answer

A)  the word "Total" written at the bottom of each pair of columns
B)  the double rule under each pair of columns
C)  the circles around each total
D)  the final figures written in ink

Question 13

After analyzing transactions,the next step would be to post the transactions in the ledger.

Accepted Answer

A) True 
 B)False

Question 14

Notes receivable due in 390 days appear on the

Accepted Answer

A)  balance sheet in the current assets section
B)  balance sheet in the noncurrent assets section
C)  balance sheet in the current liabilities section
D)  income statement as an expense

Question 15

There is really no benefit in preparing financial statements in any particular order.

Accepted Answer

A) True 
 B)False

Question 16

Closing entries are dated in the journal as of

Accepted Answer

A)  the date they are actually journalized,although they are generally prepared after the end of the accounting period
B)  the last day of the accounting period,although they are actually journalized after the end of the accounting period
C)  the first day of the accounting period,although they are actually journalized well after the beginning of the accounting period
D)  the first day of the subsequent accounting period

Question 17

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

Accepted Answer

A)  neither net income or loss can be calculated because it is found on the income statement
B)  the company has a net loss of $3,415 for the period
C)  the company has a net income of $3,415 for the period
D)  the amounts are out of balance and need to be corrected

Question 18

Debts listed as current liabilities are those that

Accepted Answer

A)  will be paid in less than one year
B)  are due to be paid in 5 to 10 years
C)  are due to be paid in more than one year
D)  are owed to the stockholders and will never be paid

Question 19

All companies must use a calendar year as their fiscal year.

Accepted Answer

A) True 
 B)False

Question 20

On January 1,Hannah's Pool Service Company had a retained earnings balance of $252,000.During the year Hannah's stockholders bought an additional $32,000 in common stock and received dividends of $52,200.For the year ended December 31 Hannah's Pool Service Company reported a net income of $73,200.Prepare a statement of retained earnings for the year ended December 31.

Accepted Answer

Hannah's Pool Service Company

...

Exam 4: Completing the Accounting Cycle

Correct Answer
verified
Hannah's Pool Service Company
...
View Answer

After analyzing transactions,the next step would be to post the transactions in the ledger.

Correct Answer
verified

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Correct Answer
verified

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns are $36,755 and $32,735,respectively.What is the amount of net income or net loss for the period?

Correct Answer
verified

Stockholders' equity is

Correct Answer
verified

Closing entries are dated in the journal as of

Correct Answer
verified

Once an account has been closed for the period,inserting a line in the balance columns zeros out the account,making it ready for the following period.

Correct Answer
verified

During the end-of-period processing,which of the following best describes the logical order of steps?

Correct Answer
verified

All companies must use a calendar year as their fiscal year.

Correct Answer
verified

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

Correct Answer
verified

Unearned Fees appear on the

Correct Answer
verified

If the totals of the Income Statement debit and credit columns of a work sheet 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

Correct Answer
verified
1. Transactions are analyzed and recorde...
View Answer

There is really no benefit in preparing financial statements in any particular order.

Correct Answer
verified

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Correct Answer
verified

Debts listed as current liabilities are those that

Correct Answer
verified

When the end-of-period spreadsheet is complete,the adjustment columns should have

Correct Answer
verified

Notes receivable due in 390 days appear on the

Correct Answer
verified

All income statement accounts will be closed at the end of the period.

Correct Answer
verified

The end-of-period spreadsheet

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Correct Answerverified Hannah's Pool Service Company ...View AnswerShow Answer

After analyzing transactions,the next step would be to post the transactions in the ledger.

Correct AnswerverifiedShow Answer

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns are $36,755 and $32,735,respectively.What is the amount of net income or net loss for the period?

Correct AnswerverifiedShow Answer

Stockholders' equity is

Correct AnswerverifiedShow Answer

Closing entries are dated in the journal as of

Correct AnswerverifiedShow Answer

Once an account has been closed for the period,inserting a line in the balance columns zeros out the account,making it ready for the following period.

Correct AnswerverifiedShow Answer

During the end-of-period processing,which of the following best describes the logical order of steps?

Correct AnswerverifiedShow Answer

All companies must use a calendar year as their fiscal year.

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

Correct AnswerverifiedShow Answer

Unearned Fees appear on the

Correct AnswerverifiedShow Answer

If the totals of the Income Statement debit and credit columns of a work sheet 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

Correct Answerverified1. Transactions are analyzed and recorde...View AnswerShow Answer

There is really no benefit in preparing financial statements in any particular order.

Correct AnswerverifiedShow Answer

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Correct AnswerverifiedShow Answer

Debts listed as current liabilities are those that

Correct AnswerverifiedShow Answer

When the end-of-period spreadsheet is complete,the adjustment columns should have

Correct AnswerverifiedShow Answer

Notes receivable due in 390 days appear on the

Correct AnswerverifiedShow Answer

All income statement accounts will be closed at the end of the period.

Correct AnswerverifiedShow Answer

The end-of-period spreadsheet

Correct AnswerverifiedShow Answer

Correct Answer
verified
Hannah's Pool Service Company
...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
1. Transactions are analyzed and recorde...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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