Question 1

Prepaid Rent in the worksheet's unadjusted trial balance column is $7,000. Prepaid Rent in the balance sheet column is $6,000. Which of the following entries would have caused this difference?

Accepted Answer

A)   a $1,000 debit entry to Prepaid Rent in the worksheet's adjustments column
B)   a $1,000 credit entry to Rent Expense in the worksheet's adjustments column
C)   a $1,000 credit entry to Prepaid Rent in the worksheet's adjustments column
D)   a $1,000 credit entry to Rental Revenue in the worksheet's adjustments column

Question 2

Which of the following is a permanent account?

Accepted Answer

A)   Wages Expense
B)   Salaries Payable
C)   Service Revenue
D)   Utilities Expense

Question 3

The last two columns generally found on the right side of the worksheet are the income statement columns.

Accepted Answer

A) True 
 B)False

Question 4

List the steps of the accounting cycle that take place during the period.

Accepted Answer

Step 1. Start with beginning a...

Question 5

Your Business Advisor, a consulting company, uses reversing entries. On March 31, 2018, the bookkeeper journalized and posted the following adjusting entry to accrue Utilities Expense:   Utilities Expense 400 Utilities Payable 400\begin{array} { | c | r | r | } \hline 	ext { Utilities Expense } & 400 & \\hline 	ext { Utilities Payable } & & 400 \\hline\end{array} Utilities Expense  Utilities Payable ​400​400​​  Which of the following entries is the correct reversing entry to be prepared on April 1, 2018?

Accepted Answer

A)     Utilities Payable 400 Utilities Expense 400\begin{array} { | c | r | r | } \hline 	ext { Utilities Payable } & 400 & \\hline 	ext { Utilities Expense } & & 400 \\hline\end{array} Utilities Payable  Utilities Expense ​400​400​​ 
B)     Utilities Expense 400 Income Summary 400\begin{array} { | c | r | r | } \hline 	ext { Utilities Expense } & 400 & \\hline 	ext { Income Summary } & & 400 \\hline\end{array} Utilities Expense  Income Summary ​400​400​​ 
C)     Cash 400 Utilities Expense 400\begin{array} { | c | r | r | } \hline 	ext { Cash } & 400 & \\hline 	ext { Utilities Expense } & & 400 \\hline\end{array} Cash  Utilities Expense ​400​400​​ 
D)     Utilities Expense 400 Accounts Receivable 400\begin{array} { | c | r | r | } \hline 	ext { Utilities Expense } & 400 & \\hline 	ext { Accounts Receivable } & & 400 \\hline\end{array} Utilities Expense  Accounts Receivable ​400​400​​

Question 6

In which of the columns of a worksheet would a net loss be found?

Accepted Answer

A)   in the balance sheet credit column and the income statement debit column
B)   in the balance sheet debit column and the income statement credit column
C)   in the unadjusted trial balance credit column, the adjusted trial balance credit column, and the balance sheet credit column
D)   in the unadjusted trial balance debit column, the adjusted trial balance debit column, and the balance sheet debit column

Question 7

The following is the adjusted trial balance for Baker Services.   Accounts  Debit  Credit  Cash $34,000 Accounts Receivable 28,000 Prepaid Insurance 7,500 Office Supplies 3,000 Land 48,000 Building 150,000 Accumulated Depreciation-Building $15,500 Equipment 71,000 Accumulated Depreciation-Equipment 7,000 Accounts Payable 23,000 Salaries Payable 4,000 Unearned Revenue 29,000 Mortgage Payable 100,000 Common Stock 10,000 Retained Earnings 11,500 Dividends 22,000 Service Revenue 280,000 Salaries Expense 62,000 Depreciation Expense-Building and  Equipment 5,900 Supplies Expense 14,000 Insurance Expense 14,600 Utilities Expense 20,000 Total $480,000$480,000\begin{array}{|c|c|c|}\hline 	ext { Accounts } & 	ext { Debit } & 	ext { Credit } \\hline 	ext { Cash } & \$ 34,000 & \\hline 	ext { Accounts Receivable } & 28,000 & \\hline 	ext { Prepaid Insurance } & 7,500 & \\hline 	ext { Office Supplies } & 3,000 & \\hline 	ext { Land } & 48,000 & \\hline 	ext { Building } & 150,000 & \\hline 	ext { Accumulated Depreciation-Building } & & \$ 15,500 \\hline 	ext { Equipment } & 71,000 & \\hline 	ext { Accumulated Depreciation-Equipment } & & 7,000 \\hline 	ext { Accounts Payable } & & 23,000 \\hline 	ext { Salaries Payable } & & 4,000 \\hline 	ext { Unearned Revenue } & & 29,000 \\hline 	ext { Mortgage Payable } & & 100,000 \\hline 	ext { Common Stock } & & 10,000 \\hline 	ext { Retained Earnings } & & 11,500 \\hline 	ext { Dividends } & 22,000 & \\hline 	ext { Service Revenue } & & 280,000 \\hline 	ext { Salaries Expense } & 62,000 & \\hline \begin{array}{l}	ext { Depreciation Expense-Building and } \	ext { Equipment }\end{array} & 5,900 & \\hline 	ext { Supplies Expense } & 14,000 & \\hline 	ext { Insurance Expense } & 14,600 & \\hline 	ext { Utilities Expense } & 20,000 & \\hline 	ext { Total } & \$ 480,000 & \$ 480,000 \\hline\end{array} Accounts  Cash  Accounts Receivable  Prepaid Insurance  Office Supplies  Land  Building  Accumulated Depreciation-Building  Equipment  Accumulated Depreciation-Equipment  Accounts Payable  Salaries Payable  Unearned Revenue  Mortgage Payable  Common Stock  Retained Earnings  Dividends  Service Revenue  Salaries Expense  Depreciation Expense-Building and  Equipment ​ Supplies Expense  Insurance Expense  Utilities Expense  Total ​ Debit $34,00028,0007,5003,00048,000150,00071,00022,00062,0005,90014,00014,60020,000$480,000​ Credit $15,5007,00023,0004,00029,000100,00010,00011,500280,000$480,000​​  After the closing entries are posted, what is the balance in Retained Earnings?

Accepted Answer

A)   $22,000
B)   $185,000
C)   $21,500
D)   $153,000

Question 8

Revenues and expenses may be transferred to the ________ account before their final transfer into the Retained Earnings account.

Accepted Answer

A)   Net Income
B)   Income Summary
C)   Dividends
D)   Assets

Question 9

Buildings, land, and equipment are classified as ________.

Accepted Answer

A)   current assets
B)   long-term assets
C)   current liabilities
D)   long-term liabilities

Question 10

A worksheet can be used to help prepare adjusting entries and the financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Only temporary accounts appear on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 12

On December 31, 2018, Action Services, Inc. prepared the following accrual adjustment:
 $$\begin{array} { | c | r | r | } 
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Salaries Payable } & & 1,000 \
\hline
\end{array}$$ Action uses reversing entries. Prepare the reversing entry on January 1, 2019. Omit explanation.

Accepted Answer

\[\begin{array} { | c | r | r ...

Question 13

The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________ entries.

Accepted Answer

A)   closing
B)   opening
C)   adjusting
D)   end of period

Question 14

Asset and liability accounts may be closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 15

The adjusting process zeroes out all revenue accounts and all expense accounts.

Accepted Answer

A) True 
 B)False

Question 16

The Dividends account is included in the income statement section of the worksheet.

Accepted Answer

A) True 
 B)False

Question 17

Preparing the worksheet is a required step of the accounting cycle.

Accepted Answer

A) True 
 B)False

Question 18

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts, including all revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following accounts will be included in a post-closing trial balance?

Accepted Answer

A)   Dividends
B)   Salaries Expense
C)   Common Stock
D)   Supplies Expense

Question 20

The Service Revenue account is a temporary account.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

List the steps of the accounting cycle that take place during the period.

Correct Answer
verified
Step 1. Start with beginning a...
View Answer

Correct Answer
verified

Which of the following accounts will be included in a post-closing trial balance?

Correct Answer
verified

Buildings, land, and equipment are classified as ________.

Correct Answer
verified

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts, including all revenues and expenses.

Correct Answer
verified

Preparing the worksheet is a required step of the accounting cycle.

Correct Answer
verified

The Dividends account is included in the income statement section of the worksheet.

Correct Answer
verified

The last two columns generally found on the right side of the worksheet are the income statement columns.

Correct Answer
verified

Only temporary accounts appear on the post-closing trial balance.

Correct Answer
verified

The adjusting process zeroes out all revenue accounts and all expense accounts.

Correct Answer
verified

In which of the columns of a worksheet would a net loss be found?

Correct Answer
verified

Correct Answer
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Correct Answer
verified
\[\begin{array} { | c | r | r ...
View Answer

Revenues and expenses may be transferred to the ________ account before their final transfer into the Retained Earnings account.

Correct Answer
verified

Which of the following is a permanent account?

Correct Answer
verified

The Service Revenue account is a temporary account.

Correct Answer
verified

Prepaid Rent in the worksheet's unadjusted trial balance column is $7,000. Prepaid Rent in the balance sheet column is $6,000. Which of the following entries would have caused this difference?

Correct Answer
verified

Asset and liability accounts may be closed to the Income Summary account.

Correct Answer
verified

A worksheet can be used to help prepare adjusting entries and the financial statements.

Correct Answer
verified

The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________ entries.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

List the steps of the accounting cycle that take place during the period.

Correct AnswerverifiedStep 1. Start with beginning a...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following accounts will be included in a post-closing trial balance?

Correct AnswerverifiedShow Answer

Buildings, land, and equipment are classified as ________.

Correct AnswerverifiedShow Answer

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts, including all revenues and expenses.

Correct AnswerverifiedShow Answer

Preparing the worksheet is a required step of the accounting cycle.

Correct AnswerverifiedShow Answer

The Dividends account is included in the income statement section of the worksheet.

Correct AnswerverifiedShow Answer

The last two columns generally found on the right side of the worksheet are the income statement columns.

Correct AnswerverifiedShow Answer

Only temporary accounts appear on the post-closing trial balance.

Correct AnswerverifiedShow Answer

The adjusting process zeroes out all revenue accounts and all expense accounts.

Correct AnswerverifiedShow Answer

In which of the columns of a worksheet would a net loss be found?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverified\[\begin{array} { | c | r | r ...View AnswerShow Answer

Revenues and expenses may be transferred to the ________ account before their final transfer into the Retained Earnings account.

Correct AnswerverifiedShow Answer

Which of the following is a permanent account?

Correct AnswerverifiedShow Answer

The Service Revenue account is a temporary account.

Correct AnswerverifiedShow Answer

Prepaid Rent in the worksheet's unadjusted trial balance column is $7,000. Prepaid Rent in the balance sheet column is $6,000. Which of the following entries would have caused this difference?

Correct AnswerverifiedShow Answer

Asset and liability accounts may be closed to the Income Summary account.

Correct AnswerverifiedShow Answer

A worksheet can be used to help prepare adjusting entries and the financial statements.

Correct AnswerverifiedShow Answer

The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________ entries.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Step 1. Start with beginning a...
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Correct Answer
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Correct Answer
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Correct Answer
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\[\begin{array} { | c | r | r ...
View 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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