Question 1

After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet,the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Accepted Answer

A) True 
 B)False

Question 2

The entry to close the dividends account would be

Accepted Answer

A)   debit Retained Earnings,$3,000; credit Dividends,$3,000
B)   debit Retained Earnings,$12,000; credit Dividends,$12,000
C)   debit Dividends,$3,000; credit Retained Earnings,$3,000
D)   debit Dividends,$12,000; credit Retained Earnings,$12,000

Question 3

Journalizing and posting closing entries must be completed before financial statements can be prepared.

Accepted Answer

A) True 
 B)False

Question 4

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31.
​
  Prepare the entry required to close the revenue accounts at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings.Below is...

Question 5

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Accepted Answer

A) True 
 B)False

Question 6

A summary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end. ​
 Net income for the period is

Accepted Answer

A)   $13,000
B)   $33,500
C)   $15,000
D)   $18,500

Question 7

The post-closing trial balance differs from the adjusted trial balance in that it does not

Accepted Answer

A)   take into account closing entries
B)   take into account adjusting entries
C)   include balance sheet accounts
D)   include income statement accounts

Question 8

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
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 9

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)   Utilities Expense
B)   Fees Earned
C)   Prepaid Insurance
D)   Insurance Expense

Question 10

On March 1,a company collects revenue in advance for the next twelve months and credits a liability account.The adjusting entry at year end on the end-of-period spreadsheet would

Accepted Answer

A)   increase a liability account
B)   decrease an asset account
C)   decrease a revenue account
D)   decrease a liability account

Question 11

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 12

Of the following steps of the accounting cycle,which step should be completed last?

Accepted Answer

A)   An adjusted trial balance is prepared.
B)   Transactions are posted to the ledger.
C)   An unadjusted trial balance is prepared.
D)   Adjusting entries are journalized and posted to the ledger.

Question 13

Cash and other assets that may reasonably be expected to be realized in cash,sold,or consumed through the normal operations of a business,usually longer than one year,are called current assets.

Accepted Answer

A) True 
 B)False

Question 14

Of the following steps of the accounting cycle,which step should be completed first?

Accepted Answer

A)   Closing entries are journalized and posted to the ledger.
B)   Transactions are posted to the ledger.
C)   Adjusting entries are journalized and posted to the ledger.
D)   Financial statements are prepared.

Question 15

The end-of-period spreadsheet is a tool that accountants can use to summarize adjusting entries and the account balances for the financial statements.

Accepted Answer

A) True 
 B)False

Question 16

After net income is entered on the end-of-period spreadsheet,the Balance Sheet Debit and Credit columns must

Accepted Answer

A)   be the same amount as the total amount of the Income Statement Debit and Credit columns
B)   equal each other
C)   be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns
D)   not be equal to each other and need not be the same total amounts as any other pair of columns on the end-of-period spreadsheet

Question 17

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 18

On the income statement,miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the fixed asset accounts listed below will not have a related contra asset account?

Accepted Answer

A)   Office Equipment
B)   Land
C)   Delivery Equipment
D)   Building

Question 20

On which financial statement will Income Summary be shown?

Accepted Answer

A)   retained earnings statement
B)   balance sheet
C)   income statement
D)   no financial statement

Exam 4: Completing the Accounting Cycle

On which financial statement will Income Summary be shown?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

On March 1,a company collects revenue in advance for the next twelve months and credits a liability account.The adjusting entry at year end on the end-of-period spreadsheet would

Correct AnswerverifiedShow Answer

The end-of-period spreadsheet is a tool that accountants can use to summarize adjusting entries and the account balances for the financial statements.

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

Of the following steps of the accounting cycle,which step should be completed last?

Correct AnswerverifiedShow Answer

On the income statement,miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Correct AnswerverifiedShow Answer

Closing entries are dated in the journal as of

Correct AnswerverifiedShow Answer

After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet,the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Correct AnswerverifiedShow Answer

Journalizing and posting closing entries must be completed before financial statements can be prepared.

Correct AnswerverifiedShow Answer

A summary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end. ​ Net income for the period is

Correct AnswerverifiedShow Answer

After net income is entered on the end-of-period spreadsheet,the Balance Sheet Debit and Credit columns must

Correct AnswerverifiedShow Answer

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. ​ Prepare the entry required to close the revenue accounts at the end of the period.

Correct AnswerverifiedShow Answer

The entry to close the dividends account would be

Correct AnswerverifiedShow Answer

Of the following steps of the accounting cycle,which step should be completed first?

Correct AnswerverifiedShow Answer

Cash and other assets that may reasonably be expected to be realized in cash,sold,or consumed through the normal operations of a business,usually longer than one year,are called current assets.

Correct AnswerverifiedShow Answer

The post-closing trial balance differs from the adjusted trial balance in that it does not

Correct AnswerverifiedShow Answer

Which one of the fixed asset accounts listed below will not have a related contra asset account?

Correct AnswerverifiedShow Answer

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

Correct AnswerverifiedShow Answer

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Correct AnswerverifiedShow Answer

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A summary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end. Net income for the period is

Correct Answer
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Correct Answer
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Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. Prepare the entry required to close the revenue accounts at the end of the period.

Correct Answer
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