Question 1

The natural business year

Accepted Answer

A)   is a fiscal year that ends when business activities are at its lowest point.
B)   is a calendar year that ends when business activities are at its lowest point.
C)   is a fiscal year that ends when business activities are at its highest point.
D)   is a calendar year that ends when business activities are at its highest point.E) A) and D)
F) A) and C)

Question 2

Owner's 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 liabilitiesE) C) and D)
F) None of the above

Question 3

The majority of businesses end their fiscal year on December 31.

Accepted Answer

A) True 
 B)False

Question 4

Which of the accounts below would be closed by posting a debit to the account?

Accepted Answer

A)   Unearned Revenue
B)   Fees Earned
C)   Josh Morton, Drawing
D)   Miscellaneous ExpenseE) None of the above
F) B) and C)

Question 5

Closing entries

Accepted Answer

A)   need not be journalized if adjusting entries are prepared
B)   need not be posted if the financial statements are prepared from the work sheet
C)   are not needed if adjusting entries are prepared
D)   must be journalized and postedE) A) and B)
F) A) and C)

Question 6

The following are steps to the accounting cycle. Of the following, which step should be done 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.E) All of the above
F) B) and C)

Question 7

During the end-of-period processing which of the following best describes the logical order of this process

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, postingE) A) and B)
F) B) and D)

Question 8

The classified Balance Sheet will subsection the assets section as follows

Accepted Answer

A)   Current Assets and Other Assets
B)   Current Assets and Property, Plant, and Equipment
C)   Current Assets and Short-Term Assets
D)   Other Assets and Property, Plant and EquipmentE) B) and C)
F) A) and D)

Question 9

The balance sheet accounts are referred to as real or permanent accounts.

Accepted Answer

A) True 
 B)False

Question 10

Cross-referencing is useful in assuring that the debits and credits are in balance.

Accepted Answer

A) True 
 B)False

Question 11

The Statement of Owner's Equity should be prepared

Accepted Answer

A)   before the income statement and after the balance sheet
B)   before the income statement and balance sheet
C)   after the income statement and balance sheet
D)   after the income statement and before the balance sheetE) C) and D)
F) A) and D)

Question 12

The work sheet at the end of July has $5,950 in the Balance Sheet credit column for Accumulated Depreciation. The work sheet at the end of August has $7,600 in the Balance Sheet credit column for Accumulated Depreciation. What was the amount of the depreciation expense adjustment for the month of August?

Accepted Answer

A)   amount can not be determined
B)   $7,600
C)   $5,950
D)   $1,650E) All of the above
F) None of the above

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Selected ledger accounts appear below for Fulton Surveying Services for 2014.
   Prepare a statement of owner's equity.

Accepted Answer

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Question 15

A net loss appears on the work sheet in the

Accepted Answer

A)   debit column of the Balance Sheet columns
B)   credit column of the Balance Sheet columns
C)   debit column of the Income Statement columns
D)   credit column of the Adjustments columnsE) A) and C)
F) C) and D)

Question 16

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Accepted Answer

A)   Post-closing, unadjusted, adjusted
B)   Unadjusted, post-closing, adjusted
C)   Unadjusted, adjusted, post-closing
D)   Post-closing, adjusted, unadjustedE) A) and B)
F) A) and C)

Question 17

Balance Sheet accounts are considered real accounts.

Accepted Answer

A) True 
 B)False

Question 18

In a computerized accounting system, a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Accepted Answer

A) True 
 B)False

Question 19

Match between columns
                        Premises: Fees earned
Automobile
Salaries payable
Advertising expense
Accumulated depreciation
Prepaid rent
Rent expense
Unearned rent
Store supplies

Accepted Answer

The Answer of property, plant, and equipment and revenue and is...

Question 20

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

In a computerized accounting system, a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Correct Answer
verified

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

Correct Answer
verified

During the end-of-period processing which of the following best describes the logical order of this process

Correct Answer
verified

Correct Answer
verified

Owner's Equity is

Correct Answer
verified

The following are steps to the accounting cycle. Of the following, which step should be done first?

Correct Answer
verified

The Statement of Owner's Equity should be prepared

Correct Answer
verified

Cross-referencing is useful in assuring that the debits and credits are in balance.

Correct Answer
verified

The natural business year

Correct Answer
verified

The balance sheet accounts are referred to as real or permanent accounts.

Correct Answer
verified

Balance Sheet accounts are considered real accounts.

Correct Answer
verified

Select whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

Closing entries

Correct Answer
verified

The classified Balance Sheet will subsection the assets section as follows

Correct Answer
verified

A net loss appears on the work sheet in the

Correct Answer
verified

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Correct Answer
verified

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

Correct Answer
verified

Which of the accounts below would be closed by posting a debit to the account?

Correct Answer
verified

Selected ledger accounts appear below for Fulton Surveying Services for 2014. Prepare a statement of owner's equity.

Correct Answer
verified
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View Answer

The majority of businesses end their fiscal year on December 31.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

In a computerized accounting system, a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Correct AnswerverifiedShow Answer

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

Correct AnswerverifiedShow Answer

During the end-of-period processing which of the following best describes the logical order of this process

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Owner's Equity is

Correct AnswerverifiedShow Answer

The following are steps to the accounting cycle. Of the following, which step should be done first?

Correct AnswerverifiedShow Answer

The Statement of Owner's Equity should be prepared

Correct AnswerverifiedShow Answer

Cross-referencing is useful in assuring that the debits and credits are in balance.

Correct AnswerverifiedShow Answer

The natural business year

Correct AnswerverifiedShow Answer

The balance sheet accounts are referred to as real or permanent accounts.

Correct AnswerverifiedShow Answer

Balance Sheet accounts are considered real accounts.

Correct AnswerverifiedShow Answer

Select whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

Closing entries

Correct AnswerverifiedShow Answer

The classified Balance Sheet will subsection the assets section as follows

Correct AnswerverifiedShow Answer

A net loss appears on the work sheet in the

Correct AnswerverifiedShow Answer

The accounting cycle requires three trial balances be done. In what order should they be prepared?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the accounts below would be closed by posting a debit to the account?

Correct AnswerverifiedShow Answer

Selected ledger accounts appear below for Fulton Surveying Services for 2014. Prepare a statement of owner's equity.

Correct Answerverified_TB2085_00...View AnswerShow Answer

The majority of businesses end their fiscal year on December 31.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
_TB2085_00...
View Answer

Correct Answer
verified