Question 1

A fiscal year

Accepted Answer

A)   ordinarily begins on the first day of a month and ends on the last day of the following twelfth month.
B)   for a business is determined by the federal government.
C)   always begins on January 1 and ends on December 31 of the same year.
D)   should end at the height of the business's annual operating cycle.E) All of the above
F) B) and D)

Question 2

Indicate whether each of the following would be reported in the section of financial statements identified as (a) current assets, (b) property, plant, and equipment, (c) current liabilities, (d) revenues, or (e) expenses:

Accepted Answer

The answer of Indicate whether each of the following would...

Question 3

There are four closing entries. The first one is to close ____, the second one is to close ____, the third one is to close ____, and the last one is to close ____.

Accepted Answer

A)   revenues, expenses, income summary, dividends
B)   expenses, assets, income summary, capital stock
C)   retained earnings, dividends, income summary, assets
D)   dividends, income summary, expenses, revenuesE) B) and C)
F) A) and D)

Question 4

The balance in the retained earnings account on the work sheet will equal the amount presented in the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

Accepted Answer

A)   The adjusted trial balance will show the net income (loss)  as an additional account.
B)   Both will need to be in balance in order to continue with the end-of-period processing.
C)   The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
D)   The unadjusted trial balance will be used to record the adjustments for the period.E) None of the above
F) B) and C)

Question 6

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

Accepted Answer

A)   Rent Expense
B)   Fees Earned
C)   Income Summary
D)   Depreciation ExpenseE) All of the above
F) None of the above

Question 7

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 stockholders' equity section
D)   income statement as revenueE) B) and D)
F) B) and C)

Question 8

The income summary account is also called

Accepted Answer

A)   the imprest account
B)   the clearing account
C)   the adjustments account
D)   the helpful accountE) B) and C)
F) All of the above

Question 9

The income statement is prepared from:

Accepted Answer

A)   the adjusted trial balance.
B)   the income statement columns of the work sheet.
C)   either the adjusted trial balance or the income statement columns of the work sheet.
D)   both the adjusted trial balance and the income statement columns of the work sheet.E) All of the above
F) C) and D)

Question 10

Accrued expenses are ordinarily listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 11

The closing process is sometimes referred to as closing the books.

Accepted Answer

A) True 
 B)False

Question 12

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Accepted Answer

A) True 
 B)False

Question 13

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:  Net income for the period is

Accepted Answer

A)   $1,400
B)   $9,400
C)   $14,700
D)   $8,900E) A) and B)
F) A) and C)

Question 14

On which financial statement will Income Summary be shown?

Accepted Answer

A)   retained earnings statement
B)   balance sheet
C)   income statement
D)   none of theseE) None of the above
F) B) and D)

Question 15

The last step of the accounting cycle is to prepare a post-closing trial balance.

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 after the end of the accounting period
D)   the first day of the subsequent accounting periodE) A) and B)
F) None of the above

Question 17

Land is an example of a plant asset.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not an essential part of the accounting records?

Accepted Answer

A)   journal
B)   ledger
C)   chart of accounts
D)   work sheetE) A) and B)
F) None of the above

Question 19

The entry to close the appropriate insurance account at the end of the accounting period is

Accepted Answer

A)   debit Income Summary; credit Prepaid Insurance
B)   debit Prepaid Insurance; credit Income Summary
C)   debit Insurance Expense; credit Income Summary
D)   debit Income Summary; credit Insurance ExpenseE) A) and C)
F) C) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Land is an example of a plant asset.

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The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Net income for the period is

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The income summary account is also called

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The entry to close the appropriate insurance account at the end of the accounting period is

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The income statement is prepared from:

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The last step of the accounting cycle is to prepare a post-closing trial balance.

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Any twelve-month accounting period adopted by a company is known as its fiscal year.

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The balance in the retained earnings account on the work sheet will equal the amount presented in the balance sheet.

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Unearned Fees appear on the

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There are four closing entries. The first one is to close ____, the second one is to close ____, the third one is to close ____, and the last one is to close ____.

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A fiscal year

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

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Indicate whether each of the following would be reported in the section of financial statements identified as (a) current assets, (b) property, plant, and equipment, (c) current liabilities, (d) revenues, or (e) expenses:

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Closing entries are dated in the journal as of

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Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

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Accrued expenses are ordinarily listed on the balance sheet as current assets.

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The closing process is sometimes referred to as closing the books.

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Which of the following is not an essential part of the accounting records?

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What is the major difference between the unadjusted trial balance and the adjusted trial balance?

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On which financial statement will Income Summary be shown?

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There are four closing entries. The first one is to close , the second one is to close , the third one is to close , and the last one is to close .

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