Question 1

In the table below, indicate with an "X" in the proper column whether the account is a temporary (nominal) account or a permanent (real) account.

Accepted Answer

The answer of In the table below, indicate with an...

Question 2

The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?

Accepted Answer

A)   $65,000.
B)   $80,000.
C)   $130,000.
D)   $145,000.
E)   $280,000.F) A) and B)
G) A) and C)

Question 3

A work sheet is a tool to help organize information needed in adjusting the accounts and preparing the financial statements.

Accepted Answer

A) True 
 B)False

Question 4

A trial balance prepared after the closing entries have been journalized and posted is the:

Accepted Answer

A)   Unadjusted trial balance.
B)   Post-closing trial balance.
C)   General ledger.
D)   Adjusted trial balance.
E)   Work sheet.F) None of the above
G) A) and C)

Question 5

The current portion of long-term debt is classified with the ________________________.

Accepted Answer

The answer of The current portion of long-term debt is...

Question 6

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

Accepted Answer

A) True 
 B)False

Question 7

Explain the purpose of reversing entries.

Accepted Answer

Reversing entries are an optional step i...

Question 8

Employees of Artworld Co. have earned but have not been paid $3,500 in salaries for the last week of the current calendar year.
(a) Prepare the necessary adjusting journal entry(ies) for Artworld at December 31 of the current year.
(b) Assuming that Artworld makes reversing entries, prepare the necessary reversing entry. Include the appropriate date for the reversing entry(ies).

Accepted Answer

The answer of Employees of Artworld Co. have earned but...

Question 9

The calendar year-end adjusted trial balance for Acosta Co. follows:
Required:
(a) Prepare a classified year-end balance sheet. (Note: A $7,000 installment on the long-term note payable is due within one year.)
(b) Calculate the current ratio. Comment on the ability of Acosta Co. to meets its short-term debts.

Accepted Answer

(a)

*NI = $370,800 - $90,000 - $5,200 ...

Question 10

A current ratio of 2.1 suggests that a company has ____________ current assets to cover current liabilities.

Accepted Answer

The answer of A current ratio of 2.1 suggests that...

Question 11

The purpose of reversing entries is to:

Accepted Answer

A)   simplify the recording of certain journal entries in the future.
B)   correct an error made in a previous journal entry.
C)   ensure that closing entries have been properly posted to the ledger accounts.
D)   make certain that only permanent accounts are carried forward into the next accounting period.
E)   complete a required step in the accounting cycle.F) A) and B)
G) B) and C)

Question 12

The Income Summary account is used:

Accepted Answer

A)   To adjust and update asset and liability accounts.
B)   To close the revenue and expense accounts.
C)   To determine the appropriate withdrawal amount.
D)   To replace the income statement under certain circumstances.
E)   To replace the capital account in some businesses.F) All of the above
G) A) and E)

Question 13

What is the purpose of a post-closing trial balance?

Accepted Answer

A post-closing trial balance is a list o...

Question 14

Two common subgroups for liabilities on a classified balance sheet are:

Accepted Answer

A)   current liabilities and intangible liabilities.
B)   present liabilities and operating liabilities.
C)   general liabilities and specific liabilities.
D)   intangible liabilities and long-term liabilities.
E)   current liabilities and long-term liabilities.F) A) and B)
G) C) and E)

Question 15

A company had revenues of $187,000 and expenses of $109,000 for the accounting period. The owner withdrew $37,000 during the year. Which of the following entries could not be a closing entry?

Accepted Answer

A)   Debit Income Summary $78,000; credit Owner's, Capital $78,000.
B)   Debit Capital $37,000; credit Withdrawals $37,000.
C)   Debit Revenues $187,000; credit Income Summary $187,000.
D)   Debit Income Summary $109,000, credit Expenses $109,000.
E)   Debit Income Summary $187,000; credit Revenues $187,000.F) A) and B)
G) A) and C)

Question 16

The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries.

Accepted Answer

The answer of The summary amounts below appear in the...

Question 17

Harry's Bikes' current ratio is 1.3. The industry average for the current ratio is 1.2. This indicates that Harry's Bikes can cover its short term liabilities with its short term assets.

Accepted Answer

A) True 
 B)False

Question 18

A classified balance sheet differs from an unclassified balance sheet in that

Accepted Answer

A)   an unclassified balance sheet is never used by large companies.
B)   a classified balance sheet normally includes only three subgroups.
C)   a classified balance sheet presents information in a manner that makes it easier to calculate a company's current ratio.
D)   a classified balance sheet will include more accounts than an unclassified balance sheet for the same company on the same date.
E)   a classified balance sheet cannot be provided to outside parties.F) B) and D)
G) A) and B)

Question 19

Accumulated Depreciation, Accounts Receivable, and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Accepted Answer

A)   Balance Sheet and Statement of Changes in Equity-Credit; Balance Sheet and Statement of Changes in Equity Debit; and Income Statement-Credit.
B)   Balance Sheet and Statement of Changes in Equity-Debit; Balance Sheet and Statement of Changes in Equity-Credit; and Income Statement-Credit.
C)   Income Statement-Debit; Balance Sheet and Statement of Changes in Equity-Debit; and Income Statement-Credit.
D)   Income Statement-Debit; Income Statement-Debit; and Balance Sheet and Statement of Changes in Equity-Credit.
E)   Balance Sheet and Statement of Changes in Equity-Credit; Income Statement-Debit; and Income Statement-Credit.F) B) and E)
G) A) and C)

Question 20

All of the following statements regarding a work sheet are except:

Accepted Answer

A)   A worksheet aids in the preparation of financial statements.
B)   A worksheet reduces the possibility of errors when working with many accounts and adjustments.
C)   A worksheet does not assist in planning and organizing an audit of financial statements.
D)   A worksheet helps in preparing interim financial statements.
E)   A worksheet shows the effects of proposed or "what-if" transactions.F) All of the above
G) None of the above

Exam 4: Completing the Accounting Cycle

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

Correct Answer
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The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries.

Correct Answer
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Correct Answer
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A current ratio of 2.1 suggests that a company has ____________ current assets to cover current liabilities.

Correct Answer
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Correct Answer
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(a)
*NI = $370,800 - $90,000 - $5,200 ...
View Answer

A work sheet is a tool to help organize information needed in adjusting the accounts and preparing the financial statements.

Correct Answer
verified

In the table below, indicate with an "X" in the proper column whether the account is a temporary (nominal) account or a permanent (real) account.

Correct Answer
verified

A company had revenues of $187,000 and expenses of $109,000 for the accounting period. The owner withdrew $37,000 during the year. Which of the following entries could not be a closing entry?

Correct Answer
verified

Explain the purpose of reversing entries.

Correct Answer
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Reversing entries are an optional step i...
View Answer

All of the following statements regarding a work sheet are except:

Correct Answer
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The current portion of long-term debt is classified with the ________________________.

Correct Answer
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A trial balance prepared after the closing entries have been journalized and posted is the:

Correct Answer
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The purpose of reversing entries is to:

Correct Answer
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The Income Summary account is used:

Correct Answer
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What is the purpose of a post-closing trial balance?

Correct Answer
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A post-closing trial balance is a list o...
View Answer

A classified balance sheet differs from an unclassified balance sheet in that

Correct Answer
verified

The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?

Correct Answer
verified

Accumulated Depreciation, Accounts Receivable, and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Correct Answer
verified

Harry's Bikes' current ratio is 1.3. The industry average for the current ratio is 1.2. This indicates that Harry's Bikes can cover its short term liabilities with its short term assets.

Correct Answer
verified

Two common subgroups for liabilities on a classified balance sheet are:

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.

Correct AnswerverifiedShow Answer

The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A current ratio of 2.1 suggests that a company has ____________ current assets to cover current liabilities.

Correct AnswerverifiedShow Answer

Correct Answerverified(a) *NI = $370,800 - $90,000 - $5,200 ...View AnswerShow Answer

A work sheet is a tool to help organize information needed in adjusting the accounts and preparing the financial statements.

Correct AnswerverifiedShow Answer

In the table below, indicate with an "X" in the proper column whether the account is a temporary (nominal) account or a permanent (real) account.

Correct AnswerverifiedShow Answer

A company had revenues of $187,000 and expenses of $109,000 for the accounting period. The owner withdrew $37,000 during the year. Which of the following entries could not be a closing entry?

Correct AnswerverifiedShow Answer

Explain the purpose of reversing entries.

Correct AnswerverifiedReversing entries are an optional step i...View AnswerShow Answer

All of the following statements regarding a work sheet are except:

Correct AnswerverifiedShow Answer

The current portion of long-term debt is classified with the ________________________.

Correct AnswerverifiedShow Answer

A trial balance prepared after the closing entries have been journalized and posted is the:

Correct AnswerverifiedShow Answer

The purpose of reversing entries is to:

Correct AnswerverifiedShow Answer

The Income Summary account is used:

Correct AnswerverifiedShow Answer

What is the purpose of a post-closing trial balance?

Correct AnswerverifiedA post-closing trial balance is a list o...View AnswerShow Answer

A classified balance sheet differs from an unclassified balance sheet in that

Correct AnswerverifiedShow Answer

The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account?

Correct AnswerverifiedShow Answer

Accumulated Depreciation, Accounts Receivable, and Service Fees Earned would be sorted to which respective columns in completing a work sheet?

Correct AnswerverifiedShow Answer

Harry's Bikes' current ratio is 1.3. The industry average for the current ratio is 1.2. This indicates that Harry's Bikes can cover its short term liabilities with its short term assets.

Correct AnswerverifiedShow Answer

Two common subgroups for liabilities on a classified balance sheet are:

Correct AnswerverifiedShow 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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Correct Answer
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(a)
*NI = $370,800 - $90,000 - $5,200 ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Reversing entries are an optional step i...
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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Correct Answer
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Correct Answer
verified
A post-closing trial balance is a list o...
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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Correct Answer
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