Question 1

Which of the following are classified as current assets?

Accepted Answer

A)  Office equipment.
B)  Patent.
C)  Unearned revenue.
D)  Office supplies.
E)  Land.F) A) and B)
G) B) and E)

Question 2

At the beginning of the year,a company's balance sheet reported the following balances: Total Assets = $225,000;Total Liabilities = $125,000;and Owner's Capital = $100,000.During the year,the company reported revenues of $46,000 and expenses of $30,000.In addition,owner's withdrawals for the year totaled $20,000.Assuming no other changes to owner's capital,the balance in the owner's capital account at the end of the year would be:

Accepted Answer

A)  $116,000.
B)  $136,000.
C)  $24,000.
D)  $96,000.
E)  $104,000.F) C) and D)
G) D) and E)

Question 3

Reversing entries:

Accepted Answer

A)  Are optional.
B)  Are mandatory.
C)  Correct errors in journal entries.
D)  Are required by GAAP.
E)  Are prepared on the worksheet.F) A) and B)
G) C) and E)

Question 4

Jen Rogers withdrew a total of $35,000 from her business during the current year.The entry needed to close the withdrawals account is:

Accepted Answer

A)  Debit Income Summary and credit Cash for $35,000.
B)  Debit Jen Rogers,Withdrawals and credit Cash for $35,000.
C)  Debit Income Summary and credit Jen Rogers,Withdrawals for $35,000.
D)  Debit Jen Rogers,Capital and credit Jen Rogers,Withdrawals for $35,000.
E)  Debit Jen Rogers,Withdrawals and credit Jen Rogers,Capital for $35,000.F) All of the above
G) None of the above

Question 5

A number of accounts are listed below.Use the table to classify each account by indicating whether it is a temporary or permanent account,whether it is included in the Income Statement or Balance sheet,and if it is closed at the end of the accounting period,and,if so,whether it is closed with a debit or credit.The first one is done as an example.

Accepted Answer

The answer of A number of accounts are listed below.Use...

Question 6

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 groups items into the broad categories of asset,liability,and equity.
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 is not usually provided to outside parties.F) A) and D)
G) C) and E)

Question 7

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

Accepted Answer

A)  all revenue and expense accounts have zero balances.
B)  the owner's capital account is debited for the amount of the net loss for the period.
C)  the income summary account is debited for the amount of net income for the period.
D)  all balance sheet accounts have zero balances.
E)  only permanent accounts appear on the post-closing trial balance.F) None of the above
G) A) and C)

Question 8

Employees of Potteryworld 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 for Potteryworld at December 31 of the current year.
(b)Assuming that Potteryworld makes reversing entries,prepare the necessary reversing entry,including the appropriate date.

Accepted Answer

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

Question 9

All of the following regarding the current ratio are true except:

Accepted Answer

A)  Current ratio is calculated by dividing current assets by current liabilities.
B)  Current ratio helps to assess a company's ability to pay its debts in the near future.
C)  Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit.
D)  Current ratio can affect a creditor's decision about whether to lend money to a company.
E)  Current ratio can reveal challenges in covering short-term obligations if it is less than 1.F) B) and D)
G) A) and E)

Question 10

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 "X"...

Question 11

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company:

Accepted Answer

A)  1.87.
B)  .54.
C)  3.92.
D)  1.77.
E)  1.60.F) A) and B)
G) B) and C)

Question 12

Which of the following statements about a company's operating cycle is not true:

Accepted Answer

A)  Non-current items are those expected to come due within one year or the company's operating cycle.
B)  The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.
C)  The length of a company's operating cycle depends on its activities.
D)  For a merchandiser selling products,the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
E)  Most operating cycles are less than one year.F) A) and D)
G) C) and D)

Question 13

The following information is available for the Harris Vacation Rental Agency.After these closing entries what will be the balance in the Sue Harris,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 14

Based on the following information from Schrute Company's balance sheet,calculate the current ratio.

Accepted Answer

A)  .44.
B)  3.51.
C)  3.33.
D)  1.06.
E)  2.23.F) A) and D)
G) C) and D)

Question 15

An optional columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements is a(n) :

Accepted Answer

A)  Adjusted trial balance.
B)  Work sheet.
C)  Post-closing trial balance.
D)  Unadjusted trial balance.
E)  General ledger.F) B) and E)
G) C) and D)

Question 16

The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750.The Adjustments columns shows a credit of $425 for supplies used during the period.The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:

Accepted Answer

A)  $325 debit.
B)  $325 credit.
C)  $425 debit.
D)  $750 debit.
E)  $425 credit.F) A) and C)
G) B) and C)

Question 17

For the year ended December 31,a company had revenues of $187,000 and expenses of $109,000.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 Owner's Capital $37,000;credit Owner 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 C)
G) A) and D)

Question 18

The adjusted trial balance of the Waterstone Company follows:  Prepare the closing entries for Waterstone Company.

Accepted Answer

The answer of The adjusted trial balance of the Waterstone...

Question 19

The following information is available for Zephyr Company before closing the accounts.After all of the closing entries are made,what will be the balance in the Zephyr,Capital account?

Accepted Answer

A)  $115,000.
B)  $225,000.
C)  $264,000.
D)  $186,000.
E)  $956,000.F) A) and B)
G) A) and C)

Question 20

A company's December 31 work sheet for the current period appears below.Based on the information provided,what is net income for the current period?

Accepted Answer

A)  $1,400.
B)  $1,855.
C)  $1,905.
D)  $2,060.
E)  $4,670.F) B) and E)
G) A) and B)

Exam 4: Completing the Accounting Cycle

The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750.The Adjustments columns shows a credit of $425 for supplies used during the period.The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:

Correct Answer
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Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company:

Correct Answer
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Jen Rogers withdrew a total of $35,000 from her business during the current year.The entry needed to close the withdrawals account is:

Correct Answer
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Which of the following statements about a company's operating cycle is not true:

Correct Answer
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A company's December 31 work sheet for the current period appears below.Based on the information provided,what is net income for the current period?

Correct Answer
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An optional columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements is a(n) :

Correct Answer
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Based on the following information from Schrute Company's balance sheet,calculate the current ratio.

Correct Answer
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The following information is available for the Harris Vacation Rental Agency.After these closing entries what will be the balance in the Sue Harris,Capital account?

Correct Answer
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Reversing entries:

Correct Answer
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For the year ended December 31,a company had revenues of $187,000 and expenses of $109,000.The owner withdrew $37,000 during the year.Which of the following entries could not be a closing entry?

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

Correct Answer
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The following information is available for Zephyr Company before closing the accounts.After all of the closing entries are made,what will be the balance in the Zephyr,Capital account?

Correct Answer
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It is obvious that an error occurred in the preparation and/or posting of closing entries if:

Correct Answer
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All of the following regarding the current ratio are true except:

Correct Answer
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Which of the following are classified as current assets?

Correct Answer
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The adjusted trial balance of the Waterstone Company follows: Prepare the closing entries for Waterstone Company.

Correct Answer
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Exam 4: Completing the Accounting Cycle

The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750.The Adjustments columns shows a credit of $425 for supplies used during the period.The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:

Correct AnswerverifiedShow Answer

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company:

Correct AnswerverifiedShow Answer

Jen Rogers withdrew a total of $35,000 from her business during the current year.The entry needed to close the withdrawals account is:

Correct AnswerverifiedShow Answer

Which of the following statements about a company's operating cycle is not true:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company's December 31 work sheet for the current period appears below.Based on the information provided,what is net income for the current period?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An optional columnar working paper used to prepare a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements is a(n) :

Correct AnswerverifiedShow Answer

Based on the following information from Schrute Company's balance sheet,calculate the current ratio.

Correct AnswerverifiedShow Answer

The following information is available for the Harris Vacation Rental Agency.After these closing entries what will be the balance in the Sue Harris,Capital account?

Correct AnswerverifiedShow Answer

Reversing entries:

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For the year ended December 31,a company had revenues of $187,000 and expenses of $109,000.The owner withdrew $37,000 during the year.Which of the following entries could not be a closing entry?

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 classified balance sheet differs from an unclassified balance sheet in that

Correct AnswerverifiedShow Answer

The following information is available for Zephyr Company before closing the accounts.After all of the closing entries are made,what will be the balance in the Zephyr,Capital account?

Correct AnswerverifiedShow Answer

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

Correct AnswerverifiedShow Answer

All of the following regarding the current ratio are true except:

Correct AnswerverifiedShow Answer

Which of the following are classified as current assets?

Correct AnswerverifiedShow Answer

The adjusted trial balance of the Waterstone Company follows: Prepare the closing entries for Waterstone Company.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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