Question 1

Which of the following accounts could appear in an adjusting entry,closing entry,and reversing entry?

Accepted Answer

A)  Accumulated Depreciation-Buildings
B)  Interest Income
C)  Salaries Payable
D)  Depreciation Expense-BuildingsE) A) and B)
F) A) and C)

Question 2

The only accounts that are closed are income statement accounts.

Accepted Answer

A) True 
 B)False

Question 3

When a company has a net loss,the net loss amount is entered on the work sheet on the

Accepted Answer

A)  credit side of both the Income Statement and the Balance Sheet columns.
B)  credit side of the Income Statement columns and the debit side of the Balance Sheet columns.
C)  debit side of the Income Statement columns and the credit side of the Balance Sheet columns.
D)  debit side of both the Income Statement and the Balance Sheet columns.E) A) and B)
F) A) and C)

Question 4

An important use of the work sheet is as a replacement for the annual financial statements.

Accepted Answer

A) True 
 B)False

Question 5

From the following items in the Income Statement columns of the work sheet of Sailors Co.at December 31,20x5,prepare the closing entries without explanations,assuming that a $100 withdrawal was made by the owner during the period.

Accepted Answer

The answer of From the following items in the Income...

Question 6

The normal account balances for owner's Capital and Withdrawals are

Accepted Answer

A)  credit and debit,respectively.
B)  debits.
C)  credits.
D)  debit and credit,respectively.E) None of the above
F) A) and B)

Question 7

The process of crossfooting on the work sheet results in the

Accepted Answer

A)  Income Statement columns.
B)  Trial Balance columns.
C)  Adjusted Trial Balance columns.
D)  Adjustments columns.E) None of the above
F) All of the above

Question 8

Reversing entries can be made for accruals,but not for deferrals.

Accepted Answer

A) True 
 B)False

Question 9

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:  The Fran Laurel,Capital balance on 1/1 was

Accepted Answer

A)  $2,000.
B)  $1,800.
C)  $2,400.
D)  $2,200.E) All of the above
F) A) and D)

Question 10

The Income Statement columns of the work sheet show all the accounts that need to be closed,except for the Withdrawals account.

Accepted Answer

A) True 
 B)False

Question 11

The adjusting entries involving Rent Receivable and Salaries Payable could be reversed.

Accepted Answer

A) True 
 B)False

Question 12

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:  The Bill Harmon,Capital balance on 1/1 was

Accepted Answer

A)  $300.
B)  $800.
C)  $700.
D)  $1,500.E) A) and B)
F) None of the above

Question 13

The adjustment dated 12/31/20x1 to accrue interest to be paid most likely would be reversed by which of the following entries?

Accepted Answer

A)  Debit Interest Payable and credit Interest Expense dated 1/1/20x2
B)  Debit Interest Expense and credit Interest Payable dated 12/31/20x1
C)  Debit Interest Payable and credit Interest Expense dated 12/31/20x1
D)  Debit Interest Expense and credit Interest Payable dated 1/1/20x2E) B) and D)
F) B) and C)

Question 14

Failure to prepare closing entries will produce a misstated

Accepted Answer

A)  total liabilities figure on the balance sheet.
B)  total assets figure on the balance sheet.
C)  owner's Capital account balance.
D)  Income Summary account balance.E) A) and C)
F) A) and B)

Question 15

The post-closing trial balance will typically have more accounts than the adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 16

Jack Stephan,a house painter,has entered into a $2,400 contract to do a paint job that will begin in 20x5 and end in 20x6.Assuming a calendar-year accounting period,prepare Jack's entries in the following journal,using the dates and explanations provided.

Accepted Answer

The answer of Jack Stephan,a house painter,has entered into a...

Question 17

The adjusting entries involving Depreciation Expense-Buildings and Supplies Expense could be reversed.

Accepted Answer

A) True 
 B)False

Question 18

The Income Summary account is credited in the entry that closes

Accepted Answer

A)  the Withdrawals account.
B)  expense accounts.
C)  net income.
D)  revenue accounts.E) C) and D)
F) A) and C)

Question 19

Which of the following accounts does not appear in the Balance Sheet columns of a work sheet?

Accepted Answer

A)  Withdrawals
B)  Unearned Revenue
C)  Wages Payable
D)  Depreciation Expense-EquipmentE) A) and D)
F) None of the above

Question 20

Which account that does not appear on the balance sheet has an amount in the Balance Sheet columns of a work sheet?

Accepted Answer

A)  Depreciation Expense-Trucks
B)  Withdrawals
C)  Accumulated Depreciation-Trucks
D)  Owner's CapitalE) A) and B)
F) A) and C)

Exam 4: Completing the Accounting Cycle

The adjusting entries involving Rent Receivable and Salaries Payable could be reversed.

Correct AnswerverifiedShow Answer

The Income Statement columns of the work sheet show all the accounts that need to be closed,except for the Withdrawals account.

Correct AnswerverifiedShow Answer

The only accounts that are closed are income statement accounts.

Correct AnswerverifiedShow Answer

Which account that does not appear on the balance sheet has an amount in the Balance Sheet columns of a work sheet?

Correct AnswerverifiedShow Answer

Which of the following accounts could appear in an adjusting entry,closing entry,and reversing entry?

Correct AnswerverifiedShow Answer

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The Fran Laurel,Capital balance on 1/1 was

Correct AnswerverifiedShow Answer

From the following items in the Income Statement columns of the work sheet of Sailors Co.at December 31,20x5,prepare the closing entries without explanations,assuming that a $100 withdrawal was made by the owner during the period.

Correct AnswerverifiedShow Answer

Reversing entries can be made for accruals,but not for deferrals.

Correct AnswerverifiedShow Answer

Failure to prepare closing entries will produce a misstated

Correct AnswerverifiedShow Answer

Which of the following accounts does not appear in the Balance Sheet columns of a work sheet?

Correct AnswerverifiedShow Answer

Jack Stephan,a house painter,has entered into a $2,400 contract to do a paint job that will begin in 20x5 and end in 20x6.Assuming a calendar-year accounting period,prepare Jack's entries in the following journal,using the dates and explanations provided.

Correct AnswerverifiedShow Answer

When a company has a net loss,the net loss amount is entered on the work sheet on the

Correct AnswerverifiedShow Answer

The normal account balances for owner's Capital and Withdrawals are

Correct AnswerverifiedShow Answer

The Income Summary account is credited in the entry that closes

Correct AnswerverifiedShow Answer

The owner's Capital,Withdrawals,and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The Bill Harmon,Capital balance on 1/1 was

Correct AnswerverifiedShow Answer

An important use of the work sheet is as a replacement for the annual financial statements.

Correct AnswerverifiedShow Answer

The post-closing trial balance will typically have more accounts than the adjusted trial balance.

Correct AnswerverifiedShow Answer

The adjustment dated 12/31/20x1 to accrue interest to be paid most likely would be reversed by which of the following entries?

Correct AnswerverifiedShow Answer

The adjusting entries involving Depreciation Expense-Buildings and Supplies Expense could be reversed.

Correct AnswerverifiedShow Answer

The process of crossfooting on the work sheet results in the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified