Question 1

A post-closing trial balance contains only asset and liability accounts.

Accepted Answer

A) True 
 B)False

Question 2

Accumulated Depreciation appears on the

Accepted Answer

A)   balance sheet in the current assets section
B)   balance sheet in the property,plant,and equipment section
C)   balance sheet in the long-term liabilities section
D)   income statement as an operating expenseE) None of the above
F) All of the above

Question 3

During the closing process,some balance sheet accounts are closed and end the period with a zero balance.

Accepted Answer

A) True 
 B)False

Question 4

After posting the second closing entry to the income summary account,the balance will be equal to

Accepted Answer

A)   zero
B)   stockholders' equity
C)   revenues for the period
D)   the net income or net loss for the periodE) None of the above
F) A) and D)

Question 5

The end-of-period spreadsheet

Accepted Answer

A)   is an integral part of the accounting cycle
B)   eliminates the need to rewrite the financial statements
C)   is a working paper that is required
D)   is used to summarize account balances and adjustments for the financial statementsE) B) and D)
F) All of the above

Question 6

The unadjusted,adjusted,and final trial balances are prepared during the accounting cycle of a period.

Accepted Answer

A) True 
 B)False

Question 7

Prior to adjustment at August 31,Salary Expense has a debit balance of $298,500.Salaries owed but not paid as of the same date total $4,200.

Accepted Answer

The answer of Prior to adjustment at August 31,Salary Expense...

Question 8

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31.
​
  Prepare the entry required to close the Dividends account at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings.Below is...

Question 9

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet,the totals of the Debit and Credit columns are $36,755 and $32,735,respectively.What is the amount of net income or net loss for the period?

Accepted Answer

A)   $4,020 net income
B)   $36,755 net loss
C)   $4,020 net loss
D)   $32,735 net incomeE) B) and C)
F) C) and D)

Question 10

After analyzing transactions,the next step would be to post the transactions in the ledger.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Accepted Answer

A) True 
 B)False

Question 13

The dividends account is closed to the income summary account.

Accepted Answer

A) True 
 B)False

Question 14

Net income appears on the end-of-period spreadsheet in the

Accepted Answer

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

Question 15

Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet?

Accepted Answer

A)   Common Stock
B)   Service Revenue
C)   Unearned Revenue
D)   CashE) A) and D)
F) B) and C)

Question 16

All companies must use a calendar year as their fiscal year.

Accepted Answer

A) True 
 B)False

Question 17

The natural business year is a

Accepted Answer

A)   fiscal year that ends when business activities are at their lowest point
B)   calendar year that ends when business activities are at their lowest point
C)   fiscal year that ends when business activities are at their highest point
D)   calendar year that ends when business activities are at their highest pointE) A) and B)
F) A) and C)

Question 18

Balance sheet accounts

Accepted Answer

A)   represent amounts accumulated during a specific period of time
B)   are called real accounts
C)   have zero balances after the closing entries have been posted
D)   are not affected by adjustmentsE) B) and C)
F) C) and D)

Question 19

Closing entries are entered directly on the end-of-period spreadsheet.

Accepted Answer

A) True 
 B)False

Question 20

Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?

Accepted Answer

A)   preparing the adjusted trial balance
B)   posting to the general ledger
C)   preparing the financial statements
D)   preparing the closing entriesE) C) and D)
F) B) and C)

Exam 4: Completing the Accounting Cycle

Prior to adjustment at August 31,Salary Expense has a debit balance of $298,500.Salaries owed but not paid as of the same date total $4,200.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All companies must use a calendar year as their fiscal year.

Correct AnswerverifiedShow Answer

The unadjusted,adjusted,and final trial balances are prepared during the accounting cycle of a period.

Correct AnswerverifiedShow Answer

The dividends account is closed to the income summary account.

Correct AnswerverifiedShow Answer

Balance sheet accounts

Correct AnswerverifiedShow Answer

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Correct AnswerverifiedShow Answer

The natural business year is a

Correct AnswerverifiedShow Answer

Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet,the totals of the Debit and Credit columns are $36,755 and $32,735,respectively.What is the amount of net income or net loss for the period?

Correct AnswerverifiedShow Answer

Accumulated Depreciation appears on the

Correct AnswerverifiedShow Answer

Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet?

Correct AnswerverifiedShow Answer

During the closing process,some balance sheet accounts are closed and end the period with a zero balance.

Correct AnswerverifiedShow Answer

After posting the second closing entry to the income summary account,the balance will be equal to

Correct AnswerverifiedShow Answer

A post-closing trial balance contains only asset and liability accounts.

Correct AnswerverifiedShow Answer

Net income appears on the end-of-period spreadsheet in the

Correct AnswerverifiedShow Answer

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. ​ Prepare the entry required to close the Dividends account at the end of the period.

Correct AnswerverifiedShow Answer

After analyzing transactions,the next step would be to post the transactions in the ledger.

Correct AnswerverifiedShow Answer

The end-of-period spreadsheet

Correct AnswerverifiedShow Answer

Closing entries are entered directly on the end-of-period spreadsheet.

Correct AnswerverifiedShow Answer

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Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. Prepare the entry required to close the Dividends account at the end of the period.

Correct Answer
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