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Study Resources (Accounting)

2.4   Learning Objective 2-4 1) Which type of account would not be reported on the income statement? A) Revenue B) Expenses C) Liabilities D) None of these answers are correct. 2) Accounts Payable would appear on which financial statement? A) Balance sheet B) Income statement C) Owner's equity statement D) None of these answers are correct. 3) The left column of.
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11) The general ledger: A) is the book of original entry. B) is the book of final entry. C) lists the transactions in chronological order. D) is before the general journal. 12) The process of initially recording business transactions in a journal is: A) sliding. B) posting. C) journalizing. D) transposing. 13) When recording a transaction in a journal, the.
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2.3   Learning Objective 2-3 1) Which of the following is not a financial statement? A) Balance sheet B) Income statement C) Statement of owner's equity D) Trial balance 2) A list of all the accounts from the ledger with their ending balances is called a: A) normal balance. B) trial balance. C) chart of accounts. D) footing. 3) Which of the.
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11) All closing entries must be posted before preparing the post-closing trial balance. 12) From the following accounts, prepare in proper form a post-closing trial balance for Logan's Pet Sitting on December 31. (Note: These balances are before closing). Logan, Capital$7,400 Cash2,000 Accumulated Depreciation1,500 Equipment5,000 Accounts Payable900 Logan, Withdrawals1,000 Wages Expense2,250 Supplies Expense775 Accounts Receivable3,125 Personal Trainer Fees4,350 13) From the following.
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51) Historical cost is the same as: A) residual value. B) original cost. C) accumulated depreciation. D) book value. 52) The accrual of an expense was not recorded. This would: A) overstate expenses and overstate liabilities. B) overstate expenses and understate liabilities. C) understate expenses and overstate liabilities. D) understate expenses and understate liabilities. 53) Depreciation of equipment was recorded.
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11) The financial statements contain debit and credit columns. 12) Withdrawals and expenses are reported on the income statement. 13) Accounts Payable appears on the income statement. 14) Wages Expense appears on the balance sheet. 15) Determine the ending owner's equity of a business having a beginning owner's equity of $9,500, additional investments of.
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11) The income statement debit column of the worksheet showed the following expenses: Supplies Expense $600 Depreciation Expense 400 Salaries Expense 300 The journal entry to close the expense accounts is: A) Income Summary 1,300 Supplies Expense 600 Depreciation Expense 400 Salaries Expense 300 B) Income Summary 1,200 Capital 1,200 C) Supplies Expense 500 Depreciation Expense 400 Salaries Expense 300 Income Summary 1,200 D) Capital 1,200 Income Summary 1,200 12) The ending balances in the ledger after posting the adjusting entries, will.
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16) The proper sequence used in recording a business transaction is: A) analyze, post, journalize, record the account balance, and complete the reference column in the journal. B) analyze, journalize, post, record the account balance, and complete the reference column in the journal. C) analyze, journalize, post, complete the reference column in the.
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5.3   Learning Objective 5-3 1) The final step in the accounting cycle is: A) preparing the post-closing trial balance. B) preparing the financial statements. C) journalizing the closing entries. D) journalizing the adjusting entries. 2) Which of the following sequence of actions describes the proper order in the accounting cycle? A) Journalize, post, close, prepare financial statements,.
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21) How do you close the expense accounts? A) Debit Capital; credit the expense accounts B) Credit Capital; debit the expense accounts C) Credit Income Summary; debit the expense accounts D) Debit Income Summary; credit the expense accounts 22) All permanent accounts can be found: A) on the Income Statement. B) on the Statement of Owner's Equity. C).
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3.1   Learning Objective 3-1 1) The process that begins with recording business transactions and includes the completion of the financial statements is the: A) calendar year. B) natural business years. C) fiscal year. D) accounting cycle. 2) The twelve-month period a business chooses for its accounting period is a(n): A) calendar year. B) accounting period. C) fiscal year. D) accounting.
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31) Samantha purchased a two-year insurance policy for $7,200. The adjusting entry for one month would include a: A) debit to Insurance Expense, $300. B) credit to Cash, $300. C) debit to Prepaid Insurance, $300. D) credit to Insurance expense, $300. 32) Sarah's Spices' accrued wages are $1,800. Which of the following is the required.
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81) From the following items in the income statement columns of the worksheet of Monaghan Company at December 31, prepare the closing entries without explanation, assuming that a $500 withdrawal was made during the period. Income Statement AccountDebitCredit Service Revenue900 Wages Expense550 Rent Expense250 Supplies Expense100 Insurance Expense50____ 950900 Net Loss____50 $950$950 82) A summary of selected ledger accounts appear below.
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4.4   Learning Objective 4-4 1) Financial statements are prepared from the: A) trial balance. B) worksheet income and balance sheet columns. C) adjusted trial balance. D) ledger. 2) Which of the financial statements is prepared first from the worksheet? A) Balance sheet B) Income statement C) Statement of owner's equity D) None of these answers are correct. 3) The ending figure.
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5.1   Learning Objective 5-1 1) Adjusting journal entries: A) need not be journalized since they appear on the worksheet. B) need not be posted if the financial statements are prepared from the worksheet. C) are not needed if closing entries are prepared. D) must be journalized and posted. 2) Journal entries that are needed in order.
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3.2   Learning Objective 3-2 1) The purpose of posting is to: A) list the transactions in chronological order in the journal. B) provide an explanation of the transaction. C) update the account balances in the ledger. D) correct a previous entry. 2) Posting is performed by transferring information from the journal to the: A) ledger. B) trial balance. C).
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4.2   Learning Objective 4-2 1) The order of the steps to prepare the worksheet are: A) prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. B) complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend.
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51) If Capital has been credited, it is likely that: A) services were provided to a cash customer. B) services were provided to a charge customer. C) the owner made an investment. D) All of these are possible 52) If Fees Earned has been credited, it is most likely that: A) services were provided. B) the owner.
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31) A calendar year is: A) any 12-month period that a business chooses for its accounting year. B) the 12-month period beginning with January. C) the period for when a interim financial statement would be completed. D) All of these answers are correct. 32) Interim statements are prepared to: A) notify management of the company's current.
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3.3   Learning Objective 3-3 1) The informal listing of the ledger accounts and their balances in the ledger to aid in providing the equality of debits and credits is the: A) journal. B) ledger. C) income statement. D) trial balance. 2) If the debit and credit totals of a trial balance are not equal, it could.
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4.3   Learning Objective 4-3 1) The capital balance amount shown in the balance sheet column of the worksheet represents: A) the beginning capital plus net income. B) the beginning capital plus net income less withdrawal. C) the beginning capital less withdrawals. D) the beginning capital plus any investments to capital that occurred during the period. 2).
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61) The Withdrawals account is closed to the Owner's Capital account. 62) Real accounts are those accounts with balances that are brought forward to the next accounting period. 63) Nominal accounts are called temporary accounts because their balances are not carried forward to the next accounting period. 64) Revenues and expenses are closed.
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31) The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n): A) addition to the balance per books. B) subtraction from the balance per books. C) addition to the balance per bank. D) subtraction from the balance per bank. 32) On a bank reconciliation, outstanding checks.
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76) Accounts Payable is an asset account that is increased on the credit side. 77) The Accounts Receivable account is increased by a debit. 78) Identify the normal balance for each of the following accounts by placing a Dr. (debit) or a Cr. (credit) in the space provided. ________ 1. Computer ________ 2. M..
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6.1   Learning Objective 6-1 1) Internal control over a company's assets should include the following policy: A) Responsibilities and duties of employees will be divided. B) All cash receipts will be deposited into the bank the same day they arrive. C) All cash payments will be made by check (except petty cash). D) All of.
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5.2   Learning Objective 5-2 1) Closing entries are prepared: A) to clear all temporary accounts to zero. B) to update the Capital balance. C) at the end of the accounting period. D) All of the above are correct. 2) Income Summary: A) is a temporary account. B) is a permanent account. C) summarizes revenue and expenses and transfers the.
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41) Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in: A) understated assets. B) overstated net income. C) overstated liabilities. D) understated capital. 42) Online Service received its telephone bill for January, but is not going to pay the bill.
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21) During the month of January, Katelyn invested $11,000 in starting her legal practice. The proper journal entry would be: A) Cash, debit $11,000; Katelyn's Capital, credit $11,000 B) Accounts Payable, debit $11,000; Cash, credit $11,000 C) Cash, debit $11,000; Revenue, credit $11,000 D) Katelyn's Capital, debit $11,000; Cash, credit $11,000 22) Which of the.
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51) The revenue accounts debited and the Income Summary account credited would be the result of: A) closing the Income Summary account—there is a net income. B) closing the Income Summary account—there is a net loss. C) closing the revenue accounts. D) closing the expense accounts. 52) When closing the Income Summary account when there.
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6.2   Learning Objective 6-2 1) The bank statement shows: A) the beginning bank balance of the cash at the start of the month. B) the checks the bank has paid and any deposits received. C) any other charges or additions to the bank balance. D) All of these answers are correct. 2) Scotch Services received a.
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71) Define and discuss a calendar year, accounting period, and fiscal year. 72) Provide an explanation for the following journal entries: a) Prepaid Rent debited, Cash credited b) Office supplies debited, Accounts Payable credited c) Cash debited, Capital credited d) Withdrawals debited, Cash credited e) Accounts Payable debited, Cash credited 73) Complete the following entries by using.
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11) Calculate, from the following information accumulated by Sandra Johnson, the adjusted cash balance at the end of April. Bank statement ending cash balance $2,000 General ledger cash balance ending 3,250 Bank monthly service charge 45 Deposits in transit 2,500 Outstanding checks 1,500 NSF check returned with bank statement 205 A) $3,000 B) $4,250 C) $4,000 D) $5,500 12) Determine the adjusted cash balance per bank for.
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21) The estimated value of an item at the end of its useful life is: A) depreciation expense. B) residual value. C) accumulated depreciation. D) None of these answers are correct. 22) Accumulated Depreciation is found on which of the following financial statements? A) Balance sheet B) Income statement C) Statement of Owner's Equity D) All of these answers.
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31) The Income Summary account shows debits of $19,000 and credits of $10,000. This results in a: A) net income of $29,000. B) net loss of $29,000. C) net income of $9,000. D) net loss of $9,000. 32) After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,000. Which of the following.
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11) The correct order for closing accounts is: A) revenue, expenses, income summary, withdrawals. B) revenue, income summary, expenses, withdrawals. C) revenue, expenses, capital, withdrawals. D) revenue, capital, expenses, withdrawals. 12) To close the Fees Earned account: A) debit Income Summary; credit Fees Earned. B) debit Fees Earned; credit Capital. C) debit Fees Earned; credit Income Summary. D) debit.
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11) If Prepaid Rent for the period is not adjusted: A) assets will be overstated and expenses will be overstated. B) assets will be overstated and expenses will be understated. C) assets will be understated and expenses will be overstated. D) assets will be understated and expenses will be understated. 12) If the Supplies account.
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4.1   Learning Objective 4-1 1) A form used to organize and check data before preparing financial reports is known as a(n): A) trial balance. B) income statement. C) balance sheet. D) worksheet. 2) Bringing account balances up to date before preparing financial reports is called: A) posting. B) adjusting. C) journalizing. D) analyzing. 3) An adjustment for Prepaid Rent would indicate: A).
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