Question 1

John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. No withdrawals were made by Smith during the year. The ending balance in Smith, Capital was $100,000.

Accepted Answer

A) True 
 B)False

Question 2

The Service Revenue account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following accounts would appear in the balance sheet credit column?

Accepted Answer

A)  Prepaid Insurance
B)  Buildings
C)  Unearned Service Revenue
D)  Service RevenueE) B) and C)
F) A) and D)

Question 4

The following contains information from the records of the Wellborn Engineers and Architects.   Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

Accepted Answer

A)  The company has $2.32 of current assets for every $1.00 of liabilities.
B)  The company has $1.68 of current assets for every $1.00 of current liabilities.
C)  The company has $1.58 of current assets for every $1.00 of liabilities.
D)  The company has $0.59 of current assets for every $1.00 of current liabilities.E) B) and C)
F) None of the above

Question 5

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography:  Provide the closing entry for Service Revenue.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 6

A list of the accounts and their balances at the end of the period after journalizing and posting the closing entries which includes only permanent accounts is called:

Accepted Answer

A)  chart of accounts.
B)  adjusted trial balance.
C)  post-closing trial balance.
D)  pre-closing balance sheet.E) B) and C)
F) A) and B)

Question 7

Closing journal entries are posted:

Accepted Answer

A)  throughout the accounting period.
B)  before posting the adjusting entries.
C)  after preparing the post closing trial balance.
D)  after preparing the financial statements.E) A) and B)
F) None of the above

Question 8

The Interest Expense in the worksheet's unadjusted trial balance column is $3,000. Interest Expense in the income statement column is $7,000. Which of the following entries would have caused this difference?

Accepted Answer

A)  A $7,000 credit to Interest Expense in the worksheet's adjustments column
B)  A $7,000 credit to Interest Payable in the worksheet's adjustments column
C)  A $4,000 debit to Interest Expense in the worksheet's adjustments column
D)  A $4,000 credit to Interest Expense in the worksheet's adjustments columnE) None of the above
F) A) and B)

Question 9

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography:  Provide the closing entry for expenses.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 10

The balances of select accounts of Sandra Company as at December 31, 2015 are given below:  What are the total long-term assets that would be shown on the balance sheet?

Accepted Answer

A)  $120,000
B)  $152,200
C)  $155,000
D)  $158,000E) A) and B)
F) A) and C)

Question 11

Which of the following is a plant asset?

Accepted Answer

A)  Equipment
B)  Patents
C)  Trademark
D)  Accounts ReceivableE) All of the above
F) C) and D)

Question 12

Which of the following would be considered a long-term asset?

Accepted Answer

A)  Accounts Payable
B)  Land
C)  Cash
D)  Owner's Name, CapitalE) A) and D)
F) C) and D) B

Question 13

Patents, copyrights, and trademarks are examples of:

Accepted Answer

A)  short-term investments.
B)  fixed assets.
C)  long-term investments.
D)  intangible assets.E) None of the above
F) C) and D)

Question 14

Which of the following statements is an accurate interpretation of the current ratio?

Accepted Answer

A)  A current ratio of 1.5 or higher is considered a high-risk ratio.
B)  A current ratio below 1.00 is considered a good and safe ratio.
C)  A current ratio of 2.0 indicates strong ability to pay current liabilities.
D)  A current ratio of 0.60 or lower is a good and safe ratio.E) B) and C)
F) A) and B)

Question 15

The Salaries Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following accounts will be included in a post-closing trial balance?

Accepted Answer

A)  Accumulated Depreciation-Building
B)  Rent Expense
C)  Interest Expense
D)  Service RevenueE) All of the above
F) B) and D) A

Question 17

The assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

Accepted Answer

A)  intangible
B)  plant
C)  long-term
D)  currentE) All of the above
F) B) and D) D

Question 18

Where does Net Income appear on a worksheet?

Accepted Answer

A)  Net income appears only in the income statement debit column.
B)  Net income appears in the balance sheet credit column and in the income statement debit column.
C)  Net income appears in the income statement credit column and in the balance sheet debit column.
D)  Net income appears only in the balance sheet credit column.E) A) and B)
F) A) and D)

Question 19

Which of the following accounts will be closed by debiting the Income Summary account?

Accepted Answer

A)  Owner's Name, Capital
B)  Service Revenue
C)  Accounts Receivable
D)  Salaries ExpenseE) None of the above
F) C) and D)

Question 20

The steps of the accounting cycle are followed throughout the accounting period.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. No withdrawals were made by Smith during the year. The ending balance in Smith, Capital was $100,000.

Correct AnswerverifiedShow Answer

The Service Revenue account is a temporary account.

Correct AnswerverifiedShow Answer

Which of the following accounts would appear in the balance sheet credit column?

Correct AnswerverifiedShow Answer

The following contains information from the records of the Wellborn Engineers and Architects. Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

Correct AnswerverifiedShow Answer

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: Provide the closing entry for Service Revenue.

Correct AnswerverifiedShow Answer

A list of the accounts and their balances at the end of the period after journalizing and posting the closing entries which includes only permanent accounts is called:

Correct AnswerverifiedShow Answer

Closing journal entries are posted:

Correct AnswerverifiedShow Answer

The Interest Expense in the worksheet's unadjusted trial balance column is $3,000. Interest Expense in the income statement column is $7,000. Which of the following entries would have caused this difference?

Correct AnswerverifiedShow Answer

The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: Provide the closing entry for expenses.

Correct AnswerverifiedShow Answer

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: What are the total long-term assets that would be shown on the balance sheet?

Correct AnswerverifiedShow Answer

Which of the following is a plant asset?

Correct AnswerverifiedShow Answer

Which of the following would be considered a long-term asset?

Correct AnswerverifiedB

Patents, copyrights, and trademarks are examples of:

Correct AnswerverifiedShow Answer

Which of the following statements is an accurate interpretation of the current ratio?

Correct AnswerverifiedShow Answer

The Salaries Expense account is a temporary account.

Correct AnswerverifiedShow Answer

Which of the following accounts will be included in a post-closing trial balance?

Correct AnswerverifiedA

The assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year are called ________ assets.

Correct AnswerverifiedD

Where does Net Income appear on a worksheet?

Correct AnswerverifiedShow Answer

Which of the following accounts will be closed by debiting the Income Summary account?

Correct AnswerverifiedShow Answer

The steps of the accounting cycle are followed throughout the accounting period.

Correct AnswerverifiedShow Answer

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B

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A

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D

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