Question 1

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 2

An unacceptable way to make a correcting entry is to

Accepted Answer

A)   reverse the incorrect entry.
B)   erase the incorrect entry.
C)   compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts.
D)   correct it immediately upon discovery.E) A) and B)
F) None of the above

Question 3

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly)  is

Accepted Answer

A)   analyzing transactions.
B)   journalizing and posting adjusting entries.
C)   preparing a post-closing trial balance.
D)   posting to ledger accounts.E) A) and D)
F) None of the above

Question 4

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Accepted Answer

A) True 
 B)False

Question 5

The preparation of a ______________ and ______________ entries are two optional steps in the accounting cycle.

Accepted Answer

worksheet,...

Question 6

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

Accepted Answer

The answer of The first step in preparing a worksheet...

Question 7

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018:  The sub-classifications for assets on the company's classified balance sheet would include all of the following except

Accepted Answer

A)   Current Assets.
B)   Property, Plant, and Equipment.
C)   Intangible Assets.
D)   Long-term Assets.E) All of the above
F) C) and D)

Question 8

The Income Summary account is an important account that is used

Accepted Answer

A)   during interim periods.
B)   in preparing adjusting entries.
C)   annually in preparing closing entries.
D)   annually in preparing correcting entries.E) C) and D)
F) None of the above

Question 9

Under IFRS

Accepted Answer

A)   companies can apply fair value to property, plant, and equipment and natural resources.
B)   companies can apply fair value to property, plant, and equipment but not to natural resources.
C)   companies can apply fair value to neither property, plant, and equipment nor natural resources.
D)   companies can apply fair value to natural resources but not to property, plant, and equipment.IFRS.E) None of the above
F) A) and D)

Question 10

The operating cycle of a company is determined by the number of years the company has been operating.

Accepted Answer

A) True 
 B)False

Question 11

A post-closing trial balance will show

Accepted Answer

A)   only permanent account balances.
B)   only temporary account balances.
C)   zero balances for all accounts.
D)   the amount of net income (or loss)  for the period.E) C) and D)
F) A) and D)

Question 12

A worksheet can be thought of as a(n)

Accepted Answer

A)   permanent accounting record.
B)   optional device used by accountants.
C)   part of the general ledger.
D)   part of the journal.E) B) and C)
F) All of the above

Question 13

A company's operating cycle and fiscal year are usually the same length of time.

Accepted Answer

A) True 
 B)False

Question 14

The IASB and FASB are working on a converged statement of financial position using the headings of

Accepted Answer

A)   assets, liabilities, and equity.
B)   revenues and expenses.
C)   assets, liabilities, revenues, expenses and equity.
D)   operating, investing, and financing.IFRS.E) C) and D)
F) B) and C)

Question 15

The adjustments columns of the worksheet for Mandy Company are shown below.
Instructions
(a) Prepare the adjusting entries.
(b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

Accepted Answer

The answer of The adjustments columns of the worksheet for...

Question 16

The worksheet for Montoya Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should be extended by placing a check mark () in the appropriate column.

Accepted Answer

The answer of The worksheet for Montoya Company has been...

Question 17

Closing entries

Accepted Answer

A)   are prepared before the financial statements.
B)   reduce the number of permanent accounts.
C)   cause the revenue and expense accounts to have zero balances.
D)   summarize the activity in every account.E) B) and D)
F) All of the above

Question 18

All of the following statements about the post-closing trial balance are correct except it

Accepted Answer

A)   shows that the accounting equation is in balance.
B)   provides evidence that the journalizing and posting of closing entries have been properly completed.
C)   contains only permanent accounts.
D)   proves that all transactions have been recorded.E) B) and C)
F) A) and C)

Question 19

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

Accepted Answer

A) True 
 B)False

Question 20

Correcting entries

Accepted Answer

A)   always affect at least one balance sheet account and one income statement account.
B)   affect income statement accounts only.
C)   affect balance sheet accounts only.
D)   may involve any combination of accounts in need of correction.E) B) and C)
F) A) and D)

Exam 4: Completing the Accounting Cycle

An unacceptable way to make a correcting entry is to

Correct Answer
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A worksheet can be thought of as a(n)

Correct Answer
verified

All of the following statements about the post-closing trial balance are correct except it

Correct Answer
verified

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Correct Answer
verified

A post-closing trial balance will show

Correct Answer
verified

The operating cycle of a company is determined by the number of years the company has been operating.

Correct Answer
verified

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Correct Answer
verified

The adjustments columns of the worksheet for Mandy Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

Correct Answer
verified

Correct Answer
verified

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

Correct Answer
verified

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Correct Answer
verified

The Income Summary account is an important account that is used

Correct Answer
verified

Correcting entries

Correct Answer
verified

The preparation of a and entries are two optional steps in the accounting cycle.

Correct Answer
verified
worksheet,...
View Answer

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: The sub-classifications for assets on the company's classified balance sheet would include all of the following except

Correct Answer
verified

The IASB and FASB are working on a converged statement of financial position using the headings of

Correct Answer
verified

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

Correct Answer
verified

A company's operating cycle and fiscal year are usually the same length of time.

Correct Answer
verified

Under IFRS

Correct Answer
verified

Closing entries

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

An unacceptable way to make a correcting entry is to

Correct AnswerverifiedShow Answer

A worksheet can be thought of as a(n)

Correct AnswerverifiedShow Answer

All of the following statements about the post-closing trial balance are correct except it

Correct AnswerverifiedShow Answer

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Correct AnswerverifiedShow Answer

A post-closing trial balance will show

Correct AnswerverifiedShow Answer

The operating cycle of a company is determined by the number of years the company has been operating.

Correct AnswerverifiedShow Answer

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Correct AnswerverifiedShow Answer

The adjustments columns of the worksheet for Mandy Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

Correct AnswerverifiedShow Answer

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Correct AnswerverifiedShow Answer

The Income Summary account is an important account that is used

Correct AnswerverifiedShow Answer

Correcting entries

Correct AnswerverifiedShow Answer

The preparation of a ______________ and ______________ entries are two optional steps in the accounting cycle.

Correct Answerverifiedworksheet,...View AnswerShow Answer

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: The sub-classifications for assets on the company's classified balance sheet would include all of the following except

Correct AnswerverifiedShow Answer

The IASB and FASB are working on a converged statement of financial position using the headings of

Correct AnswerverifiedShow Answer

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

Correct AnswerverifiedShow Answer

A company's operating cycle and fiscal year are usually the same length of time.

Correct AnswerverifiedShow Answer

Under IFRS

Correct AnswerverifiedShow Answer

Closing entries

Correct AnswerverifiedShow Answer

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The preparation of a and entries are two optional steps in the accounting cycle.

Correct Answer
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worksheet,...
View Answer

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