Filters
Question type
Study Flashcards

A company paid Jen Rogers,its sole stockholder,a total of $35,000 in dividends during the current year.The entry needed to close the dividends account is:


A) Debit Income Summary and credit Cash for $35,000.
B) Debit Dividends and credit Cash for $35,000.
C) Debit Income Summary and credit Dividends for $35,000.
D) Debit Retained earnings and credit Dividends for $35,000.
E) Debit Dividends and credit Retained earnings for $35,000.

F) None of the above
G) C) and D)

Correct Answer

verifed

verified

If a company has current assets of $15,000 and current liabilities of $9,500,its current ratio is 1.6

A) True
B) False

Correct Answer

verifed

verified

Companies experiencing seasonal variations in sales often choose a fiscal year corresponding to their ________ year.

Correct Answer

verifed

verified

The Income Summary account is a permanent account that will be carried forward period after period.

A) True
B) False

Correct Answer

verifed

verified

Under the alternative method for accounting for unearned revenue,which of the following pairs of journal entry formats is correct?


A)  Initial Entry  Adjusting Entry  Cash  Unearned Consulting Revenue  Unearned Consulting Revenue  Consulting Revenue \begin{array} { | l | l | } \hline{ \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Cash } & \text { Unearned Consulting Revenue } \\\hline \text { Unearned Consulting Revenue } & \text { Consulting Revenue } \\\hline\end{array}
B)  Initial Entry  Adjusting Entry  Cash  Consulting Revenue  Consulting Revenue  Unearned Revenue \begin{array} { | l | l | } \hline\text { Initial Entry } & \text { Adjusting Entry } \\\hline \text { Cash } & \text { Consulting Revenue } \\\hline \text { Consulting Revenue } & \text { Unearned Revenue } \\\hline\end{array}
C)  Initial Entry  Adjusting Entry  Cash  Unearned Revenue  Unearned Revenue  Cash \begin{array} { | l | l | } \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Cash } & \text { Unearned Revenue } \\\hline \text { Unearned Revenue } & \text { Cash } \\\hline\end{array}
D)  Initial Entry  Adjusting Entry  Consulting Revenue  Unearned Revenue  Cash  Consulting Revenue \begin{array} { | l | l | } \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Consulting Revenue } & \text { Unearned Revenue } \\\hline \text { Cash } & \text { Consulting Revenue } \\\hline\end{array}
E)  Initial Entry  Adjusting Entry  Cash  Consulting Revenue  Unearned Revenue  Unearned Reverue \begin{array} { | l | l | } \hline { \text { Initial Entry } } &{ \text { Adjusting Entry } } \\\hline \text { Cash } & \text { Consulting Revenue } \\\hline \text { Unearned Revenue } & \text { Unearned Reverue } \\\hline\end{array}

F) A) and B)
G) B) and D)

Correct Answer

verifed

verified

Using the information presented below,prepare a statement of retained earnings and balance sheet from the adjusted trial balance of Dodson Containers. Using the information presented below,prepare a statement of retained earnings and balance sheet from the adjusted trial balance of Dodson Containers.

Correct Answer

verifed

verified

Classified balance sheets commonly include the following categories: A. Current assets B. Long-term investments C. Plant assets D. Intangible assets E. Current liabilities F. Long-term liabilities G. Equity. Match the typical classification of each item below with its correct balance sheet category (A through G) . -Equipment used in business operations


A) G
B) B
C) A
D) C
E) F
F) D
G) E

H) C) and E)
I) B) and C)

Correct Answer

verifed

verified

The first five steps in the accounting cycle include analyzing transactions,journalizing,posting,preparing an unadjusted trial balance,and recording adjusting entries.

A) True
B) False

Correct Answer

verifed

verified

On April 1,Griffith Publishing Company received $1,548 from Santa Fe,Inc.for 36-month subscriptions to several different magazines.The company credited Unearned Fees for the amount received and the subscriptions started immediately.Assuming adjustments are only made at year-end,What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year?


A) debit Unearned Fees, $1,548; credit Fees Earned, $1,548.
B) debit Unearned Fees, $516; credit Fees Earned, $516.
C) debit Unearned Fees, $1,161; credit Fees Earned, $1,161.
D) debit Unearned Fees, $129; credit Fees Earned, $129.
E) debit Unearned Fees, $387; credit Fees Earned, $387.

F) All of the above
G) D) and E)

Correct Answer

verifed

verified

On July 1,a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date.What will be the insurance expense on the annual income statement for the first year ended December 31?


A) $1,200.
B) $2,400.
C) $1,000.
D) $400.
E) $1,400.

F) A) and D)
G) A) and E)

Correct Answer

verifed

verified

It is obvious that an error occurred in the preparation and/or posting of closing entries if:


A) all revenue and expense accounts have zero balances.
B) the Retained earnings account is debited for the amount of the net loss for the period.
C) the income summary account is debited for the amount of net income for the period.
D) all balance sheet accounts have zero balances.
E) only permanent accounts appear on the post-closing trial balance.

F) A) and B)
G) D) and E)

Correct Answer

verifed

verified

Match the following types of adjustments with the appropriate transactions. -Prepaid expense


A) Used to record wages owed, but not yet paid.
B) Used to record revenue earned for which cash was received in advance.
C) Used to record revenue earned for which cash has not been received.
D) Used to record expiration or use of prepaid insurance.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

A) True
B) False

Correct Answer

verifed

verified

Classified balance sheets commonly include the following categories: A. Current assets B. Long-term investments C. Plant assets D. Intangible assets E. Current liabilities F. Long-term liabilities G. Equity. Match the typical classification of each item below with its correct balance sheet category (A through G) . -Cash


A) G
B) B
C) A
D) C
E) F
F) D
G) E

H) B) and D)
I) C) and D)

Correct Answer

verifed

verified

An expense account is normally closed by debiting Income Summary and crediting the expense account.

A) True
B) False

Correct Answer

verifed

verified

When there is a net loss,the Income Summary account would have a credit balance.

A) True
B) False

Correct Answer

verifed

verified

After posting the entries to close all revenue and expense accounts,the Income Summary account of Cleaver Auto Services has a $4,000 debit balance.This result implies that Cleaver earned a net income of $4,000.

A) True
B) False

Correct Answer

verifed

verified

Tiptoe Shoes had annual revenues of $185,000,expenses of $103,700,and dividends of $18,000 during the current year.The retained earnings account before closing had a balance of $297,000.The entry to close the Income Summary account at the end of the year,after revenue and expense accounts have been closed,is:


A) Debit Retained earnings $297,000; credit Income Summary $297,000
B) Debit Retained earnings $63,300; credit Income Summary $63,300
C) Debit Income Summary $63,300; credit Retained earnings $63,300
D) Debit Income Summary $81,300, credit Retained earnings $81,300
E) Debit Retained earnings $81,300; credit Income Summary $81,300

F) C) and D)
G) All of the above

Correct Answer

verifed

verified

Trapper Company's unadjusted and adjusted trial balances on December 31 of the current year are as follows: Trapper Company's unadjusted and adjusted trial balances on December 31 of the current year are as follows: Present the four adjusting journal entries that were recorded by Trapper Company. Present the four adjusting journal entries that were recorded by Trapper Company.

Correct Answer

verifed

verified

Dec.31 Insurance Expense ………………………..300
...

View Answer

Each adjusting entry will affect a balance sheet account.

A) True
B) False

Correct Answer

verifed

verified

Showing 61 - 80 of 445

Related Exams

Exam 1

Accounting in Business

331 Questions

Exam 2

Analyzing for Business Transactions

293 Questions

Exam 4

Accounting for Merchandising Operations

267 Questions

Exam 5

Inventories and Cost of Sales

258 Questions

Exam 6

Cash, fraud, and Internal Controls

230 Questions

Exam 7

Accounting for Receivables

237 Questions

Exam 8

Accounting for Long-Term Assets

283 Questions

Exam 9

Accounting for Current Liabilities

258 Questions

Exam 10

Accounting for Long-Term Liabilities

250 Questions

Exam 11

Corporate Reporting and Analysis

247 Questions

Exam 12

Reporting Cash Flows

265 Questions

Exam 13

Analysis of Financial Statements

263 Questions

Exam 14

Time Value of Money

84 Questions

Exam 15

Investments

228 Questions

Exam 16

Partnership Accounting

189 Questions

Show Answer