Question 1

The majority of businesses end their fiscal year on December 31.

Accepted Answer

A) True 
 B)False

Question 2

Use the adjusted trial balance for Stockton Company below to answer the questions that follow.
  ​
-Determine the net income (loss)  for the period.

Accepted Answer

A)   net income $9,250
B)   net loss $790
C)   net loss $5,670
D)   net income $3,580E) None of the above
F) B) and C)

Question 3

An end-of-period spreadsheet heading is dated for a period of time.

Accepted Answer

A) True 
 B)False

Question 4

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...

Question 5

Match each journal entry that follows as one of the types of journal entries (a-c)  below.
-​Utilities Expense 430
Cash 430

Accepted Answer

A)  Journal entries
B)  Adjusting journal entries
C)  Closing journal entriesD) A) and B)
E) All of the above

Question 6

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

Accepted Answer

A)   Rent Expense
B)   Fees Earned
C)   Income Summary
D)   Depreciation ExpenseE) A) and B)
F) None of the above

Question 8

Journalizing and posting closing entries must be completed before financial statements can be prepared.

Accepted Answer

A) True 
 B)False

Question 9

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet:  
 Net income for the period is

Accepted Answer

A)   $5,500
B)   $11,900
C)   $17,400
D)   $8,700E) A) and B)
F) C) and D)

Question 10

Match each journal entry that follows as one of the types of journal entries (a-c)  below.
-​Dividends 215
Cash 215

Accepted Answer

A)  Journal entries
B)  Adjusting journal entries
C)  Closing journal entriesD) B) and C)
E) All of the above

Question 11

During the end-of-period processing, which of the following best describes the logical order of steps?

Accepted Answer

A)   ​preparation of adjustments, adjusted trial balance, financial statements
B)   ​preparation of income statement, adjusted trial balance, balance sheet
C)   ​preparation of adjusted trial balance, cross-referencing, journalizing
D)   ​preparation of adjustments, adjusted trial balance, postingE) B) and C)
F) All of the above

Question 12

Indicate whether each of the following would be reported in the financial statements as a (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

Accepted Answer

The answer of Indicate whether each of the following would...

Question 13

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) B) and C)
F) A) and D)

Question 14

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

Accepted Answer

A) True 
 B)False

Question 15

The income summary account is closed to the retained earnings account.

Accepted Answer

A) True 
 B)False

Question 16

Use the adjusted trial balance for Stockton Company below to answer the questions that follow.
  ​
-Determine the total liabilities for the period.

Accepted Answer

A)   $1,900
B)   $6,200
C)   $4,300
D)   $20,240E) None of the above
F) A) and B)

Question 17

Use this end-of-period spreadsheet to answer the questions that follow.
​
  ​
​
-The entry to close the dividends account would be

Accepted Answer

A)   debit Retained Earnings, $3,000; credit Dividends, $3,000
B)   debit Retained Earnings, $12,000; credit Dividends, $12,000
C)   debit Dividends, $3,000; credit Retained Earnings, $3,000
D)   debit Dividends, $12,000; credit Retained Earnings, $12,000E) A) and D)
F) A) and B)

Question 18

Which of the following is not an essential part of the accounting records?

Accepted Answer

A)   the journal
B)   the ledger
C)   the chart of accounts
D)   the end-of-period spreadsheetE) B) and C)
F) A) and D)

Question 19

The balance sheet should be prepared

Accepted Answer

A)   before the income statement and the retained earnings statement
B)   before the income statement and after the retained earnings statement
C)   after the income statement and the retained earnings statement
D)   after the income statement and before the retained earnings statementE) A) and D)
F) B) and D)

Question 20

Match each journal entry that follows as one of the types of journal entries (a-c)  below.
-​Cash 450
Fees Earned 450

Accepted Answer

A)  Journal entries
B)  Adjusting journal entries
C)  Closing journal entriesD) None of the above
E) All of the above

Exam 4: The Accounting Cycle

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Dividends 215 Cash 215

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Use the adjusted trial balance for Stockton Company below to answer the questions that follow. ​ -Determine the total liabilities for the period.

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During the end-of-period processing, which of the following best describes the logical order of steps?

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An end-of-period spreadsheet heading is dated for a period of time.

Correct AnswerverifiedShow Answer

Indicate whether each of the following would be reported in the financial statements as a (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

Correct AnswerverifiedShow Answer

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Net income for the period is

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The income summary account is closed to the retained earnings account.

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Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

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The majority of businesses end their fiscal year on December 31.

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Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Utilities Expense 430 Cash 430

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Use this end-of-period spreadsheet to answer the questions that follow. ​ ​ ​ -The entry to close the dividends account would be

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If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Correct AnswerverifiedShow Answer

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

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Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Cash 450 Fees Earned 450

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Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

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The balance sheet should be prepared

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Which of the following is not an essential part of the accounting records?

Correct AnswerverifiedShow Answer

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. ​ -Determine the net income (loss) for the period.

Correct AnswerverifiedShow Answer

Journalizing and posting closing entries must be completed before financial statements can be prepared.

Correct AnswerverifiedShow Answer

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

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Dividends 215 Cash 215

Correct Answer
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Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the total liabilities for the period.

Correct Answer
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Match each journal entry that follows as one of the types of journal entries (a-c) below. -Utilities Expense 430 Cash 430

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Use this end-of-period spreadsheet to answer the questions that follow. -The entry to close the dividends account would be

Correct Answer
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Match each journal entry that follows as one of the types of journal entries (a-c) below. -Cash 450 Fees Earned 450

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Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine the net income (loss) for the period.

Correct Answer
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