Question 1

Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.

Accepted Answer

A) True 
 B)False

Question 2

The first item appearing on the statement of retained earnings is

Accepted Answer

A)   net income
B)   the ending balance of retained earnings
C)   dividends
D)   the beginning balance of retained earningsE) B) and D)
F) B) and C)

Question 3

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

Accepted Answer

A)   Consulting Revenue
B)   Prepaid Insurance
C)   Rent Expense
D)   Fees EarnedE) A) and C)
F) A) and D)

Question 4

The entry to close expenses would be:

Accepted Answer

A)   Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000Income Summary 105,000
B)   Expenses 105,000Income Summary 105,000
C)   Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000Dividends 105,000
D)   Income Summary 105,000Wages Expense 63,000Rent Expense 27,000Depreciation Expense 15,000E) All of the above
F) A) and C)

Question 5

Which of the statements below indicates that a company earned a net income for the period?

Accepted Answer

A)   The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet.
B)   The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet.
C)   The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet.
D)   Cash inflows exceed cash outflows.E) B) and C)
F) C) and D)

Question 6

There is really no benefit in preparing financial statements in any particular order.

Accepted Answer

A) True 
 B)False

Question 7

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet,the totals of the debit and credit columns show debits of $37,686 and credits of $41,101.This indicates that

Accepted Answer

A)   neither net income or loss can be calculated because it is found on the income statement
B)   the company has a net loss of $3,415 for the period
C)   the company has a net income of $3,415 for the period
D)   the amounts are out of balance and need to be correctedE) A) and B)
F) A) and D)

Question 8

Once the adjusted trial balance is in balance,the flow of accounts will now go into the financial statements.

Accepted Answer

A) True 
 B)False

Question 9

The post-closing trial balance will generally have fewer accounts than the trial balance.

Accepted Answer

A) True 
 B)False

Question 10

Closing entries

Accepted Answer

A)   need not be journalized if adjusting entries are prepared
B)   need not be posted if the financial statements are prepared from the end-of-period spreadsheet
C)   are not needed if adjusting entries are prepared
D)   must be journalized and postedE) A) and B)
F) C) and D)

Question 11

The income statement is prepared from the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet.

Accepted Answer

A) True 
 B)False

Question 12

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 13

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31.
​
  Prepare the entry required to close the expense accounts at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings.Below is...

Question 14

​The income statement is prepared from

Accepted Answer

A)   ​the adjusted trial balance
B)   ​the Income Statement columns of the end-of-period spreadsheet
C)   ​either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet
D)   ​both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheetE) None of the above
F) B) and C)

Question 15

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520.What does this information mean to the accountant?

Accepted Answer

A)   net income of $21,720
B)   net loss of $21,720
C)   the accounts are out of balance,indicating an error has been made
D)   the accounts have not been updatedE) A) and C)
F) B) and C)

Question 16

Which of the following account groups are nominal accounts?

Accepted Answer

A)   Cash,Dividends,Wages Payable
B)   Prepaid Insurance,Equipment,Fees Earned
C)   Common Stock,Dividends,Income Summary
D)   Rent Revenue,Fees Earned,Miscellaneous ExpenseE) C) and D)
F) B) and D)

Question 17

Which of the accounts below would be closed by posting a debit to the account?

Accepted Answer

A)   Unearned Revenue
B)   Fees Earned
C)   Dividends
D)   Miscellaneous ExpenseE) A) and B)
F) C) and D)

Question 18

Accumulated Depreciation is a permanent account.

Accepted Answer

A) True 
 B)False

Question 19

The income summary account is also known as the clearing account.

Accepted Answer

A) True 
 B)False

Question 20

The end-of-period spreadsheet for the current year for Jamal Company shows Balance Sheet columns with a debit total of $630,430 and a credit total of $614,210.This is before the amount for net income or net loss has been included.In preparing the income statement from the end-of-period spreadsheet,what is the amount of net income or net loss?

Accepted Answer

Net income...

Exam 4: Completing the Accounting Cycle

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

Correct Answer
verified

Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.

Correct Answer
verified

Closing entries

Correct Answer
verified

There is really no benefit in preparing financial statements in any particular order.

Correct Answer
verified

The income statement is prepared from the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet.

Correct Answer
verified

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. Prepare the entry required to close the expense accounts at the end of the period.

Correct Answer
verified

Accumulated Depreciation is a permanent account.

Correct Answer
verified

Which of the statements below indicates that a company earned a net income for the period?

Correct Answer
verified

Which of the accounts below would be closed by posting a debit to the account?

Correct Answer
verified

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet,the totals of the debit and credit columns show debits of $37,686 and credits of $41,101.This indicates that

Correct Answer
verified

Once the adjusted trial balance is in balance,the flow of accounts will now go into the financial statements.

Correct Answer
verified

The entry to close expenses would be:

Correct Answer
verified

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Correct Answer
verified

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520.What does this information mean to the accountant?

Correct Answer
verified

Which of the following account groups are nominal accounts?

Correct Answer
verified

The post-closing trial balance will generally have fewer accounts than the trial balance.

Correct Answer
verified

The income summary account is also known as the clearing account.

Correct Answer
verified

The income statement is prepared from

Correct Answer
verified

Correct Answer
verified
Net income...
View Answer

The first item appearing on the statement of retained earnings is

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

Correct AnswerverifiedShow Answer

Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.

Correct AnswerverifiedShow Answer

Closing entries

Correct AnswerverifiedShow Answer

There is really no benefit in preparing financial statements in any particular order.

Correct AnswerverifiedShow Answer

The income statement is prepared from the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet.

Correct AnswerverifiedShow Answer

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. ​ Prepare the entry required to close the expense accounts at the end of the period.

Correct AnswerverifiedShow Answer

Accumulated Depreciation is a permanent account.

Correct AnswerverifiedShow Answer

Which of the statements below indicates that a company earned a net income for the period?

Correct AnswerverifiedShow Answer

Which of the accounts below would be closed by posting a debit to the account?

Correct AnswerverifiedShow Answer

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet,the totals of the debit and credit columns show debits of $37,686 and credits of $41,101.This indicates that

Correct AnswerverifiedShow Answer

Once the adjusted trial balance is in balance,the flow of accounts will now go into the financial statements.

Correct AnswerverifiedShow Answer

The entry to close expenses would be:

Correct AnswerverifiedShow Answer

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Correct AnswerverifiedShow Answer

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520.What does this information mean to the accountant?

Correct AnswerverifiedShow Answer

Which of the following account groups are nominal accounts?

Correct AnswerverifiedShow Answer

The post-closing trial balance will generally have fewer accounts than the trial balance.

Correct AnswerverifiedShow Answer

The income summary account is also known as the clearing account.

Correct AnswerverifiedShow Answer

​The income statement is prepared from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNet income...View AnswerShow Answer

The first item appearing on the statement of retained earnings is

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Beachside Realty rents condominiums and furnishings.Below is the adjusted trial balance at December 31. Prepare the entry required to close the expense accounts at the end of the period.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

The income statement is prepared from

Correct Answer
verified

Correct Answer
verified
Net income...
View Answer

Correct Answer
verified