College Accounting A Career Approach 12e Cathy J Scott - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below 1. Which of the following sequences of documents or records describes the proper sequence in the accounting cycle? a. Source documents, journal, ledger, work sheet, financial …
$19.99
College Accounting A Career Approach 12e Cathy J Scott – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
1. Which of the following sequences of documents or records describes the proper sequence in the accounting cycle?
|
2. Which of the following accounts would not be involved in closing entries?
|
3. Which of the following are all temporary accounts?
|
4. In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?
|
5. The owner’s Drawing account for the current period is closed to the
|
6. If L. Green’s total revenue for the year was $38,000 and total expenses were $30,000, the third closing entry would be
|
7. The Income Summary account has an $8,000 credit balance prior to being closed to the owner’s Capital account. The owner’s Capital account had a $32,000 beginning balance and a $36,500 ending balance. Determine the amount of the owner’s drawing during the current period.
|
8. The Income Summary account has a debit balance of $10,000 prior to closing. The owner’s Drawing account has a balance of $7,000 before closing. The owner’s Capital account will
|
9. Net income for a company is $35,000 for the current year. The owner withdrew $3,500 per month for personal expenses. The owner’s Capital account will show a net
|
10. Which of the following accounts should be closed to J. Bean, Capital, in the fourth closing entry?
|
11. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
|
12. Closing entries are prepared to close the
|
13. The last step in the closing procedure closes
|
14. Closing entries are prepared
|
15. The most efficient sources for closing entry information are the
|
16. The Cash account is
|
17. If expenses are greater than revenue, the Income Summary account will be closed by a debit to
|
18. Which of the following can be prepared by taking the account balances from the general ledger after closing?
|
19. The post-closing trial balance is best prepared from the
|
20. The post-closing trial balance will include
|
21. Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?
|
22. Revenue and expenses would not appear on a(n)
|
23. Which of the following accounts will have a remaining balance after the closing process is completed?
|
24. A net loss
|
25. Financial statements prepared during the fiscal year for periods of less than twelve months are called
|
26. Assume a company has a net income that exceeds the owner’s drawing for the current year. The owner’s Capital account
|
27. The first step in the accounting cycle is to
|
28. Which of the following statements is true concerning the steps in the accounting cycle?
|
29. The last step in the accounting cycle is to
|
30. Which of the following account(s) would be involved in closing entries?
|
31. Which of the following account(s) would remain open after closing entries?
|
32. The Income Summary account would be reported on which financial statement?
|
| 33. The adjusted balances for Tomas Co. are listed below.
Cash, $20,000 The entry to close revenue would involve a
|
| 34. The adjusted balances for Tomas Co. are listed below.
Cash, $20,000 The entry to close expenses would involve a
|
| 35. The adjusted balances for Tomas Co. are listed below.
Cash, $20,000 The entry to close Income Summary would involve a
|
| 36. The adjusted balances for Tomas Co. are listed below.
Cash, $20,000 The entry to close the drawing account would involve a
|
| 37. The adjusted balances for Tomas Co. are listed below.
Cash, $20,000 After recording the closing entries, what would be the balance of the capital account?
|
38. The entry to close revenue would involve a
|
39. The entry to close the drawing account would involve a
|
40. Entries required to clear or zero the balances of temporary accounts at the end of the year are called ____________ entries.
|
41. The fourth step in the closing process is to close the _____________ account(s) into the ___________ account(s).
|
42. The first step in the closing process is to close the _____________ account(s) into the ___________ account(s).
|
43. The second step in the closing process is to close the _____________ account(s) into the ___________ account(s).
|
44. The entry to close Income Summary, assuming a net loss, would involve a
|
45. The entry to close expenses would involve (a)
|
46. The closing process causes the account balance of which account to be zeroed out?
|
47. The Drawing account should be closed into the __________ account.
|
48. When using the work sheet to prepare closing entries, which of the following statement is correct?
|
49. What is the first step in the closing process?
|
50. Which of the following account(s) are real accounts?
|
51. Which of the following are all permanent accounts?
|
52. Which of the following accounts would be shown on the post-closing trial balance?
|
53. Which of the following accounts would not be shown on the post-closing trial balance?
|
54. The _______________ requires that revenue is recorded when it is received in cash and expenses are recorded when they are paid in cash.
|
55. The _______________ requires that revenue is recorded when earned and expenses are recorded when incurred.
|
56. Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using?
|
57. Munoz Co. prepays cash in October for insurance that covers only the month of November. Munoz Co. records the expense in October. Which method of accounting is Munoz Co. using?
|
58. Collins Co. uses the cash basis of accounting. Collins Co. prepays cash in April for insurance that covers only the month of May. Which of the following is true?
|
59. Boulder Co. uses the accrual basis of accounting. Boulder Co. receives cash from customers in October for services to be performed in December. Which of the following is true?
|
60. ___________ are prepared during the fiscal year and cover a period of time less than twelve months.
|
61. The first step in the closing entries is to close the revenue account(s) into the Income Summary account.
|
62. The balance in the owner’s Capital account is closed to the owner’s Drawing account.
|
63. The fourth step in the closing procedure is to close the Income Summary account into the Capital account.
|
64. Closing entries may be prepared from the ledger or the work sheet.
|
65. Closing entries are posted to the work sheet, but not to the general ledger.
|
66. Entries required to clear or zero the balances of the temporary accounts at the end of the year are called adjusting entries.
|
67. If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is a debit to Income Summary and a credit to Capital.
|
68. If Income Summary has a credit balance after closing revenue and expense accounts, this indicates a net loss.
|
69. The balance of the Drawing account is closed to the Capital account.
|
70. After closing the expense accounts, the total of the expense accounts will appear on the debit side of the Income Summary account.
|
71. The debit to Income Summary in the second closing entry represents the total expenses.
|
72. The Income Summary account balance should always increase after the closing entries are posted at the end of the accounting period.
|
73. Information for the closing entries is normally obtained from the Adjusted Trial Balance columns of a work sheet.
|
74. After the temporary accounts are closed, only the real accounts have balances.
|
75. The purpose of the post-closing trial balance is to make sure the debit balances equal the credit balances before the closing process.
|
76. The owner’s Capital account will always have a zero balance after the closing entries are posted.
|
77. A post-closing trial balance will include only permanent accounts.
|
78. The post-closing trial balance contains only asset, liability, and revenue accounts.
|
79. If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.
|
80. Both income statement and balance sheet accounts are closed at the end of a fiscal period.
|
81. Financial statements prepared during the fiscal year for periods of less than twelve months are called interim statements.
|
82. If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.
|
83. A net loss always increases liabilities.
|
84. The balance of Wages Payable will normally appear on the balance sheet.
|
85. The balance of Accumulated Depreciation will normally appear on the income statement.
|
| Classification |
86. Classify the following accounts as real (permanent) or nominal (temporary), and indicate with an X whether the account is closed. Also, indicate the financial statement in which each account will appear. The Accounts Payable account is given as an example.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ranking |
87. Rank the steps of the accounting cycle in the proper order of preparation.
|
88. How would the company’s books be affected if the company’s accountant failed to make any closing entries?
|
89. Compare and contrast a post-closing trial balance with a trial balance before closing.
|
90. Explain the differences between cash and accrual accounting methods.
|
91. List and explain at least two advantages and disadvantages of a computerized accounting system.
|
92. On December 31, the ledger accounts of Barsky Repair have the following balances after all adjusting entries have been posted.
Instructions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
93. Below is an alphabetical list of accounts of Master Cleaners as of December 31, after all adjusting entries have been posted.
Instructions: 1. Journalize the four closing entries in the proper order.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
94. The December 31 year-end ledger balances for Quick Delivery are presented below.
Instructions:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Match the terms that follow with the correct definitions.
|
95. List of the final balances of the general ledger after end-of-year procedures
|
96. Process in which preparing the post-closing trial balance is the last step
|
97. Accounts that belong to only one fiscal year and are closed out at the end of each fiscal year
|
98. The account used to record amounts taken out of the business by the owner
|
99. Account classifications that are closed into the Income Summary account
|
100. The debit to Income Summary represents the total
|
101. Accounts that are not closed out at the end of each fiscal year
|
102. Financial statements prepared during the fiscal year for a period of less than twelve months
|
103. Clearing the accounts or bringing to zero balance
|
104. Account that is used to assist in closing temporary-equity accounts
|
Match the terms that follow with the correct definitions.
|
105. An accounting system in which transactions are recorded by hand.
|
106. Software that integrates accounting, human resources, manufacturing, project management, and customer relationship management into one system.
|
107. A feature of QuickBooks that handles transactions related to specific areas, such as customers, vendors, employees, banking, and reports.
|
108. Software that is used via the Internet instead of from a local computer making it accessible from anywhere with an Internet connection.
|
109. The ability to transfer financial reports from on program to another.
|
110. Another term for an income statement.
|
111. An accounting system that records transactions using a computer and accounting software.
|
112. Procedures that store company data files in a safe place, such as online or on a flash drive.
|
| Accounting with QuickBooks |
113. Which of the following statements is true about Closing Entries?
|
114. How can you prevent prior period adjustment errors?
|
115. The closing date in QuickBooks is
|
116. How to run the Post-Closing Trial Balance report:
|
117. When do you run the Post-Closing Trial Balance report?
|
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
