Question 1

Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end of an accounting period. If closing entries were not made, how would the preparation of financial statements be affected?

Accepted Answer

Closing entries are prepared to close th...

Question 2

The subtotal net assets is used in

Accepted Answer

A)   both GAAP and IFRS.
B)   GAAP but not IFRS.
C)   IFRS but not GAAP.
D)   neither IFRS nor GAAP.IFRS.

Question 3

The net income (or loss)  for the period

Accepted Answer

A)   is found by computing the difference between the income statement credit column and the balance sheet credit column on the worksheet.
B)   cannot be found on the worksheet.
C)   is found by computing the difference between the income statement columns of the worksheet.
D)   is found by computing the difference between the trial balance totals and the adjusted trial balance totals.

Question 4

Identify which of the following accounts would appear in a post-closing trial balance.

Accepted Answer

The following accounts would a...

Question 5

IFRS requires the use of

Accepted Answer

A)   the term balance sheet.
B)   the term statement of financial position.
C)   neither balance sheet nor statement of financial position, but recommends use of the term balance sheet.
D)   neither balance sheet nor statement of financial position, but recommends use of the term statement of financial position.IFRS.

Question 6

The worksheet does not show

Accepted Answer

A)   net income or loss for the period.
B)   revenue and expense account balances.
C)   the ending balance in the retained earnings account.
D)   the trial balance before adjustments.

Question 7

Give the definition of current assets and current liabilities and provide two examples of each.

Accepted Answer

Current assets are assets that a company...

Question 8

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Accepted Answer

A) True 
 B)False

Question 9

The following information is for Bright Eyes Auto Supplies:  The total dollar amount of assets to be classified as property, plant, and equipment is

Accepted Answer

A)   $390,000.
B)   $450,000.
C)   $570,000.
D)   $630,000.

Question 10

Correcting entries are made

Accepted Answer

A)   at the beginning of an accounting period.
B)   at the end of an accounting period.
C)   whenever an error is discovered.
D)   after closing entries.

Question 11

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?

Accepted Answer

A reversing entry is the exact...

Question 12

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

Accepted Answer

A) True 
 B)False

Question 13

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000, and the Dividends account has a balance of $48,000.
Instructions
(a) Journalize the entries required to complete the closing of the accounts.
(b) Prepare a retained earnings statement for the year ended December 31, 2018.

Accepted Answer

The answer of All revenue and expense accounts have been...

Question 14

The operating cycle of a company is the average time that is required to go from cash to

Accepted Answer

A)   sales in producing revenues.
B)   cash in producing revenues.
C)   inventory in producing revenues.
D)   accounts receivable in producing revenues.

Question 15

Intangible assets include each of the following except

Accepted Answer

A)   copyrights.
B)   goodwill.
C)   land improvements.
D)   patents.

Question 16

The following information is for Bright Eyes Auto Supplies:  The total dollar amount of assets to be classified as investments is

Accepted Answer

A)   $0.
B)   $140,000.
C)   $180,000.
D)   $250,000.

Question 17

Current liabilities are obligations that the company is to pay within the coming year.

Accepted Answer

A) True 
 B)False

Question 18

Current liabilities

Accepted Answer

A)   are obligations that the company is to pay within the forthcoming year.
B)   are listed in the balance sheet in order of their expected maturity.
C)   are listed in the balance sheet, starting with accounts payable.
D)   should not include long-term debt that is expected to be paid within the next year.

Question 19

The most efficient way to accomplish closing entries is to

Accepted Answer

A)   credit the income summary account for each revenue account balance.
B)   debit the income summary account for each expense account balance.
C)   credit the dividends balance directly to the income summary account.
D)   credit the income summary account for total revenues and debit the income summary account for total expenses.

Question 20

Match between columns
                        Premises: Obligations that a company expects to pay after one year.
A part of owners' equity in a corporation.
An optional tool which facilitates the preparation of financial statements.
A temporary account used in the closing process.
Balance sheet accounts whose balances are carried forward to the next period.
The average time that it takes to go from cash to cash in producing revenues.
Entries to correct errors made in recording transactions.
The exact opposite of an adjusting entry made in a previous period.
Entries at the end of an accounting period to transfer the balances of temporary accounts to  a permanent stockholders’ equity account.
Assets that a company expects to pay or convert to cash or use up within one year.

Accepted Answer

The Answer of Worksheet and Permanent accounts and Closing entries is...

Exam 4: Completing the Accounting Cycle

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as property, plant, and equipment is

Correct Answer
verified

Current liabilities are obligations that the company is to pay within the coming year.

Correct Answer
verified

The worksheet does not show

Correct Answer
verified

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Correct Answer
verified

Current liabilities

Correct Answer
verified

Match the items below

IFRS requires the use of

Correct Answer
verified

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as investments is

Correct Answer
verified

Correct Answer
verified

Correcting entries are made

Correct Answer
verified

Intangible assets include each of the following except

Correct Answer
verified

The most efficient way to accomplish closing entries is to

Correct Answer
verified

Give the definition of current assets and current liabilities and provide two examples of each.

Correct Answer
verified
Current assets are assets that a company...
View Answer

The net income (or loss) for the period

Correct Answer
verified

Identify which of the following accounts would appear in a post-closing trial balance.

Correct Answer
verified
The following accounts would a...
View Answer

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

Correct Answer
verified

The operating cycle of a company is the average time that is required to go from cash to

Correct Answer
verified

The subtotal net assets is used in

Correct Answer
verified

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?

Correct Answer
verified
A reversing entry is the exact...
View Answer

Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end of an accounting period. If closing entries were not made, how would the preparation of financial statements be affected?

Correct Answer
verified
Closing entries are prepared to close th...
View Answer

Exam 4: Completing the Accounting Cycle

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as property, plant, and equipment is

Correct AnswerverifiedShow Answer

Current liabilities are obligations that the company is to pay within the coming year.

Correct AnswerverifiedShow Answer

The worksheet does not show

Correct AnswerverifiedShow Answer

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Correct AnswerverifiedShow Answer

Current liabilities

Correct AnswerverifiedShow Answer

Match the items below

IFRS requires the use of

Correct AnswerverifiedShow Answer

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as investments is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correcting entries are made

Correct AnswerverifiedShow Answer

Intangible assets include each of the following except

Correct AnswerverifiedShow Answer

The most efficient way to accomplish closing entries is to

Correct AnswerverifiedShow Answer

Give the definition of current assets and current liabilities and provide two examples of each.

Correct AnswerverifiedCurrent assets are assets that a company...View AnswerShow Answer

The net income (or loss) for the period

Correct AnswerverifiedShow Answer

Identify which of the following accounts would appear in a post-closing trial balance.

Correct AnswerverifiedThe following accounts would a...View AnswerShow Answer

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

Correct AnswerverifiedShow Answer

The operating cycle of a company is the average time that is required to go from cash to

Correct AnswerverifiedShow Answer

The subtotal net assets is used in

Correct AnswerverifiedShow Answer

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?

Correct AnswerverifiedA reversing entry is the exact...View AnswerShow Answer

Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end of an accounting period. If closing entries were not made, how would the preparation of financial statements be affected?

Correct AnswerverifiedClosing entries are prepared to close th...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Current assets are assets that a company...
View Answer

Correct Answer
verified

Correct Answer
verified
The following accounts would a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A reversing entry is the exact...
View Answer

Correct Answer
verified
Closing entries are prepared to close th...
View Answer