FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Completing the Accounting Cycle

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

True/False

Review LaterAdd Note

Review Later

The most important output of the accounting cycle is the financial statements.

A) True
B) False

Correct Answer

verified

Show Answer

Question 82

True/False

Review LaterAdd Note

Review Later

Closing entries are entered directly on to the work sheet.

A) True
B) False

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

Net income is shown on the work sheet in the Income Statement debit column and the Balance Sheet credit column.

After posting the second closing entry to the income summary account,the balance will be equal to

A post-closing trial balance contains only asset and liability accounts.

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Stockton Company }$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Adjusted Trial Balance }$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { December } 31$ $\begin{array}{|l|r|r|}\hline \text { Cash } & 7,530 & \\\hline \text { Accounts Receivable } & 2,100 & \\\hline \text { Prepaid Expenses } & 700 & \\\hline \text { Equipment } & 13,700 & \\\hline \text { Accumulated Depreciation } & & 1,100 \\\hline \text { Accounts Payable } & & 1,900 \\\hline \text { Notes Payable } & & 4,300 \\\hline \text { Common Stock } & & 1,000 \\\hline \text { Retained Earnings } & & 12,940 \\\hline \text { Dividends } & 790 & \\\hline \text { Fees Earned } & & 9,250 \\\hline \text { Wages Expense } & 2,500 & \\\hline \text { Rent Expense } & 1,960 & \\\hline \text { Utilities Expense } & 775 & \\\hline \text { Depreciation Expense } & 250 & \\\hline \text { Miscellaneous Expense } & 185 & \\\hline \text { Totals } & 30,490 & 30,490 \\\hline\end{array}$ -Determine the total liabilities for the period.

The natural business year is a

The statement of retained earnings should be prepared

On March 1,a company collects revenue in advance for the next twelve months and credits a liability account.The adjusting entry at year end on the work sheet would

The last step of the accounting cycle is to prepare a post-closing trial balance.

There are four closing entries.The first one is to close revenues,the second one is to close expenses,the third one is to close ,and the last one is to close the .

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments,they are simply added to the account title column.

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

The entry to close the appropriate insurance account at the end of the accounting period is

The accounting cycle begins with preparing an unadjusted trial balance.

The income summary account is also called

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

Closing entries

What is the first account that should be listed in the post-closing trial balance?

Prepaid Insurance is an example of a current asset.