Question 1

Which of the following identifies the proper order of the accounting cycle?

Accepted Answer

A)   Analyze, journalize, unadjusted trial balance
B)   Analyze, post, unadjusted trial balance
C)   Journalize, post, unadjusted trial balance
D)   Unadjusted trial balance, adjusted trial balance, close
E)   Adjusted trial balance, adjustments, financial statements

Question 2

The asset section of a classified balance sheet usually includes:

Accepted Answer

A)   Current assets, investments, plant assets, and intangible assets.
B)   Current assets, long-term assets, revenues, and intangible assets.
C)   Current assets, investments, plant assets, and equity.
D)   Current liabilities, investments, plant assets, and intangible assets.
E)   Current assets, liabilities, plant assets, and intangible assets.

Question 3

Which of the following statements is true?

Accepted Answer

A)   Retained earnings must be closed each accounting period.
B)   A post-closing trial balance should include only permanent accounts.
C)   Information on the work sheet can be used in place of preparing financial statements.
D)   By using a work sheet to prepare adjusting entries, you need not post these entries to the ledger accounts
E)   Closing entries are only necessary if errors have been made.

Question 4

A 10-column spreadsheet used to draft a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements and which is an optional tool in the accounting process is a(n) :

Accepted Answer

A)   Adjusted trial balance
B)   Work sheet
C)   Post-closing trial balance
D)   Unadjusted trial balance
E)   General ledger

Question 5

A partially completed worksheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet columns.

Accepted Answer

a Adjusted fees earned - unadjusted fe...

Question 6

A company shows a $600 balance in prepaid insurance in the Unadjusted Trial Balance columns of the work sheet.The Adjustments columns show expired insurance of $200.This adjusting entry results in:

Accepted Answer

A)   $200 less in net income.
B)   $200 more in net income.
C)   $200 difference between the debit and credit columns of the unadjusted trial balance.
D)   $200 of prepaid insurance.
E)   An error in the financial statements.

Question 7

The difference between the cost of an asset and the accumulated depreciation for that asset is called

Accepted Answer

A)   Depreciation Expense
B)   Unearned Depreciation
C)   Prepaid Depreciation
D)   Depreciation Value
E)   Book Value

Question 8

Prepare an income statement from the adjusted trial balance of Hanson Storage.

Accepted Answer

None...

Question 9

Identify the differences between accrual accounting and cash basis accounting.

Accepted Answer

Accrual accounting records rev...

Question 10

Profit margin equals ___________________ divided by net sales.

Accepted Answer

The answer of Profit margin equals ___________________ divided by net...

Question 11

In preparing statements from the adjusted trial balance,the balance sheet must be prepared first.

Accepted Answer

A) True 
 B)False

Question 12

Manning,Co.collected six-months' rent in advance from a tenant on November 1 of the current year.When cash was collected,the following entry was made:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Nov. 01 } & \text { Cash } & 15,000 & \
\hline & \text { Rent Revenue Earned } & & 15,000 \
\hline
\end{array}$$ 
Prepare the required adjusting entry at December 31 of the current year.

Accepted Answer

($15,000/6 mo. = $2,...

Question 13

If a company failed to make the end-of-period adjustment to remove the amount earned from the Unearned Management Fees account,there would be:

Accepted Answer

A)   An overstatement of net income.
B)   An overstatement of assets.
C)   An overstatement of liabilities.
D)   An overstatement of equity.
E)   An understatement of liabilities.

Question 14

A(n)_______________________ is a listing of all of the accounts in the ledger with their account balances before adjustments are made.

Accepted Answer

unadjusted...

Question 15

__________________ expenses are those costs that are incurred in a period but are both unpaid and unrecorded.

Accepted Answer

The answer of __________________ expenses are those costs that are...

Question 16

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

Accepted Answer

a. No adjustments to cash.
b. $700 - O...

Question 17

Accumulated depreciation,accounts receivable,and service fees earned would be sorted to which respective columns in completing a work sheet?

Accepted Answer

A)   Balance Sheet-Credit; Balance Sheet Debit; and Income Statement-Credit.
B)   Balance Sheet-Debit; Balance Sheet; and Income Statement-Credit.
C)   Income Statement-Debit; Balance Sheet-Debit; and Income Statement-Credit.
D)   Income Statement-Debit; Income Statement-Debit; and Balance Sheet-Credit.
E)   Balance Sheet-Credit; Income Statement-Debit; and Income Statement-Credit.

Question 18

The accrual basis of accounting is an accounting system in which revenues are reported as earned when cash is received.

Accepted Answer

A) True 
 B)False

Question 19

Following are selected accounts and their balances for a company after the adjustments as of May 31,the end of its fiscal year.(All accounts have normal balances.)
 $\begin{array}{|l|r|}
\hline \text { Retained earnings } & \$ 30,000 \
\hline \text { Dividends } & 6,000 \
\hline \text { Fees earned } & 20,000 \
\hline \text { Salaries expense } & 7,000 \
\hline \text { Insurance expense } & 350 \
\hline \text { Utilities expense } & 75 \
\hline \text { Supplies expense } & 500 \
\hline \text { Supplies } & 400 \
\hline \text { Salaries payable } & 300 \
\hline \text { Depreciation expense } & 425 \
\hline
\end{array}$ 
Prepare all the necessary closing entries for this company.

Accepted Answer

None...

Question 20

Financial statements are typically prepared in the following order:

Accepted Answer

A)   Balance sheet, statement of retained earnings, income statement.
B)   Statement of retained earnings, balance sheet, income statement.
C)   Income statement, balance sheet, statement of retained earnings.
D)   Income statement, statement of retained earnings, balance sheet.
E)   Balance sheet, income statement, statement of retained earnings.

Exam 3: Adjusting Accounts and Preparing Financial Statements

The asset section of a classified balance sheet usually includes:

Correct Answer
verified

Correct Answer
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None...
View Answer

A company shows a $600 balance in prepaid insurance in the Unadjusted Trial Balance columns of the work sheet.The Adjustments columns show expired insurance of $200.This adjusting entry results in:

Correct Answer
verified

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

Correct Answer
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a. No adjustments to cash.
b. $700 - O...
View Answer

Prepare an income statement from the adjusted trial balance of Hanson Storage.

Correct Answer
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None...
View Answer

The difference between the cost of an asset and the accumulated depreciation for that asset is called

Correct Answer
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Which of the following statements is true?

Correct Answer
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Correct Answer
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($15,000/6 mo. = $2,...
View Answer

__________________ expenses are those costs that are incurred in a period but are both unpaid and unrecorded.

Correct Answer
verified

A(n)_______________________ is a listing of all of the accounts in the ledger with their account balances before adjustments are made.

Correct Answer
verified
unadjusted...
View Answer

In preparing statements from the adjusted trial balance,the balance sheet must be prepared first.

Correct Answer
verified

Financial statements are typically prepared in the following order:

Correct Answer
verified

If a company failed to make the end-of-period adjustment to remove the amount earned from the Unearned Management Fees account,there would be:

Correct Answer
verified

Identify the differences between accrual accounting and cash basis accounting.

Correct Answer
verified
Accrual accounting records rev...
View Answer

A partially completed worksheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet columns.

Correct Answer
verified

a Adjusted fees earned - unadjusted fe...
View Answer

Accumulated depreciation,accounts receivable,and service fees earned would be sorted to which respective columns in completing a work sheet?

Correct Answer
verified

The accrual basis of accounting is an accounting system in which revenues are reported as earned when cash is received.

Correct Answer
verified

A 10-column spreadsheet used to draft a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements and which is an optional tool in the accounting process is a(n) :

Correct Answer
verified

Which of the following identifies the proper order of the accounting cycle?

Correct Answer
verified

Profit margin equals ___________________ divided by net sales.

Correct Answer
verified

Exam 3: Adjusting Accounts and Preparing Financial Statements

The asset section of a classified balance sheet usually includes:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

A company shows a $600 balance in prepaid insurance in the Unadjusted Trial Balance columns of the work sheet.The Adjustments columns show expired insurance of $200.This adjusting entry results in:

Correct AnswerverifiedShow Answer

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

Correct Answerverified a. No adjustments to cash.b. $700 - O...View AnswerShow Answer

Prepare an income statement from the adjusted trial balance of Hanson Storage.

Correct AnswerverifiedNone...View AnswerShow Answer

The difference between the cost of an asset and the accumulated depreciation for that asset is called

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct Answerverified($15,000/6 mo. = $2,...View AnswerShow Answer

__________________ expenses are those costs that are incurred in a period but are both unpaid and unrecorded.

Correct AnswerverifiedShow Answer

A(n)_______________________ is a listing of all of the accounts in the ledger with their account balances before adjustments are made.

Correct Answerverifiedunadjusted...View AnswerShow Answer

In preparing statements from the adjusted trial balance,the balance sheet must be prepared first.

Correct AnswerverifiedShow Answer

Financial statements are typically prepared in the following order:

Correct AnswerverifiedShow Answer

If a company failed to make the end-of-period adjustment to remove the amount earned from the Unearned Management Fees account,there would be:

Correct AnswerverifiedShow Answer

Identify the differences between accrual accounting and cash basis accounting.

Correct AnswerverifiedAccrual accounting records rev...View AnswerShow Answer

A partially completed worksheet is shown below.The unadjusted trial balance columns are complete.Complete the adjustments,adjusted trial balance,income statement,and balance sheet columns.

Correct Answerverified a Adjusted fees earned - unadjusted fe...View AnswerShow Answer

Accumulated depreciation,accounts receivable,and service fees earned would be sorted to which respective columns in completing a work sheet?

Correct AnswerverifiedShow Answer

The accrual basis of accounting is an accounting system in which revenues are reported as earned when cash is received.

Correct AnswerverifiedShow Answer

A 10-column spreadsheet used to draft a company's unadjusted trial balance,adjusting entries,adjusted trial balance,and financial statements and which is an optional tool in the accounting process is a(n) :

Correct AnswerverifiedShow Answer

Which of the following identifies the proper order of the accounting cycle?

Correct AnswerverifiedShow Answer

Profit margin equals ___________________ divided by net sales.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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None...
View Answer

Correct Answer
verified

Correct Answer
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a. No adjustments to cash.
b. $700 - O...
View Answer

Correct Answer
verified
None...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
($15,000/6 mo. = $2,...
View Answer

Correct Answer
verified

Correct Answer
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unadjusted...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Accrual accounting records rev...
View Answer

Correct Answer
verified

a Adjusted fees earned - unadjusted fe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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