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Exam 4: Completing the Accounting Cycle

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Question 101

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Preparing the worksheet is a required step of the accounting cycle.

A) True
B) False

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Question 102

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The financial statements are prepared from the ________.

A) adjusted trial balance
B) chart of accounts
C) statement of owner's equity
D) unadjusted trial balance

E) None of the above
F) B) and C)

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Question 103

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The current ratio is calculated using the values from the income statement.

The Owner,Withdrawals account is included in the income statement section of the worksheet.

Which of the following accounts has an ending balance equal to net income immediately before it is closed?

The Accounts Receivable account is a permanent account.

The Martinez,Withdrawals account is a permanent account.

The Accounts Payable account is a temporary account.

Liquidity is a measure of how quickly an item can be converted to net income.

Which of the following is a plant asset?

Revenues and expenses may be transferred to the ________ account before their final transfer into the Owner,Capital account.

The entries that transfer the revenue,expense,and Owner,Withdrawals balances to the Owner,Capital account to prepare the company's books for the next period are called ________ entries.

Which of the following accounts will be included in a post-closing trial balance?

Reversing entries are dated on the first day of the new accounting period.

Which of the following steps must be completed before preparing the adjusted trial balance?

The beginning balance in the Sanchez,Capital account of a company was $10,000.The revenues and expenses were $240,000 and $120,000,respectively.During the year,Sanchez made withdrawals of $7,000.There were no new capital contributions during the year.The ending balance in Sanchez,Capital was $123,000.

Refer to the following adjusted trial balance. There were no new capital contributions during the year.What will the balance of the Smith,Capital Account be after the closing entries are posted?

A reversing entry is ________.

Which of the following accounts will be included in a post-closing trial balance?

Only permanent accounts appear on the post-closing trial balance.