Post-Lecture, Question 1
To enter a net income for the period into a work sheet requires an entry to the:
balance sheet debit column and the balance sheet credit column.
income statement debit column and the income statement credit column.
income statement debit column and the balance sheet credit column.
income statement credit column and the balance sheet debit column.
Post-Lecture, Question 2
Income Summary has a credit balance of $12,000 after closing revenues and expenses. The entry to close Income Summary is:
credit Income Summary $12,000, debit the owner's drawing account $12,000.
debit Income Summary $12,000, credit the owner's drawing account $12,000.
debit Income Summary $12,000, credit the owner's capital account $12,000.
credit Income Summary $12,000, debit the owner's capital account $12,000.
Post-Lecture, Question 3
The purpose of the post-closing trial balance is to:
prove the equality of the income statement account balances that are carried forward into the next accounting period.
list all the balance sheet accounts in alphabetical order for easy reference.
prove that no mistakes were made.
prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
Post-Lecture, Question 4
Which of the following steps in the accounting cycle may be performed more frequently than annually?
journalize closing entries
prepare a post-closing trial balance
post closing entries
prepare a trial balance
Post-Lecture, Question 5
On September 23, Reese Company received a $350 check from Mike Moluf for services to be performed in the future. The bookkeeper for Reese Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should:
debit Accounts Receivable $350 and credit Cash $350.
debit Cash $350 and credit Unearned Service Revenue $350.
debit Accounts Receivable $350 and credit Service Revenue $350
debit Accounts Receivable $350 and credit Unearned Service Revenue $350.
Post-Lecture, Question 6
Current liabilities 4:
are obligations that the company expects to pay within the coming year.
must reasonably be expected to be paid within one year or the operating cycle, whichever is shorter.
should not include long-term debt that is expected to be paid within the next year.
are listed in the balance sheet in order of their expected maturity.
Post-Lecture, Question 7
The use of reversing entries:
simplifies the recording of subsequent transactions.
is required for all adjusting entries.
is a required step in the accounting cycle.
changes the amount reported in the financial statements.
Self Study Quiz, Question 1
Which of the following statements is incorrect concerning the worksheet?
The worksheet is essentially a working tool of the accountant.
The worksheet is distributed to management and other interested parties.
The worksheet cannot be used as a basis for posting to ledger accounts.
Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries.
Self Study Quiz, Question 2
In a worksheet, net income is entered in the following columns:
income statement (Dr) and balance sheet (Dr).
income statement (Dr) and balance sheet (Cr).
income statement (Cr) and balance sheet (Cr).
income statement (Cr) and balance sheet (Dr).
Self Study Quiz, Question 3
An account that will have a zero balance after closing entries have been journalized and posted is:
Advertising Supplies.
Accumulated Depreciation.
Service Revenue.
Prepaid Insurance.
Self Study Quiz, Question 4
When a net loss has occurred, Income Summary is:
credited and Owner's Drawing is debited.
debited and Owner's Capital is credited.
credited and Owner's Capital is debited.
debited and Owner's Drawing is credited.
Self Study Quiz, Question 5
The closing process involves separate entries to close (1) expenses, (2) drawings, (3) revenues, and (4) income summary. The correct sequencing of the entries is:
(1), (2), (3), (4)
(3), (1), (4), (2)
(4), (3), (2), (1)
(3), (2), (1), (4)
Self Study Quiz, Question 6
Which types of accounts will appear in the post-closing trial balance?
Permanent (real) accounts.
Temporary (nominal) accounts.
Accounts shown in the income statement columns of a worksheet.
None of the above.
Self Study Quiz, Question 7
All of the following are required steps in the accounting cycle except:
journalizing and posting closing entries.
journalizing the transactions.
preparing financial statements.
preparing a worksheet.
Self Study Quiz, Question 8
Cash of $100 received at the time the service was provided was journalized and posted as a debit to Cash $100 and a credit to Accounts Receivable $100. Assuming the incorrect entry is not reversed, the correcting entry is:
debit Accounts Receivable $100 and credit Cash $100.
debit Accounts Receivable $100 and credit Service Revenue $100.
debit Service Revenue $100 and credit Accounts Receivable $100.
debit Cash $100 and credit Service Revenue $100.
Self Study Quiz, Question 9
In a classified balance sheet, assets are usually classified using the following categories:
current assets; long-term investments; property, plant, and equipment; and intangible assets.
current assets; long-term investments; property, plant, and equipment; and other assets.
current assets; long-term assets; property, plant, and equipment; and intangible assets.
current assets; long-term investments; tangible assets; and intangible assets.
Self Study Quiz, Question 10
Current assets are listed:
by liquidity.
by importance.
alphabetically.
by longevity.
Self Study Quiz, Question 11
On December 31, Frank Voris Company correctly made an adjusting entry to recognize $2,000 of accrued salaries payable. On January 8 of the next year, total salaries of $3,400 were paid. Assuming the correct reversing entry was made on January 1, the entry on January 8 will result in a credit to Cash $3,400 and the following debit(s):
Salaries Payable $3,400.
Salaries Expense $3,400.
Salaries Payable $2,000 and Salaries Expense $1,400.
Salaries Payable $1,400, and Salaries Expense $2,000.
Solution
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