Accounting Cycle
 
  1. Question: Which of the following statements is incorrect concerning the work sheet?

    A
    The work sheet is essentially a wore king tool of the accountant.

    B
    The work sheet is distributed to management and other interested parties.

    C
    The work sheet cannot be used as a basis for posting to ledger accounts.

    D
    Financial statements can be prepared directly the adjusting entries.

    Note: Not available
    1. Report
  2. Question: In a work sheet, net income is entered in the following columns:

    A
    income statement (Dr) and balance sheet (Dr).

    B
    income statement (Cr) and balance sheet (Dr).

    C
    income statement (Dr) and balance sheet (Cr).

    D
    income statement (Cr) and balance sheet (Cr).

    Note: Not available
    1. Report
  3. Question: An account that will have a zero balance after closing entries have been journalized and posted is:

    A
    Service Revenue.

    B
    Advertising Supplies

    C
    Prepaid Insurance

    D
    Accumulated Depreciation

    Note: Not available
    1. Report
  4. Question: When a net loss has occurred, Income Summary is:

    A
    debited and Owner's Capital is credited.

    B
    credited and Owner's Capital is debited.

    C
    debited and Owner's Drawing is credited.

    D
    credited and Owner's Drawing is debited.

    Note: Not available
    1. Report
  5. Question: The closing process involves separate entries to close (1) expenses, (2) revenues, and (4) income summary. The correct sequencing of the entries is:

    A
    (4), (3), (2), (1)

    B
    (1), (2), (3), (4)

    C
    (3), (1), (4), (2)

    D
    (3), (2), (1), (4)

    Note: Not available
    1. Report
  6. Question: Which types of accounts will appear in the post-closing trial balance?

    A
    Permanent (real) accounts.

    B
    Temporary (nominal) accounts.

    C
    Accounts shown in the income statement columns of a work sheet.

    D
    None of the above.

    Note: Not available
    1. Report
  7. Question: All of the following are required steps in the accounting cycle except:

    A
    journalizing and posting closing entries.

    B
    preparing financial statements.

    C
    journalizing the transactions.

    D
    preparing a work sheet.

    Note: Not available
    1. Report
  8. Question: 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:

    A
    debit Service Revenue \$100 and credit Accounts Receivable \$100.

    B
    debit Accounts Receivable \$100 and credit Service Revenue \$100.

    C
    debit Cash \$100 and credit Service Revenue \$100.

    D
    debit Accounts Receivable \$100 and credit Cash \$100.

    Note: Not available
    1. Report
  9. Question: In a classified balance sheet, assets are usually classified using the following categories:

    A
    current assets; long-term assets; property, plant, and equipment; and intangible assets.

    B
    current assets; long-term investments; property, plant, and equipment; and other assets.

    C
    current assets; long-term investments; tangible assets; and intangible assets.

    D
    current assets; long-term investments; property, plant, and equipment; and intangible assets.

    Note: Not available
    1. Report
  10. Question: Current assets are listed:

    A
    by liquidity.

    B
    by importance.

    C
    by longevity.

    D
    alphabetically

    Note: Not available
    1. Report
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