Accounting Cycle, Accounting

Accounting Cycle

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
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
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
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
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
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
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
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
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
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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Question: Which of the following statements is incorrect concerning the work sheet?

Question: In a work sheet, net income is entered in the following columns:

Question: An account that will have a zero balance after closing entries have been journalized and posted is:

Question: When a net loss has occurred, Income Summary is:

Question: The closing process involves separate entries to close (1) expenses, (2) revenues, and (4) income summary. The correct sequencing of the entries is:

Question: Which types of accounts will appear in the post-closing trial balance?

Question: All of the following are required steps in the accounting cycle except:

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:

Question: In a classified balance sheet, assets are usually classified using the following categories:

Question: Current assets are listed: