Question 1

The last two columns generally found on the right side of the worksheet are the income statement columns.

Accepted Answer

A) True 
 B)False

Question 2

The adjusting process zeroes out all revenue accounts and all expense accounts.

Accepted Answer

A) True 
 B)False

Question 3

The Accumulated Depreciation account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 4

Salaries Payable, Interest Payable, and Unearned Revenue are examples of ________.

Accepted Answer

A)   short-term investments
B)   fixed assets
C)   current liabilities
D)   long-term liabilitiesE) None of the above
F) A) and C)

Question 5

The Office Supplies account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is an accurate interpretation of the current ratio?

Accepted Answer

A)   A current ratio of 1.5 or higher is considered a high-risk ratio.
B)   A current ratio below 1.00 is considered a good and safe ratio.
C)   A current ratio of 2.0 indicates strong ability to pay current liabilities.
D)   A current ratio of 0.60 or lower is a good and safe ratio.E) C) and D)
F) All of the above

Question 7

Which of the following accounts will have an ending balance after the closing process is completed?

Accepted Answer

A)   Owner, Withdrawals
B)   Rent Expense
C)   Accumulated Depreciation
D)   Service RevenueE) B) and C)
F) B) and D)

Question 8

Reversing entries are used in conjunction with ________.

Accepted Answer

A)   accrual-type adjustments
B)   closing entries
C)   GAAP
D)   Unearned Revenue and Prepaid RentE) B) and C)
F) C) and D)

Question 9

A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders' equity below.

Accepted Answer

A) True 
 B)False

Question 10

What is the result if the amount of net income for the year is less than the amount of the owner's withdrawals?

Accepted Answer

A)   Owner, Capital increases
B)   Cash balance decreases
C)   Cash balance increases
D)   Owner, Capital decreasesE) A) and D)
F) A) and B)

Exam 4: Completing the Accounting Cycle

The Accumulated Depreciation account is a permanent account.

Correct Answer
verified

Which of the following accounts will have an ending balance after the closing process is completed?

Correct Answer
verified

What is the result if the amount of net income for the year is less than the amount of the owner's withdrawals?

Correct Answer
verified

Salaries Payable, Interest Payable, and Unearned Revenue are examples of ________.

Correct Answer
verified

The Office Supplies account is a temporary account.

Correct Answer
verified

Reversing entries are used in conjunction with ________.

Correct Answer
verified

Which of the following statements is an accurate interpretation of the current ratio?

Correct Answer
verified

A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders' equity below.

Correct Answer
verified

The last two columns generally found on the right side of the worksheet are the income statement columns.

Correct Answer
verified

The adjusting process zeroes out all revenue accounts and all expense accounts.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

The Accumulated Depreciation account is a permanent account.

Correct AnswerverifiedShow Answer

Which of the following accounts will have an ending balance after the closing process is completed?

Correct AnswerverifiedShow Answer

What is the result if the amount of net income for the year is less than the amount of the owner's withdrawals?

Correct AnswerverifiedShow Answer

Salaries Payable, Interest Payable, and Unearned Revenue are examples of ________.

Correct AnswerverifiedShow Answer

The Office Supplies account is a temporary account.

Correct AnswerverifiedShow Answer

Reversing entries are used in conjunction with ________.

Correct AnswerverifiedShow Answer

Which of the following statements is an accurate interpretation of the current ratio?

Correct AnswerverifiedShow Answer

A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders' equity below.

Correct AnswerverifiedShow Answer

The last two columns generally found on the right side of the worksheet are the income statement columns.

Correct AnswerverifiedShow Answer

The adjusting process zeroes out all revenue accounts and all expense accounts.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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