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Quiz 4

  1. Which of the following sequences of actions describes the proper sequence of the accounting cycle?

    1. Post, record, analyze, prepare, close, adjust
    2. Analyze, record, post, adjust, prepare, close
    3. Prepare, record, post, adjust, analyze, close
    4. Enter, record, close, prepare, adjust, analyze

  2. The work sheet is a type of:

    1. ledger
    2. journal
    3. working paper
    4. financial statement

  3. Which of the following is shown directly on the work sheet?

    1. Ending owner’s capital
    2. Total assets
    3. Net income
    4. Total liabilities

  4. The work sheet can be used:

    1. to prepare financial statements
    2. to record adjusting entries
    3. to record closing entries
    4. for all of the above

  5. One important purpose of closing entries is to:

    1. adjust the accounts in the ledger
    2. set balance sheet accounts to zero in order to begin the next accounting period
    3. set income statement accounts to zero to begin the next accounting period
    4. summarize assets and liabilities

  6. In preparing closing entries, it is helpful to refer first to the:

    1. Adjustments columns of the work sheet
    2. Adjusted Trial Balance columns of the work sheet
    3. Income Statement columns of the work sheet
    4. general journal

  7. After all the closing entries have been posted, the balance of the Income Summary account should be:

    1. a debit if a net income has been earned
    2. a debit if a net loss has been incurred
    3. a credit if a net loss has been incurred
    4. zero

  8. After the closing entries have been posted, all of the following accounts have a zero balance except:

    1. Service Revenue Earned
    2. Depreciation Expense
    3. Unearned Service Revenue
    4. Service Wages Expense

  9. The post-closing trial balance:

    1. lists income statement accounts only
    2. lists balance sheet accounts only
    3. lists both income statement and balance sheet account
    4. is prepared before closing entries are posted to the ledger

  10. For which of the following adjustments would a reversing entry facilitate bookkeeping procedures?

    1. An adjustment for depreciation expense
    2. An adjustment to allocate prepaid insurance to the current period
    3. An adjustment made as a result of an inventory of supplies
    4. An adjustment for wages earned but not yet paid to employees

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