Recent Question

The step in the accounting cycle that is performed on a periodic basis 1. A double rule applied to accounts in the ledger during the closing process implies that a. the account is an income statement account. b. the account is a statement of financial position account. c. the account balance is not zero. d. a mistake has been made, since double ruling is prescribed. 2. The heading for a post-closing trial balance has a date lin ...

Other / Other 31 Mar 2016

The balance that would be reported for equity 1. The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2011: Accounts payable ¥ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Share Capital-ordinary 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance ex ...

Other / Other 31 Mar 2016

The steps in the preparation of a worksheet 1. If a company utilizes reversing entries, they will a. be made at the beginning of the next accounting period. b. not actually be posted to the general ledger accounts. c. be made before the post-closing trial balance. d. be part of the adjusting entry process. 2. The steps in the preparation of a worksheet do not include a. analyzing documentary evidence. b. preparing a trial bala ...

Other / Other 31 Mar 2016

The use of reversing entries 1. Current liabilities a. are obligations that the company is to pay within the forthcoming year. b. are listed in the statement of financial position in order of their expected maturity. c. are listed in the statement of financial position starting with accounts payable. d. should not include long-term debt that is expected to be paid within the next year. 2. The use of reversing entries a. is a req ...

Other / Other 31 Mar 2016

Which account will appear last under the current assets 1. Which account will appear last under the current assets classification on the Statement of Financial Position? a. Accounts Receivable. b. Prepaid Expenses. c. Short-term investments. d. cash. 2. Which of the following classification appears last in the Statement of Financial Position? a. Non-current Liabilities. b. Equity. c. Current Liabilities. d. Reserves. 3. Wh ...

Other / Other 31 Mar 2016

An unacceptable way to make a correcting entry 1. A correcting entry a. must involve one statement of financial position account and one income statement account. b. is another name for a closing entry. c. may involve any combination of accounts. d. is a required step in the accounting cycle. 2. An unacceptable way to make a correcting entry is to a. reverse the incorrect entry. b. erase the incorrect entry. c. compare the incor ...

Other / Other 31 Mar 2016

The sub-classifications for assets on the company’s classified statement of financial position 1. The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2011: Accounts payable ¥ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Share capital-ordinary 42,000 Dividends 14,000 Depre ...

Other / Other 31 Mar 2016

Liabilities are generally classified on a statement of financial position 1. Liabilities are generally classified on a statement of financial position as a. small liabilities and large liabilities. b. present liabilities and future liabilities. c. tangible liabilities and intangible liabilities. d. current liabilities and non-current liabilities. 2. Which of the following would not be classified a Non-current liability? a. Current ma ...

Other / Other 31 Mar 2016

The total dollar amount of assets to be classified as current assets 1. The following information (in thousands) is for Zháng Office Supplies: Zháng Office Supplies Staement of Financial Position December 31, 2011 Trademark ¥70,000 Share Capital ¥120,000 Land ¥90,000 Retained Earnings 250,000 Building ¥100,000 ¥370,000 Less Accum. Depreciation (20,000) 80,000 170,000 Land held for ...

Other / Other 31 Mar 2016

A post-closing trial balance is prepared 1. The income statement for the year 2011 of Poole Co. contains the following information: Revenues $70,000 Expenses: Wages Expense $45,000 Rent Expense 12,000 Advertising Expense 6,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 73,500 Net income (loss) $(3,500) After all closing entries have been posted, the Income Summary ac ...

Other / Other 31 Mar 2016