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An optional step in the accounting cycle 1. Which of the following is an optional step in the accounting cycle? a. Adjusting entries b. Closing entries c. Correcting entries d. Reversing entries 2. Which one of the following statements concerning the accounting cycle is incorrect? a. The accounting cycle includes journalizing transactions and posting to ledger accounts. b. The accounting cycle includes only one optional step. c. T ...

Other / Other 31 Mar 2016

If errors occur in the recording process 1. The two optional steps in the accounting cycle are preparing a. a post-closing trial balance and reversing entries. b. a worksheet and post-closing trial balances. c. reversing entries and a worksheet. d. an adjusted trial balance and a post-closing trial balance. 2. The first required step in the accounting cycle is a. reversing entries. b. journalizing transactions in the book of or ...

Other / Other 31 Mar 2016

The subtotal of the first asset classification on the 2012 Statement 1. The subtotal of the first asset classification on the 2012 Statement of Financial Position is: a. ¥10,190 b. ¥9,310 c. ¥264 d. ¥3,690 2. The subtotal of the last equity and liabilities classification on the 2012 Statement of Financial Position is: a. ¥1,925 b. ¥1,311 c. ¥13,063 d. ¥1,444 3. Which of the following is in the proper ...

Other / Other 31 Mar 2016

A post-closing trial balance should be prepared 1. A post-closing trial balance should be prepared a. before closing entries are posted to the ledger accounts. b. after closing entries are posted to the ledger accounts. c. before adjusting entries are posted to the ledger accounts. d. only if an error in the accounts is detected. 2. A post-closing trial balance will show a. zero balances for all accounts. b. zero balances for st ...

Other / Other 31 Mar 2016

The income statement for the year 2011 of Poole Co. 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) The entry to close the revenue account includes a a. ...

Other / Other 31 Mar 2016

Closing entries are necessary for 1. The permanent accounts appear on which financial statement? a. Statement of Financial Position. b. Income Statement. c. Retained Earning Statements. d. Statement of Cash Flows. 2. Closing entries are necessary for a. permanent accounts only. b. temporary accounts only. c. both permanent and temporary accounts. d. permanent or real accounts only. 3. Each of the following accounts is ...

Other / Other 31 Mar 2016

The purpose of the post-closing trial balances is to prove the equality of the Statement 1. The post-closing trial balance only contains Statement of Financial Position account balances. 2. The purpose of the post-closing trial balances is to prove the equality of the Statement of Financial Position. 3. The order of the accounts in the post-closing trial balance is the same order as the accounts appearing in the Statement of Financ ...

Other / Other 31 Mar 2016

The information for preparing a trial balance 1. Preparing a worksheet involves a. two steps. b. three steps. c. four steps. d. five steps. 2. The adjustments entered in the adjustments columns of a worksheet are a. not journalized. b. posted to the ledger but not journalized. c. not journalized until after the financial statements are prepared. d. journalized before the worksheet is completed. 3. The information for p ...

Other / Other 31 Mar 2016

The entry to close the expense accounts 1. The income statement for the month of June, 2011 of Taylor Enterprises contains the following information: Revenues ₤7,000 Expenses: Wages Expense ₤2,000 Rent Expense 1,000 Supplies Expense 300 Advertising Expense 200 Insurance Expense 100 Total expenses 3,600 Net income ₤3,400 The entry to close the revenue account includes a a. debit to Income Sum ...

Other / Other 31 Mar 2016

Closing entries may be prepared from 1. Closing entries may be prepared from all but which one of the following sources? a. Adjusted balances in the ledger b. Income statement and statement of financial position columns of the worksheet c. statement of financial position d. Income and retained earnings statements 2. In order to close the Dividends account, the a. income summary account should be debited. b. income summary a ...

Other / Other 31 Mar 2016