Question Details

ACCT/257 ACCT257 ACCT 257 CHAP 05 MULTIPLE CHOICE QUESTIONS PART 3

MULTIPLE CHOICE QUESTIONS


93.	The balances that appear on the post-closing trial balance will match the
a.	income statement account balances after adjustments.
b.	balance sheet account balances after closing entries.
c.	income statement account balances after closing entries.
d.	balance sheet account balances after adjustments.

	94.	Which account listed below would be double ruled in the ledger as part of the closing process?
a.	Cash
b.	Retained Earnings
c.	Dividends
d.	Accumulated Depreciation

	95.	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 balance sheet account.
c.	the account balance is not zero.
d.	a mistake has been made, since double ruling is prescribed.

	96.	The heading for a post-closing trial balance has a date line that is similar to the one found on
a.	a balance sheet.
b.	an income statement.
c.	an stockholders' equity statement.
d.	the worksheet.

	97.	Which one of the following is usually prepared only at the end of a company's annual accounting period?
a.	Preparing financial statements
b.	Journalizing and posting adjusting entries
c.	Journalizing and posting closing entries
d.	Preparing an adjusted trial balance

	98.	The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is
a.	analyzing transactions.
b.	journalizing and posting adjusting entries.
c.	preparing a post-closing trial balance.
d.	posting to ledger accounts.
	99.	Which one of the following is an optional step in the accounting cycle of a business enterprise?
a.	Analyze business transactions
b.	Prepare a worksheet
c.	Prepare a trial balance
d.	Post to the ledger accounts

	100.	The final step in the accounting cycle is to prepare
a.	closing entries.
b.	financial statements.
c.	a post-closing trial balance.
d.	adjusting entries.

	101.	Which of the following steps in the accounting cycle would not generally be performed daily?
a.	Journalize transactions
b.	Post to ledger accounts
c.	Prepare adjusting entries
d.	Analyze business transactions

	102.	Which of the following steps in the accounting cycle may be performed more frequently than annually?
a.	Prepare a post-closing trial balance
b.	Journalize closing entries
c.	Post closing entries
d.	Prepare a trial balance

	103.	Which of the following depicts the proper sequence of steps in the accounting cycle?
a.	Journalize the transactions, analyze business transactions, prepare a trial balance
b.	Prepare a trial balance, prepare financial statements, prepare adjusting entries
c.	Prepare a trial balance, prepare adjusting entries, prepare financial statements
d.	Prepare a trial balance, post to ledger accounts, post adjusting entries

	104.	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.

	105.	The first required step in the accounting cycle is
a.	reversing entries.
b.	journalizing transactions in the book of original entry.
c.	analyzing transactions.
d.	posting transactions.

	106.	Correcting entries
a.	always affect at least one balance sheet account and one income statement account.
b.	affect income statement accounts only.
c.	affect balance sheet accounts only.
d.	may involve any combination of accounts in need of correction.

	107.	Speedy Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The correcting entry is
a.	debit Cash, $940; credit Accounts Receivable, $940.
b.	debit Cash, $450 and Accounts Receivable, $490; credit Service Revenue, $940.
c.	debit Cash, $450 and Service Revenue, $490; credit Accounts Receivable, $940.
d.	debit Accounts Receivable, $940; credit Cash, $450 and Service Revenue, $490.

	108.	If errors occur in the recording process, they 
a.	should be corrected as adjustments at the end of the period.
b.	should be corrected as soon as they are discovered.
c.	should be corrected when preparing closing entries.
d.	cannot be corrected until the next accounting period.

	109.	A correcting entry
a.	must involve one balance sheet 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.

	110.	An unacceptable way to make a correcting entry is to
a.	reverse the incorrect entry.
b.	erase the incorrect entry.
c.	compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts.
d.	correct it immediately upon discovery.

	111.	Cole Company paid the weekly payroll on January 2 by debiting Wages Expense for $45,000. The accountant preparing the payroll entry overlooked the fact that Wages Expense of $27,000 had been accrued at year end on December 31. The correcting entry is
a.	Wages Payable		27,000
		Cash			27,000
b.	Cash		18,000
		Wages Expense			18,000
c.	Wages Payable		27,000
		Wages Expense			27,000
d.	Cash		27,000
		Wages Expense			27,000

112.	Tyler Company paid $530 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $350 and a credit to Accounts Receivable, $350. The correcting entry is
a.	Accounts Payable		530
		Cash			530
b.	Accounts Receivable		350
		Cash			350
c.	Accounts Receivable		350
		Accounts Payable			350
d.	Accounts Receivable		350
	Accounts Payable		530
		Cash			880