Accounting Chapter 4

All of the following accounts will appear on the post-closing trial balance EXCEPT

depreciation expense.

During the accounting period, Cash was debited for $4,000, $3,000, and $1,000. Cash was also credited for $3,000, $500, and $100. The beginning balance of Cash was a $10,000 debit. What is the ending balance of Cash on the post-closing trial balance?

$14,400

When are the balances of temporary accounts set to zero?

At the end of the year

Which of the following accounts will NOT appear on the post-closing trial balance?

Fees earned

A business's yearly accounting period is called the

Fiscal year

On the work sheet, the Dividends balance in the Adjusted Trial Balance Debit column will flow into the

statement of stockholders' equity.

The following amounts were taken from a company's balance sheet: Total assets $100,000 Total liabilities 20,000 Total stockholders' equity 80,000 Current assets 10,000 Current liabilities 5,000 The company's working capital is

$5,000

Which of the following is true regarding the end-of-period spreadsheet?

Amounts are read across a row and added or subtracted to determine the amounts to insert in the Adjusted Trial Balance columns.

Which of the following are examples of subsections found on a classified balance sheet?

Current assets; long-term liabilities; property, plant, and equipment

Which of these does NOT represent a decrease in net cash received on an employee's paycheck?

Gross Wages

Why do companies base their fiscal year on a natural business cycle?

It's at the low point in the operating cycle and provides time to analyze operations and prepare financial statements

Which of the following is an example of a fixed asset?

Land

The last step of the accounting cycle is to

Prepare a post-closing trial balance

Which of the following accounts will not be closed at the end of the accounting cycle?

Real accounts

Which of the following accounts will be closed with a debit?

Rent Revenue

All of the following accounts/account types are closed at the end of the accounting period EXCEPT

Retained Earnings.

Why should investors and others be careful in interpreting partial-year reports for companies that use the natural business year for their fiscal year?

The operations of the companies vary significantly throughout the fiscal year.

What is the major difference between the post-closing trial balance and the other two trial balances?

The post-closing trial balance is the only one to include only real accounts.

The balance of the dividends account on the adjusted trial balance of the end-of-period spreadsheet flows into which of the following financial statements?

The statement of stockholders' equity'

The journal entry required to close the dividends account includes

a debit to Retained Earnings and a credit to Dividends.

The first step of the accounting cycle is to

analyze transactions and record them in the journal.

Working capital is

the excess of the current assets of a business over its current liabilities.

Of the following, which step is not a requirement during the accounting cycle?

An end-of-period spreadsheet is prepared.

On the work sheet, the cash balance in the Adjusted Trial Balance Debit column will flow into the

Balance Sheet

The journal entry to record $4,500 cash received from clients on account would include a

credit to Accounts Receivable for $4,500

The numerator in the current ratio calculation is

current assets

All of the following statements are true regarding retained earnings except

the first item normally presented on the statement of stockholders' equity is the balance of retained earnings at the end of the period

Supplies had a beginning balance of $4,000. A physical count at the end of the accounting period revealed $2,500 supplies on hand. What adjustment amount will appear for Supplies in the Adjustments section of the end-of-period spreadsheet?

$1,500 credit

Total liabilities and stockholders' equity equal $44,750, total current assets equal $19,800, land equals $15,000, and accumulated depreciation—equipment equals $1,550. What is the amount of equipment on the balance sheet?

$11,500

Accounting Cycle From the following list of steps in the accounting cycle, identify what two steps are missing. -Transactions are analyzed and recorded in the journal. -An unadjusted trial balance is prepared. -Adjustment data are assembled and analyzed. -An optional end-of-period spreadsheet is prepared. -Adjusting entries are journalized and posted to the ledger. -An adjusted trial balance is prepared. -Closing entries are journalized and posted to the ledger. -A post-closing trial balance is prepared. Select the steps in the accounting cycle in their proper order in order and include the two missing steps.

1.transactions are analyzed and recorded in the journal. 2. transactions are posted to the ledger 3. an unadjusted trial balance is prepared 4. adjustment data are assembled and analyzed 5. an optional end of period speadsheet is prepared 6. adjusting entries are journalized and posted to the ledger 7. an adjusted trial balance is prepared 8. financial statements are prepared 9. closing entries are journalized and posted to the ledger 10. a post closing trial balance is prepared

The following amounts were taken from a company's balance sheet: Total assets $100,000 Total liabilities 20,000 Total stockholders' equity 80,000 Current assets 10,000 Current liabilities 5,000 The company's current ratio is

2.0

On the end-of-period spreadsheet, Accumulated Depreciation has a balance of $600 in the Unadjusted Trial Balance column and an adjustment of $200 in the Adjustments Credit column. What amount should appear for Accumulated Depreciation in the Adjusted Trial Balance column?

A credit of $800

The following items appear on the adjusted trial balance of Barker Company: Fees Earned | 18,791 Rent Expense 4,600 | Wages Expense 5,678 | Dividends 440 | Which of the following will be included in the second closing entry?

Credit to Dividends for $440.

Which of the following is not an actual step in the accounting cycle?

Decisions of managers are made after reviewing the financial statements.

Which of the following is the last step of the posting process?

Enter the ledger account number in the Post. Ref. column of the journal.

Revenue accounts appear on

income statement

Year-to-date summaries on a paycheck stub are similar to the way

income statement accounts accumulate revenues and expenses over a period.