Chapter 04 – The Accounting Cycle
Copyright Cengage Learning. Powered by Cognero.
Page 21
ANSWER:
True
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04–APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
57. The end-of-period spreadsheet is a tool that accountants can use to summarize adjusting entries and the account
balances for the financial statements.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04–APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
58. The trial balance may be listed on the end-of-period spreadsheet instead of being prepared separately.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04–APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.08 – Closing Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
Chapter 04 – The Accounting Cycle
Copyright Cengage Learning. Powered by Cognero.
Page 24
the Balance Sheet columns.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04–APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
65. Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet
credit column.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP1 – LO: 04–APP1
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
66. If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and
$29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.
a.
True
b.
False
ANSWER:
RATIONALE:
POINTS:
DIFFICULTY:
Chapter 04 – The Accounting Cycle
Copyright Cengage Learning. Powered by Cognero.
Page 26
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-06 – LO: 04–06
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.23 – Financial Statement Analysis
ACCT.AICPA.FN-03 – Measurement
BUSPROG – Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
70. The current ratio is more useful than working capital in comparing across companies or with industry averages.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Bloom’s: Understanding
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-06 – LO: 04–06
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.23 – Financial Statement Analysis
ACCT.AICPA.FN-03 – Measurement
BUSPROG – Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
71. A reversing entry recorded on the first day of the current accounting period is exactly the same as the related adjusting
entry from the last day of the prior accounting period.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-APP2 – LO: 04–APP2
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.AICPA.FN-03 – Measurement
BUSPROG – Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
Copyright Cengage Learning. Powered by Cognero.
Page 27
72. What is the major difference between the unadjusted trial balance and the adjusted trial balance?
a.
The adjusted trial balance will show the net income (loss) as an additional account.
b.
Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing
even if it is not in balance.
c.
The adjusted trial balance includes the postings of the adjustments for the period in the balance of the
accounts.
d.
The adjusted trial balance will be used to record the adjustments for the period.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-01 – LO: 04–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.08 – Closing Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
73. Once the adjusting entries are posted, the adjusted trial balance is prepared to
a.
verify that the debits and credits are in balance
b.
verify that the net income correctly flows into the statement of stockholders’ equity from the income statement
c.
verify that the net income (loss) is correct for the period
d.
verify the correct flow of accounts into the financial statements
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-01 – LO: 04–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.08 – Closing Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
74. Accumulated Depreciation appears on the
a.
balance sheet in the current assets section
b.
balance sheet in the property, plant, and equipment section
c.
balance sheet in the long-term liabilities section
d.
income statement as an operating expense
Chapter 04 – The Accounting Cycle
Copyright Cengage Learning. Powered by Cognero.
Page 28
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-02 – LO: 04–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
75. Notes receivable due in 390 days appear on the
a.
balance sheet in the current assets section
b.
balance sheet in the noncurrent assets section
c.
balance sheet in the current liabilities section
d.
income statement as an expense
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-02 – LO: 04–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
76. Unearned Fees appear on the
a.
balance sheet in the current assets section
b.
balance sheet as a current liability
c.
balance sheet in the stockholders’ equity section
d.
income statement as revenue
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-02 – LO: 04–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
Chapter 04 – The Accounting Cycle
Copyright Cengage Learning. Powered by Cognero.
Page 30
d.
the beginning balance of retained earnings
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-02 – LO: 04–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.ACBSP.APC.10 – Internal Control
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
80. The retained earnings statement should be prepared
a.
before the income statement and after the balance sheet
b.
before the income statement and balance sheet
c.
after the income statement and balance sheet
d.
after the income statement and before the balance sheet
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-02 – LO: 04–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
81. The income statement should be prepared
a.
before the retained earnings statement and balance sheet
b.
after the retained earnings statement and before the balance sheet
c.
after the retained earnings statement and balance sheet
d.
after the balance sheet and before the retained earnings statement
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False