Chapter 04 – The Accounting Cycle
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journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger
c.
analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment
data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger,
and prepare a post-closing trial balance
d.
prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions,
post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-04 – LO: 04–04
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
121. In the accounting cycle, the last step is
a.
preparing the financial statements
b.
journalizing and posting the adjusting entries
c.
preparing a post-closing trial balance
d.
journalizing and posting the closing entires
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-04 – LO: 04–04
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
122. Of the following steps of the accounting cycle, which step should be completed first?
a.
b.
c.
d.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
Chapter 04 – The Accounting Cycle
Copyright Cengage Learning. Powered by Cognero.
Page 53
a.
preparation of adjustments, adjusted trial balance, financial statements
b.
preparation of income statement, adjusted trial balance, balance sheet
c.
preparation of adjusted trial balance, cross-referencing, journalizing
d.
preparation of adjustments, adjusted trial balance, posting
ANSWER:
a
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-04 – LO: 04–04
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
126. The post-closing trial balance differs from the adjusted trial balance in that it does not
a.
take into account closing entries
b.
take into account adjusting entries
c.
include balance sheet accounts
d.
include income statement accounts
ANSWER:
d
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-05 – LO: 04–05
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
127. The natural business year is a
a.
fiscal year that ends when business activities are at their lowest point
b.
calendar year that ends when business activities are at their lowest point
c.
fiscal year that ends when business activities are at their highest point
d.
calendar year that ends when business activities are at their highest point
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
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Page 55
130. Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?
a.
preparing the adjusted trial balance
b.
posting to the general ledger
c.
preparing the financial statements
d.
preparing the closing entries
ANSWER:
b
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
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
131. An end-of-period spreadsheet includes columns for
a.
adjusting entries
b.
closing entries
c.
reversing entries
d.
adjusting and closing entries
ANSWER:
a
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
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
DATE MODIFIED:
10/16/2017 4:41 PM
132. When the end-of-period spreadsheet is complete, the adjustment columns should have
a.
total credits greater than total debits if a net income was earned
b.
total debits greater than total credits if a net loss was incurred
c.
total debits greater than total credits if a net income was earned
d.
total debits equal to total credits
ANSWER:
d
POINTS:
1
Chapter 04 – The Accounting Cycle
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Page 58
spreadsheet.
b.
The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period
spreadsheet.
c.
The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period
spreadsheet.
d.
Cash inflows exceed cash outflows.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
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
DATE MODIFIED:
10/16/2017 4:41 PM
138. Which of these titles would appear in the Income Statement columns of the end-of-period spreadsheet?
a.
Cash
b.
Prepaid Insurance
c.
Unearned Revenue
d.
Net Loss
ANSWER:
d
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
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
DATE MODIFIED:
10/16/2017 4:41 PM
139. Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet?
a.
Common Stock
b.
Service Revenue
c.
Unearned Revenue
d.
Cash
ANSWER:
b
POINTS:
1