loader  Loading... Please wait...

Question(s) / Instruction(s):

78. 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 owner's equity statement. d. the work sheet.

79. Which one of the following is an optional step in the accounting cycle of a business enterprise? a. Analyze business transactions b. Prepare a work sheet c. Prepare a trial balance d. Post to the ledger accounts

80. 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.

81. 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 82. 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

83. 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

84. The two optional steps in the accounting cycle are preparing a. a post-closing trial balance and reversing entries. b. a work sheet and post-closing trial balances. c. reversing entries and a work sheet. d. an adjusted trial balance and a post-closing trial balance.

85. 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.

86. Speedy Bike Company received a $640 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $460 and a credit to Service Revenue $460. The correcting entry is a. Debit Cash, $640; Credit Accounts Receivable, $640. b. Debit Cash, $180 and Accounts Receivable, $460; Credit Service Revenue, $640. c. Debit Cash, $180 and Service Revenue, $460; Credit Accounts Receivable, $640. d. Debit Accounts Receivable, $640; Credit Cash, $180 and Service Revenue, $460.

87. 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.

88. 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.

89. 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.

90. Cole Company paid the weekly payroll on January 2 by debiting Wages Expense for $50,000. The accountant preparing the payroll entry overlooked the fact that Wages Expense of $40,000 had been accrued at year end on December 31. The correcting entry is a. Wages Payable 40,000 Cash 40,000 b. Cash 10,000 Wages Expense 10,000 c. Wages Payable 40,000 Wages Expense 40,000 d. Cash 40,000 Wages Expense 40,000

91. Tyler Company paid $430 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $340 and a credit to Accounts Receivable, $340. The correcting entry is a. Accounts Payable 430 Cash 430 b. Accounts Receivable 340 Cash 340 c. Accounts Receivable 340 Accounts Payable 340 d. Accounts Receivable 340 Accounts Payable 430 Cash 770

92. A lawyer collected $950 of legal fees in advance. He erroneously debited Cash for $590 and credited Accounts Receivable for $590. The correcting entry is a. Cash 590 Accounts Receivable 360 Unearned Revenue 950 b. Cash 950 Service Revenue 950 c. Cash 360 Accounts Receivable 590 Unearned Revenue 950 d. Cash 360 Accounts Receivable 360

93. Office Equipment is classified in the balance sheet as a. a current asset. b. property, plant, and equipment. c. an intangible asset. d. a long-term investment.

94. A current asset is a. the last asset purchased by a business. b. an asset which is currently being used to produce a product or service. c. usually found as a separate classification in the income statement. d. expected to be realized in cash, sold or consumed within one year of the balance sheet or the company's operating cycle, whichever is longer.

95. An intangible asset a. derives its value from the rights and privileges it provides the owner. b. is worthless because it has no physical substance. c. is converted into a tangible asset during the operating cycle. d. cannot be classified on the balance sheet because it lacks physical substance.

96. Liabilities are generally classified on a balance sheet as a. small liabilities and large liabilities. b. present liabilities and future liabilities. c. tangible liabilities and intangible liabilities. d. current liabilities and long-term liabilities.

97. Which of the following would not be classified a long-term liability? a. Current maturities of long-term debt b. Bonds payable c. Mortgage payable d. Lease liabilities

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$4.00

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494