Accounting 2: Final Exam Review #2

The book value of accounts receivable at year end is an estimate of amounts receivable the business expects to collect during the next fiscal year

• true

• false

The amounts of dividends declared during the year is presented on the income statement.

• true

• false

A qualified retirement plan that allows tax-free withdrawal from the account is the

• 401(k)

• individual retirement account

• Roth individual retirement account

• 403(b)

The depreciation adjusting entry includes a debit to Depreciation Expense-Office Equipment and a credit to

• income summary

• office equipment

• retained earnings

• accumulated depreciation-office expense

The two types of journal entries needed to change general ledger account balances at the end of the fiscal period are

• adjusting and correcting entries

• closing and correcting entries

• adjusting and closing entries

The purpose of the post-closing trial balance is to prove the general ledger equality of debits and credits

• true

• false

Increasing operating revenue while keeping cost of merchandise sold the same will increase gross profit

• true

• false

A company having earnings per share of $14.50 is always more profitable than a company having earnings per share of $3.25

• true

• false

A system provided by the federal government for making federal tax deposits is the

• employment deposit system (EDS)

• federal tax deposit system

• electronic federal tax payment system (EFTPS)

• none of these

After closing entries have been posted, the accounts that remain open are the

• assets, liability, and cost accounts

• asset, liability, and dividend accounts

• asset, liability, capital stock, and retained earnings accounts

• asset, liability, and expense accounts