Of the following steps of the accounting cycle, which step should be completed last?

An adjusted trial balance is prepared.

Transactions are posted to the ledger.

An unadjusted trial balance is prepared.

Adjusting entries are journalized and posted to the ledger.

Once the adjusting entries are posted, the adjusted trial balance is prepared to

verify that the debits and credits are in balance

verify that the net income correctly flows into the statement of owner’s equity from the income statement

verify that the net income (loss) is correct for the period

verify the correct flow of accounts into the financial statements

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

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

B. Closing entries are entered in the Adjustments columns.

C. The Adjustments columns need not be totaled.

D. The difference in the totals of the Adjustments columns indicates the net income or loss for the period.

Using an end-of-period spreadsheet, the flow of accounting information moves from the

B. adjusted trial balance to the financial statements.

A. financial statements to the adjusted trial balance.

C. unadjusted trial balance to the financial statements.

D. adjusting entries straight to the financial statements.

Which of the following is not true regarding the flow of information from the adjusted trial balance on the end-of-period spreadsheet?

D. The income summary balance flows into the income statement.

A. The asset and liability account balances flow into the balance sheet.

B. The retained earnings and dividends account balances flow into the retained earnings statement.

C. The revenue and expense account balances flow into the income statement.

The listing of expenses on the income statement is ordered

C. by size, beginning with the largest item and putting miscellaneous expense as the last item.

A. by size, beginning with the smallest item.

B. by account number in the general ledger.

All of the following statements are true regarding retained earnings except:

C. the first item normally presented on the retained earnings statement is the balance of retained earnings at the end of the period.

A. the amount of dividends is deducted from net income to arrive at the retained earnings ending balance.

B. the retained earnings beginning balance is usually the retained earnings ending balance from the previous period.

D. the amount of dividends is added to net loss to arrive at the retained earnings ending balance.

Total revenues equal $25,700, and total expenses equal $17,500. What is the amount of net income or net loss?

D. None of these choices are correct.

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

D. None of these choices are correct.

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?

a. The retained earnings and dividends account balances flow into the balance sheet

b. The asset and liability account balances flow into the retained earnings statement

c. The revenue and expense account balances flow into the retained earnings statement

d. The revenue and expense account balances flow into the income statement

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

d.Current Assets; Long-Term Liabilities; Property, Plant, and Equipment

a.Owner's Equity; Liabilities; Property, Plant, and Equipment

b.Assets; Current Assets; Long-Term Liabilities

c.Liabilities; Long-Term Liabilities; Owner's Equity

The purpose of the post-closing trial balance is

b. to verify that the ledger is in balance at the beginning of the next period.

a. to verify that the financial statements are prepared.

c to verify that the end-of-period spreadsheet is in balance.

d. All of these choices are correct.

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

B. Decisions of managers are made after reviewing the financial statements.

A. Transactions are analyzed and recorded in the journal.

C. Financial statements are prepared.

D. Closing entries are journalized and posted to the ledger.

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

c.An end-of-period spreadsheet is prepared.

a.A post-closing trial balance is prepared.

b.Transactions are posted to the ledger.

d.An unadjusted trial balance is prepared.

The journal entry to record $6,000 cash received for$7,000 services performed would include

a. a credit to Fees Earned for $7,000.

b. a credit to Accounts Receivable for$6,000.

c. a credit to Accounts Receivable for $1,000.

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

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

a.The unadjusted and adjusted trial balances are optional reports.

b.The post-closing trial balance is prepared to verify the equality of debits and credits.

c.The unadjusted and adjusted trial balances are not part of the accounting cycle.

The post-closing trial balance differs from the adjusted trial balance in that it

a. does not include income statement accounts.

b. does not include balance sheet accounts.

c. does not take into account closing entries.

d. does not take into account adjusting entries.

Principles of Accounting I Module 4 Quiz

Authored by Finn Schrock

Business

University

Used 5+ times

Principles of Accounting I Module 4 Quiz

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

69 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

An end-of-period spreadsheet heading is dated for a period of time.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The end-of-period spreadsheet

is an integral part of the accounting cycle

eliminates the need to rewrite the financial statements

is a working paper that is required

is used to summarize account balances and adjustments for the financial statements

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

During the closing process, income statement accounts are closed and end the period with a zero balance.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Balance sheet accounts are referred to as real or permanent accounts.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the goal of the closing process?

to verify that all adjustments have been made

to move all income statement and drawing accounts to the owner’s capital account

to move all equity accounts to the owner’s capital account

to end the accounting period with a profit

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these accounts would be closed by posting a debit to it?

Unearned Revenue

Fees Earned

Owner’s Drawing

Miscellaneous Expense

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Classify the following journal entry:
Unearned Revenue 985
Fees Earned 985

transaction entry

adjusting entry

closing entry

none of these choices

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Popular Resources on Wayground

7 questions

History of Valentine's Day

Interactive video

•

4th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

15 questions

Valentine's Day Trivia

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

Discover more resources for Business

18 questions

Valentines Day Trivia

Quiz

•

3rd Grade - University

12 questions

IREAD Week 4 - Review

Quiz

•

3rd Grade - University

23 questions

Subject Verb Agreement

Quiz

•

9th Grade - University

5 questions

What is Presidents' Day?

Interactive video

•

10th Grade - University

7 questions

Renewable and Nonrenewable Resources

Interactive video

•

4th Grade - University

20 questions

Mardi Gras History

Quiz

•

6th Grade - University

10 questions

The Roaring 20's Crash Course US History

Interactive video

•

11th Grade - University

17 questions

Review9_TEACHER

Quiz

•

University

Principles of Accounting I Module 4 Quiz

An end-of-period spreadsheet heading is dated for a period of time.

The end-of-period spreadsheet

During the closing process, income statement accounts are closed and end the period with a zero balance.

Balance sheet accounts are referred to as real or permanent accounts.

What is the goal of the closing process?

Which of these accounts would be closed by posting a debit to it?

Classify the following journal entry:
Unearned Revenue 985
Fees Earned 985

Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin Company's working capital is

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet:
Net income for the period is

Use the adjusted trial balance for Stockton Company to answer the questions that follow.
Determine the net income (loss) for the period.

Access all questions and much more by creating a free account

Popular Resources on Wayground

Discover more resources for Business

Principles of Accounting I Module 4 Quiz

An end-of-period spreadsheet heading is dated for a period of time.

The end-of-period spreadsheet

During the closing process, income statement accounts are closed and end the period with a zero balance.

Balance sheet accounts are referred to as real or permanent accounts.

What is the goal of the closing process?

Which of these accounts would be closed by posting a debit to it?

Classify the following journal entry: Unearned Revenue 985 Fees Earned 985

Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,120, and total liabilities of $205,300. Astin Company's working capital is

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Net income for the period is

Use the adjusted trial balance for Stockton Company to answer the questions that follow. Determine the net income (loss) for the period.

Access all questions and much more by creating a free account

Popular Resources on Wayground

Discover more resources for Business

Classify the following journal entry:
Unearned Revenue 985
Fees Earned 985

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet:
Net income for the period is

Use the adjusted trial balance for Stockton Company to answer the questions that follow.
Determine the net income (loss) for the period.