WorksheetsCOMPLETION OF THE ACCOUNTING CYCLE QUIZ
Total questions: 25
Worksheet time: 55mins
All of the following statements are correct except:
The work sheet cannot be used as a basis for posting to ledger accounts.
Financial statements can be prepared directly from the work sheet before journalizing and posting the adjusting entries.
The work sheet is distributed to management and other interested parties.
The work sheet is essentially a working tool of the accountant.
In what columns of the work sheets does net income appear?
Comprehensive Income (Dr) and Statement of Financial Position (Cr)
Comprehensive Income (Dr) and Statement of Financial Position (Dr)
Comprehensive Income (Cr) and Statement of Financial Position (Cr)
Comprehensive Income (Cr) and Statement of Financial Position (Dr)
After recording and posting the closing entries, which of the following accounts will have a zero balance?
Professional fees
Advertising Supplies
Prepaid Rent
Allowance for Doubtful accounts
When a net loss has occurred, Income Summary is:
Credited and owner's drawing is debited.
Debited and owner's drawing is credited.
Credited and owner's capital is debited.
Debited and owners capital is credited.
The closing process involves separate entries to close (1) expenses, (2) drawings, (3) revenues, and (4) income summary. The correct sequencing of the entries is:
4,3,2,1
1,2,3,4
3,1,4,2
3,2,1,4
The post-closing trial balance includes which of the following accounts?
Permanent (real) accounts.
Temporary (nominal) accounts.
Accounts shown in the income statement
None of the above.
Which of the following is not a required step in the accounting cycle?
Financial statement preparation.
Work sheet preparation
Recording and posting closing entries.
Journalizing the transactions.
Cash of 10,000 received at the time the service was rendered was journalized and posted as a debit to Cash 10,000 and a credit to Accounts Receivable 10,000. The correcting entry is:
Dr Service Revenue 10,000 and Cr Accounts Receivable 10,000
Dr. Accounts Receivable 10,000 and Cr Service Revenue 10,000
Dr Cash 10,000 and Cr Service Revenue 10,000
Dr. Accounts Receivable 10,000 and Cr Cash 10,000
In a classified balance sheet, assets are usually classified using the following categories:
Current assets; long-term assets; property, plant, and equipment; and intangible assets.
Current assets; long-term investments; property, plant, and equipment; and other assets.
Current assets; long-term assets; tangible assets; and intangible assets.
Current assets; long-term investments; property, plant, and equipment; and intangible assets.
Current assets are arranged according to:
Liquidity
Importance
Longevity
Alphabetical order
A debit column total greater than the credit-column total under the Income Statement portion of the work sheet would mean:
The Income Summary account will have a credit balance after the nominal accounts are closed.
Mistakes were made in the preparation of the adjusted trial balance.
The company had a profitable year.
The company had a loss this year.
Why does the accountant find a work sheet useful?
It helps the accountant to organize data and compute the net income or loss for the period.
It helps the accountant prepare end-of-period financial statements.
It helps the accountant prepare adjusting and closing entries
All of these are benefits using a work sheet.
Which of the following should be closed to Income Summary?
Accumulated Depreciation
Withdrawals
Salary Expense
All of these
The post-closing trial balance of Laminie Bakery includes the account balances listed below. Which one(s) indicate a possible error?
Santos, Drawing, P9,780 debit balance.
Income Summary, P1,620 debit balance.
Interest Revenue, P3,000 credit balance.
All of these indicate errors.
Which situation indicates a net loss on the income statement?
Total debits exceeds a total credits
Total debits equal total credits
Total credits exceeds total debits
None of these
Supplies have a balance that is P960 less in the work sheet's Balance Sheet debit column, than in the work sheet's trial balance debit column. This would be the result of:
A P1,920 entry to Supplies Expense in the work sheet's Adjustments debit column.
A P960 entry to Supplies Expense in the work sheet's Adjustments credit column.
A P960 entry to Supplies in the work sheet's Adjustments credit column.
A P960 entry to Supplies in the work sheet's Adjustments debit column.
The accountant left two entries off the adjustments columns of the worksheet: * P800 of service revenue was not accrued
* P1200 of unearned revenue had been earned, but no entry was made. What should be the amount of net income if the incorrect net income was P46000?
P48000
P45600
P46400
P44000
Salary Expense on the worksheet's Trial Balance debit column has a P90,000 balance and a P112,500 balance on the work sheet's Income Statement debit column. The difference is due to:
An entry in the work sheet's Adjustments debit column for P90,000 to Salary Expense.
An entry in the work sheet's Adjustments debit column for P22,500 to Salary Expense.
An entry in the work sheet's Adjustments credit column for P22,500 to Salary Payable.
None of these.
On December 31, Palermo Company correctly made an adjusting entry to recognize P4,000 of accrued salaries payable. On January 8 of the next year, total salaries of P6,800 were paid. Assuming the correct reversing entry was made on January 1, the entry on January 8 will result in a credit to Cash P6,800, and the following debit(s).
Salaries Payable P2800 and Salaries Expense P4000
Salaries Payable P4000 and Salaries Expense P2800
Salaries Expense P6800
Salaries Payable P6800
Liabilities and owner's equity exceed the total assets on the balance sheet by P6,000. This could be the result of:
failure to close the withdrawals account of P6,000 to the capital account.
failure to close income summary accounts credit balance of P6,000 to the capital account.
failure to close the salary expense of P3,000 to the income summary account.
failure to post either side of a P1,500 cash purchase of office furniture.
IDENTIFICATION: Identify the word/words in the statement below, the line indicates the number of letters of the missing word/s. Use CAPITAL LETTERS in your answer.
1. (a) entries made at the end of an accounting period to ensure that the revenue recognition and matching principles are followed
IDENTIFICATION: Identify the word/words in the statement below, the line indicates the number of letters of the missing word/s. Use CAPITAL LETTERS in your answer.
2. (a) basis accounting, in which revenue is recorded only when cash is received and an expense is recorded only when cash is paid.
IDENTIFICATION: Identify the word/words in the statement below, the line indicates the number of letters of the missing word/s. Use CAPITAL LETTERS in your answer.
3. (a) expenses are paid in cash and recorded as assets before they are used or consumed.
IDENTIFICATION: Identify the word/words in the statement below, the line indicates the number of letters of the missing word/s. Use CAPITAL LETTERS in your answer.
4. (a) statements are financial statements prepared for period of less than a year.
IDENTIFICATION: Identify the word/words in the statement below, the line indicates the number of letters of the missing word/s. Use CAPITAL LETTERS in your answer.
5. (a) accounts is an account that is offset against an asset account on the balance sheet.
