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WorksheetsAC41 Completing the Accounting Cycle Quiz
Total questions: 33
Worksheet time: 47mins
Name
Class
Date
1.
Arrange the Steps 1-5 of the Accounting cycle
a)
Analyzing transactions/source documents
b)
Journalizing Entries
c)
Posting to the Ledger
d)
Preparing an Unadjusted Trial Balance
e)
Preparing Worksheet and Adjusting Journal Entries
1)
2)
3)
4)
5)
2.
Arrange the Steps 6-10 of the Accounting Cycle
a)
Preparation of Financial Statements
b)
Adjusting Journal Entries are Journalized
c)
Preparing Closing Journal Entries
d)
Preparing a Post-closing Trial Balance
e)
Preparing Reversing Entries
1)
2)
3)
4)
5)
3.
A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.
a)
True
b)
False
4.
If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has net income.
a)
True
b)
False
5.
No permanent account balances are changed in the closing process.
a)
True
b)
False
6.
The balance of the depreciation expense account will appear in the income statement
debit column of a worksheet.
a)
True
b)
False
7.
After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.
a)
True
b)
False
8.
Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.
a)
True
b)
False
9.
Closing entries are journalized after adjusting entries have been journalized.
a)
True
b)
False
10.
The post-closing trial balance only contains Statement of Financial Position account balances.
a)
True
b)
False
11.
Cash and office supplies are both classified as current assets.
a)
True
b)
False
12.
A liability is classified as a current liability if the company is to pay it within the forthcoming
year.
a)
True
b)
False
13.
Reversing entries will always affect statement of financial position accounts.
a)
True
b)
False
14.
In one closing entry, the Withdrawals account is credited and Income Summary is debited.
a)
True
b)
False
15.
A business entity has only one accounting cycle over its economic existence.
a)
True
b)
False
16.
The amounts appearing on an income statement should agree with the amounts
appearing on the post-closing trial balance.
a)
True
b)
False
17.
After closing entries have been journalized and posted, all temporary accounts in the
ledger should have zero balances.
a)
True
b)
False
18.
The information for preparing a trial balance on a worksheet is obtained from
a)
a. financial statements.
b)
b. general ledger accounts.
c)
c. general journal entries.
d)
d. business documents.
19.
A worksheet is a multiple column form that facilitates the
a)
a. identification of events.
b)
b. measurement process.
c)
c. preparation of financial statements.
d)
d. analysis process.
20.
The Supplies account appears in which of the following debit columns of the worksheet?
a)
a. Trial balance
b)
b. Adjusted trial balance
c)
c. Statement of financial position
d)
d. All of these answer choices are correct.
21.
Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?
a)
a. Income statement columns
b)
b. Adjustments columns
c)
c. Trial balance columns
d)
d. Adjusted trial balance columns
22.
The net income (or loss) for the period
a)
a. is found by computing the difference between the income statement credit column and the statement of financial position credit column on the worksheet.
b)
b. cannot be found on the worksheet.
c)
c. is found by computing the difference between the income statement columns of the worksheet.
d)
d. is found by computing the difference between the trial balance totals and the adjusted trial balance totals.
23.
The permanent accounts appear on which financial statement?
a)
a. Statement of Financial Position.
b)
b. Income Statement.
c)
c. Retained Earnings Statement.
d)
d. Statement of Cash Flows.
24.
Closing entries are necessary for
a)
a. permanent accounts only.
b)
b. temporary accounts only.
c)
c. both permanent and temporary accounts.
d)
d. permanent or real accounts only.
25.
Closing entries
a)
a. are prepared before the financial statements.
b)
b. reduce the number of permanent accounts.
c)
c. cause the revenue and expense accounts to have zero balances.
d)
d. summarize the activity in every account.
26.
In order to close the Withdrawals account, the
a)
a. income summary account should be debited.
b)
b. income summary account should be credited.
c)
c. capital account should be credited.
d)
d. capital account should be debited.
27.
Which of the following is an optional step in the accounting cycle?
a)
a. Adjusting entries
b)
b. Closing entries
c)
c. Correcting entries
d)
d. Reversing entries
28.
Which of the following accounts does not appear in the Statement of Financial Position?
a)
a. Owner’s Capital
b)
b. Unearned Revenues
c)
c. Depreciation Expense
d)
d. Accounts Receivable
29.
The steps in the preparation of a worksheet do not include
a)
a. analyzing documentary evidence.
b)
b. preparing a trial balance on the worksheet.
c)
c. entering the adjustments in the adjustment columns.
d)
d. entering adjusted balances in the adjusted trial balance columns.
30.
Income Summary has a credit balance of $12,000 in J. Wenger Co. after closing revenues and expenses. The entry to close Income Summary is
a)
a. credit Income Summary $12,000, debit Wenger, Capital $12,000.
b)
b. credit Income Summary $12,000, debit Wenger, Withdrawal $12,000.
c)
c. debit Income Summary $12,000, credit Wenger, Withdrawal $12,000.
d)
d. debit Income Summary $12,000, credit Wenger, Capital $12,000.
31.
Which account will appear first under the current assets classification on the Statement of Financial Position?
a)
a. Accounts Receivable.
b)
b. Prepaid Expenses.
c)
c. Short-term investments.
d)
d. Cash.
32.
Liabilities are generally classified on a statement of financial position as
a)
a. small liabilities and large liabilities.
b)
b. present liabilities and future liabilities.
c)
c. tangible liabilities and intangible liabilities.
d)
d. current liabilities and non-current liabilities.
33.
Complete the quote by Jose Rizal: “Ang hindi magmahal sa sariling (a) ay higit sa (b) at malansang (c) ; kaya ating pagyamaning kusa, gaya ng inang sa atin ay nagpala.”
Choose from the below words
wika
hayop
isda
kahoy
kapwa
magulang
bansa
masama
basura
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