51 100 pts Which one of the fixed asset accounts listed below will not have a related contra asset account? Land Building O Office Equipment O Delivery Equipment D Question 52 Prepaid insurance is reported on the balance sheet as a current liability long-term liability fixed asset current asset 100 pts Question 53 100 pts The income statement is prepared from the O either the adjusted trial balance or the income statement columns of the work sheet adjusted trial balance Oboth the adjusted trial balance and the income statement columns of the work sheet O income statement columns of the work sheet. D Question 54 Round-tripping is when a selling company lends money to a customer company to increase assets. O a selling company sells to a customer company with huge discounts. O a selling company pretends to sell to a fictitious company with the intend of inflating revenues 100 pts O a selling company lends money to a customer company to be used to purchase goods from the selling company. Question 55 The Statement of Owner's Equity should be prepared O before the income statement and balance sheet O after the income statement and balance sheet before the income statement and after the balance sheet O after the income statement and before the balance sheet D Question 56 The income statement should be prepared before the statement of owner's equity and balance sheet after the statement of owner's equity and balance sheet after the balance sheet and before the statement of owner's equity O after the statement of owner's equity and before the balance sheet 100 pts 100 pts Question 57 100 pts When preparing the Statement of Owner's Equity the beginning balance should be followed by to arrive and the ending balance of owner's equity. O investments plus net income (loss) O investments plus net income (loss) less withdrawals O net income (loss) less withdrawals O investments less withdrawals Steely Company Adjusted Trial Balance For the Year ended December 31, 2008 Cash 6,130 Accounts Receivable Prepaid Expenses Equipment 2,300 750 13,400 Accumulated Depreciation 1,200 Accounts Payable 1,700 Notes Payable 5,000 Bob Steely, Capital 12,000 Bob Steely, Withdrawals 870 Fees Earned 6,600 Wages Expense 1,450 Rent Expense 900 Utilities Expense 475 Depreciation Expense 150 Miscellaneous Expense 75 Totals 26,500 26,500 Determine the net income (loss) for the period. ONet Loss 3,550 ONet Income 26,500 Net Loss 870 ONet Income 3.550 Steely Company Adjusted Trial Balance For the Year ended December 31, 2008 6,130 Cash Accounts Receivable 2,300 Prepaid Expenses Equipment Accumulated Depreciation 750 13,400 1,200 Accounts Payable 1,700 Notes Payable 5,000 Bob Steely, Capital 12,000 Bob Steely, Withdrawals 870 Fees Earned 6,600 Wages Expense 1,450 Rent Expense 900 Utilities Expense 475 Depreciation Expense 150 Miscellaneous Expense 75 Totals 26,500 26,500 Determine the owner's equity ending balance for the period. P15,550 P14,680 P2,680 OPIL 130 Sicely Company Adjusted Trial Balance For the Year ended December 31, 2008 Cash 6,130 Accounts Receivable 2,300 Prepaid Expenses Equipment Accumulated Depreciation 750 13,400 1,200 Accounts Payable 1,700 Notes Payable 5,000 Bob Steely, Capital 12,000 Bob Steely, Withdrawals 870 Fees Earned 6,600 Wages Expense 1,450 Rent Expense 900 Utilities Expense 475 Depreciation Expense 150 Miscellaneous Expense 75 Totals 26,500 26,500 Determine total assets. P21,380 P15,380 P22,580 P26,500 Adjusted Trial Balance For the Year ended December 31, 2008 Cash 6,130 Accounts Receivable Prepaid Expenses Equipment 2,300 750 13,400 Accumulated Depreciation 1,200 Accounts Payable 1,700 Notes Payable 5,000 Bob Steely, Capital 12,000 Bob Steely, Withdrawals 870 Fees Earned 6,600 Wages Expense 1,450 Rent Expense 900 Utilities Expense 475 Depreciation Expense 150 Miscellaneous Expense 75 Totals 26,500 26,500 Determine the total liabilities for the period. P6,700 P5,000 O P1,700 P18.700 Question 62 The Balance Sheet should be prepared after the income statement and the statement of owner's equity before the income statement and the statement of owner's equity O after the income statement and before the statement of owner's equity O before the income statement and after the statement of owner's equity Question 63 100 pts 100 pts The Statement of Owner's Equity begins with the beginning balance followed by O plus investments plus Net Income (loss) less withdrawals O plus Net Income (loss) plus investments O plus Net Income (loss) less withdrawals plus investments less withdrawals Question 64 100 pts The Income Statement will include the following accounts O Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed last Revenues less Expenses (order is not important) O Revenues less Expenses (ordered in alphabetical order) O Revenues less Expenses (ordered smallest to largest amounts) with Miscellaneous Expense listed last D Question 65 The classified Balance Sheet will subsection the assets section as follows O Current Assets and Long-Term Assets Current Assets and Other Assets Other Assets and Property, Plant and Equipment Current Assets and Property, Plant, and Equipment 100 pts Question 66 The classified Balance Sheet will divide its Liabilities Section as the following subsections O Current Liabilities and Other Liabilities Other Liabilities and Long-Term Liabilities O Current Liabilities and Long-Term Liabilities O Present Liabilities and Tomorrow's Liabilities D Question 67 The owner's equity is subtract from liabilities and the net amount is equal to assets O added to liabilities and the two are equal to assets added to assets and the two are equal to liabilities subtract from owner's equity and the net amount is equal to net income 100 pts 100 pts > Question 68 Balance sheet accounts O have zero balances after the closing entries have been posted are equal to assets and liabilities represent amounts accumulated during a specific period of time O are called real accounts D Question 69 On which financial statement will Income Summary be shown? No financial statement O Income Statement Balance Sheet Statement of Owner's Equity 100 pts 100 pts Question 70 100 pts Which is the following that is not true about closing entries? By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly. All real accounts are closed at the end of the period. O There are four closing entries that update the owner's equity account. O After the second closing entry, the income summary account is equal to the net income or (loss) for the period. D Question 71 The income summary account is also called the nominal account the clearing account the closing account the temporary account 100 pts Question 72 100 pts After posting the second closing entry to the income summary account, the balance will be equal to O revenues for the period the net income or (loss) for the period. O owner's equity. zero. Question 73 Which of the following account groups are all considered nominal accounts? Drawing Account, Fees Earned, Rent Expense O Prepaid Expenses, Unearned Revenues, Fees Earned Cash, Fees Earned, Unearned Revenues O Capital Account, Drawing Account, Income Summary 100 pts D Question 74 100 pts There are four closing entries. The first one is to close the second one is to close the third one is to close , and the last one is to close O Capital account, drawing account, income summary, assets Drawing account, income summary, expenses, revenues O Expenses, assets, income summary, capital account Revenues, expenses, income summary, drawing account Question 75 All of the closing entries will adjust to update that account. the drawing account O the cash account the capital account the income summary account 100 pts Question 76 100 pts Closing entries are dated in the journal as of O the last day of the accounting period, although they are actually journalized after the end of the accounting period the first day of the subsequent accounting period the date they are actually journalized, although they are generally prepared after the end of the accounting period Othe first day of the accounting period, although they are actually journalized after the end of the accounting period Question 77 100 pts Which of the accounts below would be closed by posting a debit to the account? O Jeff Ritter, Drawing Rent Expense Fees Earned Unearned Revenue Question 78 100 pts Which of the following accounts should be closed to Income Summary at the end of the fiscal year? O Prepaid Insurance O Supplies Expense Accumulated Depreciation Unearned Rent Question 79 100 pts Which of the following accounts will be closed to the Capital account at the end of the fiscal year? Depreciation Expense O Income Summary Fees Earned O Rent Expense Question 80 100 pts Which of the following accounts ordinarily appears in the post-closing trial balance? Unearned Rent O Fees Earned Bill Smith, Drawing O Supplies Expense D Question 81 The post-closing trial balance differs from the adjusted trial balance in that it does not include balance sheet accounts does not take into account closing entries does not include income statement accounts does not take into account adjusting entries 100 pts Question 82 100 pts The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation Fees Earned Depreciation Expense Insurance Expense Prepaid Insurance Supplies Supplies Expenses Net income for the period is O P10,000 O P4,300 O P2,300 O P5,000 P 2,000 15,000 1,000 500 4,500 1,200 3,500 Question 83 100 pts Red Rock Stone purchased a one-year liability insurance policy on January 1st of this year for P3,600 and recorded it as a prepaid expense. From the selections of a. through d., select the value that would be utilized in the closing entry for insurance expense and prepaid insurance during the closing process at the end of the first fiscal period on January 31st. P360. P360. OP300. O P3,600. Question 84 The imported question text for this question was too long. credit Fees Earned P47,000; credit L. Mantle, Capital P47,000 O debit Fees Earned P47,000; credit Income Summary P47,000 debit L. Mantle, Capital P47,000, credit Fees Earned P47,000 debit Income Summary P47,000, credit Fees Earned P47,000 100 pts Question 85 The imported question text for this question was too long. debit Owner's Equity P4,000; credit Income Summary P4,000 Odebit Income Summary P47,000; credit Owner's Equity P47,000 debit Income Summary P15,000; credit Owner's Equity P4,000 debit Income Summary P15,000, credit Owner's Equity P15,000 D Question 86 The imported question text for this question was too long. debit L. Mantle, Capital P4,000, credit L. Mantle, Drawing P4,000 debit L. Mantle, Drawing P1,000; credit L. Mantle, Capital P1,000 debit L. Mantle, Drawing P4,000; credit L. Mantle, Capital P4,000 debit L. Mantle, Capital P1,000, credit L. Mantle, Drawing P1,000 100 pts 100 pts The proper sequence for the steps in the accounting cycle is a follows analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger O analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries O prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, Oprepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, 0. Question 88 100 pts The following are steps in the accounting cycle. Of the following, which would be prepared last? O An adjusted trial balance is prepared. O Transactions are posted to the ledger. An unadjusted trial balance is prepared. O Adjusting entries are journalized and posted to the ledger. D Question 89 A fiscal year for a business is determined by the federal government should end at the height of the business's annual operating cycle O always begins on January 1 and ends on December 31 of the same year Oordinarily begins on the first day of a month and ends on the last day of the following twelfth month Question 90 The worksheet 100 pts 100 pts 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 D Question 91 When a work sheet is complete, the adjustment columns should have total debits greater than total credits if a net income was earned total debits equal total credits Ototal debits grater than total credits if a net loss was incurred O total credits greater than total debits if a net income was earned 100 pts Question 92 100 pts The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet is not unusual when preparing the work sheet is the amount of net income or loss indicates there is an error on the work sheet O is the net difference between revenue, expenses, and drawing Question 93 Net income appears on the work sheet in the debit column of the Income Statement columns credit column of the Income Statement columns O debit column of the Adjustments columns O debit column of the Balance Sheet columns D Question 94 A net loss appears on the work sheet in the credit column of the Balance Sheet columns O debit column of the Balance Sheet columns debit column of the Income Statement columns credit column of the Adjustments columns 100 pts 100 pts Question 95 100 pts Which of the statements below indicates that a company earned a net income for the period? The sum of the debits exceeds the sum of the credits in the Balance Sheet columns on the work sheet. Cash inflows exceeded cash outflows. The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet. The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet. Question 96 Which of the accounts below would appear in the balance sheet columns of the worksheet? Rent Earned Bill Jones, Drawing and Unearned Revenue Unearned Revenue Bill Jones, Drawing 100 pts D Question 97 100 pts Which of the accounts below would appear in the Balance Sheet columns of the work sheet? O Supplies Expense O Prepaid Rent None are correct Service Revenue D Question 98 100 pts The work sheet at the end of September has P4,000 in the Balance Sheet credit column for Accumulated Depreciation. The work sheet at the end of October has P4,750 in the Balance Sheet credit column for Accumulated Depreciation. What was the amount of the depreciation expense adjustment for the month of October? amount can not be determined P4,750 P4,000 P750 Question 99 100 pts After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are P25,250 and P21,825, respectively. What is the amount of net income or net loss for the period? O P25,250 net loss P3,425 net loss O P3,425 net income O P21,825 net income D Question 100 100 pts After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are P87,500 and P98,300, respectively. What is the amount of the net income or net loss for the period? O P87,500 net loss P10,800 net loss OP98,300 net income P10,800 net income