Question 1

To see the appropriate report balances, type the date range.

Accepted Answer

Typing the date range allows you to specify the period for which you want to view report balances, ensuring the data displayed is relevant to the timeframe you're interested in.

Question 2

In Chapter 7, adjusting entries are dated December 31.

Accepted Answer

Adjusting entries are typically dated the last day of the accounting period to update the accounts to their correct balances before financial statements are prepared, and for many businesses, this date is December 31, the end of the fiscal year.

Question 3

To close the books, change the trial balance date to December 31 of the current year.

Accepted Answer

Closing the books involves recording adjusting entries, closing temporary accounts to permanent accounts (like equity), and preparing financial statements, not just changing the trial balance date.

Question 4

On the Balance Sheet, the previous year's Net Income amount is also the company's profit.

Accepted Answer

The previous year's Net Income on the Balance Sheet is the profit earned by the company during that year, which is then added to the Retained Earnings in the equity section.

Question 5

When the Balance Sheet's date is changed to January 1 of the next year, the Retained Earnings account will show the previous year's Net Income;and the Profit and Loss accounts will have zero balances.

Accepted Answer

On January 1, the Retained Earnings account is updated to include the previous year's Net Income as part of the closing process, and the Profit and Loss accounts are zeroed out to start the new fiscal year.

Question 6

A software design that emphasizes separating the functions of a program into independent, interchangeable components is called:

Accepted Answer

Modular design in software engineering is a design approach that emphasizes splitting the functionality of a program into independent, interchangeable modules, where each contains everything necessary to execute only one aspect of the desired functionality.

Question 7

Accounts that are closed as the end of the year are called:

Accepted Answer

Temporary accounts are closed at the end of the accounting year to prepare the accounts for the next period. This includes revenue, expense, and withdrawal accounts. Permanent accounts, such as assets, liabilities, and equity accounts, are not closed.

Question 8

A common characteristic of an adjusting entry is that it will include one Profit and Loss statement account and one Balance Sheet account.

Accepted Answer

Adjusting entries are made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred. They typically involve one income statement account (revenue or expense) and one balance sheet account (asset or liability) to adjust the accounts to their correct balances.

Question 9

Adjusting entries are recorded so that the financial statements reflect revenues that are earned and expenses incurred.

Accepted Answer

Adjusting entries are made in the accounting records to ensure that revenues are recognized in the period they are earned and expenses are recognized in the period they are incurred, aligning with the accrual basis of accounting. This ensures that financial statements accurately reflect the company's financial position and performance.

Question 10

Before completing work in Chapter 7, display the:

Accepted Answer

The task is to display the trial balance from October 1 through December 31, which aligns with the requirement to complete work in Chapter 7.

Question 11

Use the Settings menu to record journal entries.

Accepted Answer

The Settings menu in accounting software is typically used to configure preferences, manage accounts, and customize the software's functionality, not for recording journal entries. Journal entries are usually recorded through a dedicated Journal Entry or Transactions menu.

Question 12

A list report can be customized and exported using:

Accepted Answer

Excel is commonly used to customize and export list reports by allowing users to manipulate and format data as needed.

Question 13

A period that the company uses for accounting purposes and preparing financial statements.

Accepted Answer

A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting. It is used for accounting purposes and preparing financial statements, and it does not necessarily coincide with the calendar year.

Question 14

Adjusting entries are recorded on the Invoice page.

Accepted Answer

Adjusting entries are recorded in the general journal, not on the Invoice page, as they are made to allocate income and expenses to the correct accounting period.

Question 15

The purpose of an adjusting entry is a/an:

Accepted Answer

Adjusting entries are made in accounting to ensure that revenues and expenses are recorded in the period in which they occur, leading to an accurate Profit and Loss statement and Balance Sheet. Choices B, C, and D refer to actions in software or system settings, not accounting principles.

Question 16

The purpose of closing the books is to transfer:

Accepted Answer

The purpose of closing the books is to transfer net income (or loss) to retained earnings, which updates the equity section of the balance sheet to reflect the company's performance for the period.

Question 17

When does QBO_Student Name record adjusting entries?

Accepted Answer

The answer of When does QBO_Student Name record adjusting entries?
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Question 18

The accounts shown on the balance sheet are called:

Accepted Answer

Permanent accounts are the accounts that are reported on the balance sheet. They include asset, liability, and equity accounts and are not closed at the end of the accounting period.

Question 19

What checks are shown on Chapter 7's transaction register?

Accepted Answer

The answer of What checks are shown on Chapter 7's...

Question 20

When you close the books, income, cost of goods sold, and expense accounts are reset to zero amounts.

Accepted Answer

At the end of an accounting period, income, cost of goods sold, and expense accounts are closed out to a temporary account (usually Income Summary) to reset their balances to zero for the start of the new accounting period. This process is part of preparing the accounts for the next period's transactions.

Quiz 7: Analysis and Reportsend of Fourth Quarter and Year