Question 1

Match each definition with the correct term below.
-Temporary accounts

Accepted Answer

Temporary accounts are accounts that begin each accounting period with a zero balance, as they are used to track financial activity for a specific period and are closed at the end of that period.

Question 2

Match each definition with the correct term below.
-Post-closing trial balance

Accepted Answer

A post-closing trial balance is used to ensure that all temporary accounts have zero balances after closing entries are made.

Question 3

What broad purposes are accomplished by closing entries?

Accepted Answer

The answer of What broad purposes are accomplished by closing...

Question 4

During the performance of the steps in the accounting cycle,trial balances are prepared at three key points.Using specific names where applicable,discuss the time of preparation and the purpose served by each of these trial balances.

Accepted Answer

The answer of During the performance of the steps in...

Question 5

Why will the Income Summary account never appear on any financial statement?

Accepted Answer

The answer of Why will the Income Summary account never...

Question 6

Match each definition with the correct term below.
-Permanent accounts

Accepted Answer

Permanent accounts are those that carry their end-of-period balances into the next accounting period.

Question 7

Match each definition with the correct term below.
-Deferred expense

Accepted Answer

Deferred expense refers to the postponement of the recognition of an expense that has already been paid.

Question 8

On December 12,Roger Kent,a painter,received $1,800 in advance for performing a service that would extend into the following calendar year.By December 31,he still had three-fourths of the service remaining to perform.In the journal provided,prepare the December 12 entry,the December 31 end-of-period adjustment,as well as the entry on January 29 when the job was completed.Omit explanations.

Accepted Answer

The answer of On December 12,Roger Kent,a painter,received $1,800 in...

Question 9

Distinguish between adjusting and closing entries.

Accepted Answer

The answer of Distinguish between adjusting and closing entries....

Question 10

The end of year income statement for Plymouth Company showed rent expense of $21,600 and salaries expense of $14,400.The related balance sheet account balances at year end for last year and this year were as follows:
 $\begin{array}{|l|r|r|}
\hline & \text { This Year } &{\text { Last Year }} \
\hline & &  \
\text { Prepaid rent } & \$ 2,400 & \$  0 \
\text { Salaries payable } & 800 &  1,600 \
\hline
\end{array}$ 
a.Compute cash paid for rent during the year.
b.Compute cash paid for salaries during the year.

Accepted Answer

The answer of The end of year income statement for...

Question 11

The following amounts are taken from the balance sheets of Baltic Corporation:
 $\begin{array}{|l|r|r|}
\hline & \text { December 31, 2013 } & \text { December 31, 2012 } \
\hline & & \
\text { Accrued liabilities } & \$ 44,000 & \$ 37,500 \
\text { Prepaid expenses } & 14,000 & 18,500 \
\hline
\end{array}$ During 2013,expenses related to accrued liabilities were $30,500,and expenses related to prepaid expenses were $21,000. 
a.Compute cash payments related to accrued liabilities.
b.Compute cash payments related to prepaid expenses.

Accepted Answer

The answer of The following amounts are taken from the...

Question 12

Dowling Company had supplies on hand costing $1,000 at the beginning of the year and $2,400 at the end of the year.During the year,supplies totaling $3,800 were consumed.How much was the total cost of supplies purchased during the year?

Accepted Answer

The answer of Dowling Company had supplies on hand costing...

Question 13

Match each definition with the correct term below.
-Accrual

Accepted Answer

Accrual refers to the recognition of a revenue or an expense that has arisen but not been recorded during the accounting period.

Question 14

Bristol Enterprises had supplies on hand costing $480 on December 31.During the same year,supplies costing $1,000 were purchased,and $640 in supplies were consumed during the year.What was the cost of supplies on hand on January 1 of that year?

Accepted Answer

The answer of Bristol Enterprises had supplies on hand costing...

Question 15

Match each definition with the correct term below.
-Adjusted trial balance

Accepted Answer

An adjusted trial balance is used after making adjusting journal entries to ensure that debits equal credits.

Question 16

Match each definition with the correct term below.
-Unearned revenues

Accepted Answer

Unearned revenues refer to payments received by a company for goods or services that have not yet been delivered or performed.

Question 17

The following steps in the accounting cycle are presented out of order below.Arrange the steps in the proper order by placing a number from 1 through 5 in the blanks provided.Also identify each step as either a recurring activity (RA)-one that would be repeated during the fiscal period-or an end-of-period activity (EOP)-one performed at the end of the accounting period.
______a.Record entries in a journal.
______b.Adjust the accounts and prepare an adjusted trial balance.
______c.Close the accounts and prepare a post-closing trial balance.
______d.Analyze business transactions from source documents.
______e.Post entries to the ledger and prepare a trial balance.

Accepted Answer

The answer of The following steps in the accounting cycle...

Question 18

Match each definition with the correct term below.
-Accrued revenues

Accepted Answer

Accrued revenues are revenues that a company has earned by performing a service or delivering goods but for which no entry has been made yet.

Question 19

Match each definition with the correct term below.
-Revenues

Accepted Answer

Revenues are increases in stockholders' equity resulting from selling goods or services.

Question 20

Match each definition with the correct term below.
-Expenses

Accepted Answer

Expenses are decreases in stockholders' equity resulting from the cost of selling goods.

Quiz 3: Measuring Business Income

Match each definition with the correct term below. -Temporary accounts

Match each definition with the correct term below. -Post-closing trial balance

What broad purposes are accomplished by closing entries?

During the performance of the steps in the accounting cycle,trial balances are prepared at three key points.Using specific names where applicable,discuss the time of preparation and the purpose served by each of these trial balances.

Why will the Income Summary account never appear on any financial statement?

Match each definition with the correct term below. -Permanent accounts

Match each definition with the correct term below. -Deferred expense

Distinguish between adjusting and closing entries.

Dowling Company had supplies on hand costing $1,000 at the beginning of the year and $2,400 at the end of the year.During the year,supplies totaling $3,800 were consumed.How much was the total cost of supplies purchased during the year?

Match each definition with the correct term below. -Accrual

Bristol Enterprises had supplies on hand costing $480 on December 31.During the same year,supplies costing $1,000 were purchased,and $640 in supplies were consumed during the year.What was the cost of supplies on hand on January 1 of that year?

Match each definition with the correct term below. -Adjusted trial balance

Match each definition with the correct term below. -Unearned revenues

Match each definition with the correct term below. -Accrued revenues

Match each definition with the correct term below. -Revenues

Match each definition with the correct term below. -Expenses