Question 1

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600.
​
What is Alpha Company's current ratio?

Accepted Answer

The answer of Alpha Company has current assets of $74,524,...

Question 2

Match each journal entry that follows as one of the types of journal entries (a-c) below.
-​Unearned Revenue 985
Fees Earned 985

Accepted Answer

This is an example of an adjusting journal entry, where the unearned revenue account is being reduced and fees earned account is being increased at the end of an accounting period to reflect the revenue earned during that period.

Question 3

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600.
​
What is Alpha Company's working capital?

Accepted Answer

The answer of Alpha Company has current assets of $74,524,...

Question 4

Match each journal entry that follows as one of the types of journal entries (a-c) below.
-​Wages Expense 870
Wages Payable 870

Accepted Answer

This is an adjusting journal entry, typically made at the end of an accounting period to allocate expenses that have been incurred but not yet paid (accrued expenses).

Question 5

Match each journal entry that follows as one of the types of journal entries (a-c) below.
-​Income Summary 650
Retained Earnings 650

Accepted Answer

This is a closing journal entry because it transfers the balance of the Income Summary account to the Retained Earnings account at the end of the accounting period.

Question 6

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

Accepted Answer

A reversing entry is made to cancel out the adjusting entry from the previous period. Since the adjusting entry debited Wages Expense and credited Wages Payable, the reversing entry does the opposite: it debits Wages Payable and credits Wages Expense. This prepares the accounts for the actual payment of wages.

Question 7

The use of reversing entries is

Accepted Answer

Reversing entries are optional and are typically only used in certain situations, such as when prepayments or accruals are made at the end of an accounting period. They are not required and are not necessary for all adjusting entries. The use of reversing entries may depend on the company's accounting system and processes.

Question 8

Which of the following is not an essential part of the accounting records?

Accepted Answer

While an end-of-period spreadsheet may be useful, it is not considered an essential part of the accounting records. The journal, ledger, and chart of accounts are all crucial components of an organization's accounting system.

Question 9

Match each journal entry that follows as one of the types of journal entries (a-c) below.
-​Utilities Expense 430
Cash 430

Accepted Answer

This is a regular journal entry as it involves the recording of an expense and the corresponding cash payment.

Question 10

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

Accepted Answer

Net income (excess of revenues over expenses) = Total of Balance Sheet Debit column - Total of Balance Sheet Credit column = $37,686 - $41,101 = ($3,415)
Net loss = $3,415

Question 11

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Accepted Answer

The double rule under each pair of columns indicates that they are in balance and the spreadsheet is complete. The other options may be helpful but are not definitive indicators of balance and completeness.

Question 12

Which of the items below does not appear on the end-of-period spreadsheet?

Accepted Answer

Closing entries are not included on the end-of-period spreadsheet. The spreadsheet typically includes the unadjusted trial balance, adjusting entries, and the adjusted trial balance, but closing entries are part of the process to prepare the accounts for the next period and are not included on the spreadsheet.

Question 13

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Accepted Answer

Net income (excess of revenues over expenses) = Total of Balance Sheet
Debit column - Total of Balance Sheet Credit column = $36,755 - $32,735 = $4,020

Question 14

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

Accepted Answer

Net income (excess of revenues over expenses) = Total of Income Statement Credit column (revenues) - Total of Income Statement Debit column (expenses) = $77,520 - $55,800 =  $21,720

Question 15

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the end-of-period spreadsheet would

Accepted Answer

When rent is paid in advance, it is initially recorded as a debit to the pre-paid rent asset account. However, at the end of the period, an adjusting entry is required to recognize the rent expense for the period that has been used up. This adjusting entry will increase the rent expense account and decrease the pre-paid rent asset account. Therefore, the answer is A) increase an expense account.

Question 16

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

Accepted Answer

Net income (excess of revenues over expenses) = Total of Income Statement Credit column (revenues) - Total of Income Statement Debit column (expenses) = $83,900 - $77,500 = $6,400

Question 17

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the end-of-period spreadsheet would

Accepted Answer

The adjusting entry at year-end would decrease the liability account that was initially credited when the revenue was collected in advance. This is because as time passes, the company has fulfilled its obligation to provide goods or services to the customers who pre-paid, and therefore the liability decreases. None of the other choices are correct, as there is no asset account being decreased or revenue account being affected by the adjusting entry.

Question 18

Match each journal entry that follows as one of the types of journal entries (a-c) below.
-​Cash 450
Fees Earned 450

Accepted Answer

This is a regular journal entry that records the receipt of cash for fees earned.

Question 19

Daniel Corporation's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation. The end-of-period spreadsheet at the end of August has $7,600 in the Balance Sheet Credit column for Accumulated Depreciation. What is the amount of the depreciation expense adjustment for the month of August?

Accepted Answer

Amount of the depreciation expense adjustment for the month of August = Accumulated Depreciation at the end of August - Accumulated Depreciation at the end of July = $7,600 - $4,950 = $2,650

Question 20

A business's current assets divided by its current liabilities is equal to its

Accepted Answer

The ratio of current assets to current liabilities is known as the current ratio. It measures a company's liquidity and ability to pay off its short-term debts with its current assets. A higher current ratio is generally considered better as it indicates that the company has more assets available to cover its liabilities. Working capital is the difference between current assets and current liabilities, while current net income and current equity are not directly related to the current ratio.

Quiz 4: The Accounting Cycle

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. What is Alpha Company's current ratio?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Unearned Revenue 985 Fees Earned 985

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. What is Alpha Company's working capital?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Wages Expense 870 Wages Payable 870

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Income Summary 650 Retained Earnings 650

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

The use of reversing entries is

Which of the following is not an essential part of the accounting records?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Utilities Expense 430 Cash 430

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Which of the items below does not appear on the end-of-period spreadsheet?

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the end-of-period spreadsheet would

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the end-of-period spreadsheet would

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Cash 450 Fees Earned 450

A business's current assets divided by its current liabilities is equal to its

Quiz 4: The Accounting Cycle

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. ​ What is Alpha Company's current ratio?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Unearned Revenue 985 Fees Earned 985

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. ​ What is Alpha Company's working capital?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Wages Expense 870 Wages Payable 870

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Income Summary 650 Retained Earnings 650

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

The use of reversing entries is

Which of the following is not an essential part of the accounting records?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Utilities Expense 430 Cash 430

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

An indication that the end-of-period spreadsheet columns are in balance and the spreadsheet is complete is

Which of the items below does not appear on the end-of-period spreadsheet?

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the end-of-period spreadsheet would

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the end-of-period spreadsheet would

Match each journal entry that follows as one of the types of journal entries (a-c) below. -​Cash 450 Fees Earned 450

A business's current assets divided by its current liabilities is equal to its

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. What is Alpha Company's current ratio?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Unearned Revenue 985 Fees Earned 985

Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600. What is Alpha Company's working capital?

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Wages Expense 870 Wages Payable 870

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Income Summary 650 Retained Earnings 650

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Utilities Expense 430 Cash 430

Match each journal entry that follows as one of the types of journal entries (a-c) below. -Cash 450 Fees Earned 450