Question 1

A end-of-period spreadsheet heading is dated for a period of time.

Accepted Answer

End-of-period spreadsheets are commonly used to summarize financial transactions and account balances over a specific period of time, such as a month, quarter, or year. Therefore, the heading of the spreadsheet typically includes the dates for the relevant period.

Question 2

Since the adjustments are entered on the end-of-period spreadsheet,it is not necessary to record them in the journal or post them to the ledger.

Accepted Answer

Although the adjustments are entered on the end-of-period spreadsheet, they still need to be recorded in the journal and posted to the ledger to ensure the accuracy of the financial statements.

Question 3

​The income statement is prepared from
A) ​the adjusted trial balance
B) ​the Income Statement columns of the end-of-period spreadsheet
C) ​either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet
D) ​both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheet

Accepted Answer

The income statement can be prepared from either the adjusted trial balance or the income statement columns of the end-of-period spreadsheet. Both sources provide the necessary information to calculate revenues, expenses, gains, and losses for the period. The choice between the two sources will depend on the preferences and procedures of the company or accountant.

Question 4

Notes receivable due in 390 days appear on the
A) balance sheet in the current assets section
B) balance sheet in the noncurrent assets section
C) balance sheet in the current liabilities section
D) income statement as an expense

Accepted Answer

Notes receivable due in 390 days are considered as noncurrent assets because they will not be converted into cash within one year.

Question 5

After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet,the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

Accepted Answer

The difference between the initial totals of the Balance Sheet debit and credit columns reflects the company's Net Income or Net Loss for the period, as it represents the result of the company's operations after all adjustments have been made.

Question 6

The chart of accounts,the journal,and the ledger are essential parts of the accounting system.

Accepted Answer

The chart of accounts, journal, and ledger are fundamental components of an accounting system. The chart of accounts is a list of all the accounts used by a business, the journal is used to record financial transactions in chronological order, and the ledger contains all the individual account balances.

Question 7

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000,respectively,after all account balances have been extended,the amount of the net loss is $2,000.

Accepted Answer

Net income (excess of revenues over expenses) = Total of Income Statement Credit column (revenues) - Total of Income Statement Debit column (expenses) = $29,000 - $27,000 = $2,000

Question 8

A net loss is shown on the end-of-period spreadsheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Accepted Answer

A net loss is shown in the debit column of the Income Statement section and in the credit column of the Balance Sheet section on the end-of-period spreadsheet.

Question 9

Which one of the fixed asset accounts listed below will not have a related contra asset account?
A) Office Equipment
B) Land
C) Delivery Equipment
D) Building

Accepted Answer

Land is a fixed asset that does not depreciate and therefore does not have a contra asset account. The other options (Office Equipment, Delivery Equipment, and Building) will have related contra asset accounts because they are subject to depreciation.

Question 10

What is the major difference between the unadjusted trial balance and the adjusted trial balance?
A) The adjusted trial balance will show the net income (loss)as an additional account.
B) Unlike the adjusted trial balance,the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance.
C) The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
D) The adjusted trial balance will be used to record the adjustments for the period.

Accepted Answer

The major difference between the unadjusted trial balance and the adjusted trial balance is that the adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts. This means that the adjusted trial balance reflects the true balance of accounts after adjustments have been made, whereas the unadjusted trial balance only reflects the balances before any adjustments have been made. The adjusted trial balance is used to prepare financial statements, whereas the unadjusted trial balance is simply a list of accounts and their balances.

Question 11

Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet credit column.

Accepted Answer

The answer of Net income is shown on the end-of-period...

Question 12

Prepaid insurance is reported on the balance sheet as a
A) current asset
B) fixed asset
C) current liability
D) long-term liability

Accepted Answer

Prepaid insurance is an asset because it represents an advance payment for an expense that has not yet been incurred. As it will be used up within the next accounting period, it is classified as a current asset.

Question 13

After Net Income or Loss is entered on the end-of-period spreadsheet,the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Accepted Answer

This is because the Balance Sheet follows the accounting equation which states that assets must always equal liabilities plus equity. Therefore, the debit and credit columns must always balance.

Question 14

Once the adjusting entries are posted,the adjusted trial balance is prepared to
A) verify that the debits and credits are in balance
B) verify that the net income correctly flows into the statement of stockholders' equity from the income statement
C) verify that the net income (loss)is correct for the period
D) verify the correct flow of accounts into the financial statements

Accepted Answer

The answer of Once the adjusting entries are posted,the adjusted...

Question 15

Unearned Fees appear on the
A) balance sheet in the current assets section
B) balance sheet as a current liability
C) balance sheet in the stockholders' equity section
D) income statement as revenue

Accepted Answer

Unearned fees represent income that has been received in advance but has not yet been earned. Therefore, it appears on the balance sheet as a current liability. It will only appear as revenue on the income statement when it has been earned.

Question 16

On the end-of-period spreadsheet,the common stock and dividends account balances are extended to the Balance Sheet columns.

Accepted Answer

This is true, as the common stock and dividends accounts are important components of the balance sheet and their balances need to be carried over to that section of the spreadsheet.

Question 17

The income statement should be prepared
A) before the retained earnings statement and balance sheet
B) after the retained earnings statement and before the balance sheet
C) after the retained earnings statement and balance sheet
D) after the balance sheet and before the retained earnings statement

Accepted Answer

The income statement is prepared first because it provides the net income or net loss figure that is needed for the retained earnings statement, which in turn is needed for the balance sheet.

Question 18

The first item appearing on the statement of retained earnings is
A) net income
B) the ending balance of retained earnings
C) dividends
D) the beginning balance of retained earnings

Accepted Answer

The first item appearing on the statement of retained earnings is the beginning balance of retained earnings, which is carried over from the previous period.

Question 19

The statement of retained earnings should be prepared
A) before the income statement and after the balance sheet
B) before the income statement and balance sheet
C) after the income statement and balance sheet
D) after the income statement and before the balance sheet

Accepted Answer

The statement of retained earnings follows the income statement, as it reconciles the net income from the income statement with the changes in retained earnings. It is then followed by the balance sheet, which includes the ending retained earnings balance reported on the statement of retained earnings. Therefore, the correct order is income statement > statement of retained earnings > balance sheet.

Question 20

Accumulated Depreciation appears on the
A) balance sheet in the current assets section
B) balance sheet in the property,plant,and equipment section
C) balance sheet in the long-term liabilities section
D) income statement as an operating expense

Accepted Answer

Accumulated Depreciation is a contra-asset account that reduces the value of Property, Plant, and Equipment (PP&E) assets. Hence, it appears in the PP&E section of the balance sheet.

Quiz 4: Completing the Accounting Cycle

A end-of-period spreadsheet heading is dated for a period of time.

Since the adjustments are entered on the end-of-period spreadsheet,it is not necessary to record them in the journal or post them to the ledger.

​The income statement is prepared from

Notes receivable due in 390 days appear on the

After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet,the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.

The chart of accounts,the journal,and the ledger are essential parts of the accounting system.

If the totals of the Income Statement Debit and Credit columns of an end-of-period spreadsheet are $27,000 and $29,000,respectively,after all account balances have been extended,the amount of the net loss is $2,000.

A net loss is shown on the end-of-period spreadsheet in the credit columns of both the Income Statement columns and the Balance Sheet columns.

Which one of the fixed asset accounts listed below will not have a related contra asset account?

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet credit column.

Prepaid insurance is reported on the balance sheet as a

After Net Income or Loss is entered on the end-of-period spreadsheet,the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Once the adjusting entries are posted,the adjusted trial balance is prepared to

Unearned Fees appear on the

On the end-of-period spreadsheet,the common stock and dividends account balances are extended to the Balance Sheet columns.

The income statement should be prepared

The first item appearing on the statement of retained earnings is

The statement of retained earnings should be prepared

Accumulated Depreciation appears on the

The income statement is prepared from