Question 1

Which of the following statements regarding reporting under GAAP and IFRS is not true:

Accepted Answer

A)  Both GAAP and IFRS define the initial asset value as historical cost for nearly all assets.
B)  The definition of an asset under GAAP and IFRS involves three basic criteria.
C)  Both GAAP and IFRS define the initial asset value as replacement value.
D)  The definition of a liability under GAAP and IFRS involves three basic criteria.
E)  After acquisition,one of two asset measurement systems is applied.F) B) and D)
G) None of the above

Question 2

For the year ended December 31,a company has revenues of $317,000 and expenses of $196,000.The owner withdrew $50,000 during the year.The balance in the owner's capital account before closing is $81,000.Which of the following entries would be used to close the withdrawal account?

Accepted Answer

A)  Debit Income Summary $50,000;credit Owner's,Capital $50,000.
B)  Debit Owner's Capital $50,000;credit Owner Withdrawals $50,000.
C)  Debit Owner's Capital $81,000;credit Income Summary $81,000.
D)  Debit Income Summary $81,000,credit Owner's Withdrawals $81,000.
E)  Debit Owner's Withdrawals $50,000;credit Owner's Capital $50,000.F) None of the above
G) B) and E)

Question 3

The unadjusted trial balance of R.Tryon,Consultant is entered on the partial work sheet below.Complete the work sheet using the following information:
(a)Salaries earned by employees that are unpaid and unrecorded,$500.
(b)An inventory of supplies showed $800 of unused supplies still on hand.
(c)Depreciation on equipment,$1,300.

Accepted Answer

The answer of The unadjusted trial balance of R.Tryon,Consultant is...

Question 4

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Accepted Answer

A)  Office Equipment.
B)  Accumulated Depreciation-Office Equipment.
C)  Depreciation Expense-Office Equipment.
D)  N.Young,Capital.
E)  Salaries Payable.F) A) and E)
G) A) and C)

Question 5

The current ratio:

Accepted Answer

A)  Is used to measure a company's profitability.
B)  Is used to measure the relation between assets and long-term debt.
C)  Measures the effect of operating income on profit.
D)  Is used to help assess a company's ability to pay its debts in the near future.
E)  Is calculated by dividing current assets by equity.F) B) and E)
G) D) and E)

Question 6

The trial balance prepared after all closing entries have been journalized and posted is called the:

Accepted Answer

A)  Unadjusted trial balance.
B)  Post-closing trial balance.
C)  General ledger.
D)  Adjusted trial balance.
E)  Work sheet.F) A) and E)
G) A) and B)

Exam 4: Completing the Accounting Cycle

Which of the following statements regarding reporting under GAAP and IFRS is not true:

Correct Answer
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The current ratio:

Correct Answer
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For the year ended December 31,a company has revenues of $317,000 and expenses of $196,000.The owner withdrew $50,000 during the year.The balance in the owner's capital account before closing is $81,000.Which of the following entries would be used to close the withdrawal account?

Correct Answer
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Correct Answer
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Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Correct Answer
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The trial balance prepared after all closing entries have been journalized and posted is called the:

Correct Answer
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Exam 4: Completing the Accounting Cycle

Which of the following statements regarding reporting under GAAP and IFRS is not true:

Correct AnswerverifiedShow Answer

The current ratio:

Correct AnswerverifiedShow Answer

For the year ended December 31,a company has revenues of $317,000 and expenses of $196,000.The owner withdrew $50,000 during the year.The balance in the owner's capital account before closing is $81,000.Which of the following entries would be used to close the withdrawal account?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following accounts showing a balance on the post-closing trial balance indicate an error?

Correct AnswerverifiedShow Answer

The trial balance prepared after all closing entries have been journalized and posted is called the:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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