MCQ Questions
Q.1.
The income summary account is also called
  • 0%
    the clearing account
  • 0%
    either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet
  • 0%
    before the retained earnings statement and balance sheet
  • 0%
    the closing enteries
Q.2.
Stockholders' equity is
  • 0%
    after the income statement and before the balance sheet
  • 0%
    added to liabilities and the two are equal to assets
  • 0%
    current liabilities and long-term liabilities
  • 0%
    after the income statement and the retained earnings statement
Q.3.
Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
  • 0%
    fees earned
  • 0%
    prepaid insurance
  • 0%
    service revenue
  • 0%
    income summary
Q.4.
Unearned Fees appear on the
  • 0%
    balance sheet as a current liability
  • 0%
    before the retained earnings statement and balance sheet
  • 0%
    balance sheet in the noncurrent assets section
  • 0%
    balance sheet in the property, plant, and equipment section
Q.5.
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
  • 0%
    the closing enteries
  • 0%
    un-adjusted, adjusted, postclosing
  • 0%
    an adjusted trial balance is prepared
  • 0%
    The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
Q.6.
Accumulated Depreciation appears on the
  • 0%
    balance sheet as a current liability
  • 0%
    balance sheet in the property, plant, and equipment section
  • 0%
    balance sheet in the noncurrent assets section
  • 0%
    before the retained earnings statement and balance sheet
Q.7.
The first item appearing on the statement of retained earnings is
  • 0%
    the beginning balance of retained earnings
  • 0%
    current liabilities and long-term liabilities
  • 0%
    current assets and property, plant, and equipment
  • 0%
    adding investments plus net income less dividends
Q.8.
The accounting cycle requires three trial balances be done. In what order should they be prepared?
  • 0%
    un-adjusted, adjusted, postclosing
  • 0%
    debit Income Summary; credit Insurance Expense
  • 0%
    The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
  • 0%
    an adjusted trial balance is prepared
Q.9.
Of the following steps of the accounting cycle, which step should be completed last?
  • 0%
    un-adjusted, adjusted, postclosing
  • 0%
    the net income or net loss for the period
  • 0%
    an adjusted trial balance is prepared
  • 0%
    The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
Q.10.
Prepaid insurance is reported on the balance sheet as a
  • 0%
    current assets and property, plant, and equipment
  • 0%
    no financial statement
  • 0%
    current liabilities and long-term liabilities
  • 0%
    current asset
Q.11.
Which of the following is not an essential part of the accounting records?
  • 0%
    service revenue
  • 0%
    fees earned
  • 0%
    the closing enteries
  • 0%
    the end-of-period spreadsheet
Q.12.
The statement of retained earnings should be prepared
  • 0%
    adding investments plus net income less dividends
  • 0%
    current assets and property, plant, and equipment
  • 0%
    after the income statement and before the balance sheet
  • 0%
    after the income statement and the retained earnings statement
Q.13.
Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?
  • 0%
    fees earned
  • 0%
    Prepaid Insurance
  • 0%
    income summary
  • 0%
    service revenue
Q.14.
An end-of-period spreadsheet includes columns for
  • 0%
    the closing enteries
  • 0%
    current asset
  • 0%
    the clearing account
  • 0%
    adjusting entries
Q.15.
Which one of the fixed asset accounts listed below will not have a related contra asset account?
  • 0%
    fees earned
  • 0%
    land
  • 0%
    prepaid insurance
  • 0%
    service revenue
Q.16.
Notes receivable due in 390 days appear on the
  • 0%
    balance sheet in the property, plant, and equipment section
  • 0%
    balance sheet as a current liability
  • 0%
    balance sheet in the noncurrent assets section
  • 0%
    before the retained earnings statement and balance sheet
Q.17.
Which of the following account groups are nominal accounts?
  • 0%
    current assets and property, plant, and equipment
  • 0%
    the end-of-period spreadsheet
  • 0%
    service revenue
  • 0%
    Rent Revenue, Fees Earned, Miscellaneous Expense
Q.18.
Which of the accounts below would be closed by posting a debit to the account?
  • 0%
    fees earned
  • 0%
    income summary
  • 0%
    the closing enteries
  • 0%
    Service Revenue
Q.19.
Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?
  • 0%
    the closing enteries
  • 0%
    prepaid insurance
  • 0%
    service revenue
  • 0%
    income summary
Q.20.
The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be:
  • 0%
    fiscal year that ends when business activities are at their lowest point
  • 0%
    adding investments plus net income less dividends
  • 0%
    Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925
  • 0%
    debit Income Summary; credit Insurance Expense
Q.21.
On which financial statement will Income Summary be shown?
  • 0%
    adjusting entries
  • 0%
    Rent Revenue, Fees Earned, Miscellaneous Expense
  • 0%
    no financial statement
  • 0%
    the end-of-period spreadsheet
Q.22.
Debts listed as current liabilities are those that
  • 0%
    Rent Revenue, Fees Earned, Miscellaneous Expense
  • 0%
    balance sheet in the noncurrent assets section
  • 0%
    balance sheet in the property, plant, and equipment section
  • 0%
    will be paid in less than one year
Q.23.
Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?
  • 0%
    Prepaid Insurance
  • 0%
    service revenue
  • 0%
    fees earned
  • 0%
    the closing enteries
Q.24.
Balance sheet accounts
  • 0%
    balance sheet as a current liability
  • 0%
    the clearing account
  • 0%
    are called real accounts
  • 0%
    the closing enteries
Q.25.
The classified balance sheet will show which liability subsections?
  • 0%
    the beginning balance of retained earnings
  • 0%
    adding investments plus net income less dividends
  • 0%
    current liabilities and long-term liabilities
  • 0%
    current assets and property, plant, and equipment
Q.26.
The income statement is prepared from
  • 0%
    revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last
  • 0%
    before the retained earnings statement and balance sheet
  • 0%
    either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet
  • 0%
    after the income statement and the retained earnings statement
Q.27.
Which of the items below does not appear on the end-of-period spreadsheet?
  • 0%
    fees earned
  • 0%
    service revenue
  • 0%
    the closing enteries
  • 0%
    prepaid insurance