ACC 100 Unit 2 Milestone Sophia course

1

When preparing a trial balance worksheet, what step would Tom complete next if he has already prepared a trial balance, adjusted entries and prepared an adjusted trial balance?

 

Close temporary accounts

 

Prepare a balance sheet

 

Make closing entries

 

Prepare an income statement

 

End of Period Activities

2

If Karla spent $200 on Wednesday to have the windows in her building washed, recorded the accounting event that afternoon and on Friday paid $550 for a repair to the water heater and recorded that event on Friday evening, which of the accounting principles below is she following?

 

Full Disclosure Principle

 

Cost Principle

 

Time Period Principle

 

Expense Recognition Principle

 

ual Framework and Principles

3

If James' records show $70,000 in revenue, $34,000 in liabilities, $90,000 in assets and $19,000 in equity, which of the figures should be included on his income statement?

 

$90,000

 

 

$34,000

 

 

$19,000

 

$70,000

 

 

Income Statement

4

If Megan has completed the drawing closing entry, which of the following will she complete next in the closing process?

 

Prepare a post closing trial balance of the account

 

Prepare the balance of the income summary account

 

Prepare an earnings summary

 

Prepare a revenue closing entry

 

Closing Entries

5

What type of adjustment will Kyle make to his trial balance worksheet for $2,500 he was paid on October 12, for work that he will start on December 1?

 

Depreciation

 

Unearned revenue

 

 

Accrued revenues

 

 

Supplies

 

 

Adjusting Entries

6

What is the total of the owner's equity if the balance sheet shows liabilities of $46,000 and assets of $83,000?

 

$8,000

 

$37,000

 

$9,000

 

$120,000

 

Preparing Balance Sheets

7

Which image below correctly shows a trial balance worksheet?

 

 

 

 

 

Trial Balance

8

Which description below corresponds to the Time Period Assumption Principle?

 

Businesses are required to report all revenue generated by shareholders.

 

Businesses are required to report details found in financial statements that could affect decision makers.

 

Businesses are required to report financial statements on a consecutive and regular basis.

 

Businesses are required to report financial statements to the government at the end of each fiscal year.

 

ual Framework and Principles

9

If Tracy recorded $9,000 as liabilities and $51,000 as equity in a balance sheet she created, which of the following is the correct total of Tracy’s assets?

 

$60,000

 

$9,000

 

$51,000

 

$42,000

 

Preparing Balance Sheets

10

Jennifer has a truck that she uses to deliver goods sold by her business. At the end of the year, Jennifer will record $6,000 for depreciation of the truck. 

 

What two types of accounts will be affected by this adjusting entry?

 

An expense account and a liability account

 

A liability account and an owner's equity account

 

An asset account and an expense account

 

A payable account and an asset account

 

Creating Adjusting Entries

11

If Lyle has $4,000 in liabilities, $12,000 in assets, $2,000 in expenses and $17,000 in equity, which figure should he include on his income statement?

 

 

$12,000

 

 

$2,000

 

 

$17,000

 

$4,000

 

 

Preparing Income Statements

12

 

 

What is the total owner drawings in the statement of changes in owner's equity that Cindy drafted for her cooking store, shown here?

 

$12,000

 

$8,000

 

$6,000

 

$10,000

 

Statement of Changes in Owner's Equity

13

What is the total of Tim’s liabilities if he has recorded $50,000 in assets and $40,000 equity on a balance sheet?

 

$20,000

 

$10,000

 

$100,000

 

$90,000

 

Preparing Balance Sheets

14

Which of the following correctly shows a balance sheet?

 

 

 

 

 

Balance Sheet

15

Which of the following is NOT true about closing entries?

 

Temporary accounts are closed to ensure accurate summary reporting.

 

Closing entries are posted to the general ledger accounts. 

 

Closing entries are created to show changes in equity.

 

Temporary account balances are carried over to the next accounting period.

 

Closing Entries

16

Beginning Assets

Beginning Revenues

Beginning Balance

Liabilities

Capital Added/Investment During the Period

Net Income/Net Loss

Drawings

Expenses

Ending Balance/Owner's Capital

 

Which of the above accounts would be included in the Statement of Changes in Owner's Equity?

 

Beginning Balance

Capital Added/Investment During the Period

Net Income/Net Loss

Drawings

Ending Balance/Owner's Capital

 

Beginning Revenues

Expenses

Ending Balance/Owner's capital

 

Beginning Balance

Expenses

Ending Balance/Owner's Capital

 

Beginning Assets

Capital Added/Investment During the Period

Liabilities

Ending Balance/Owner's Capital

 

Statement of Changes in Owner's Equity

17

The employees of Catherine's business earned $22,800 in wages during December, but the next payday is not until January 2nd.  

 

When Catherine makes an adjustment on her December 31st trial balance worksheet to account for these wages, what two types of accounts will be affected?

 

Owner's equity and a payable account

 

A payable account and a revenue account.

 

An expense account and a payable account

 

An asset account and an expense account 

 

Creating Adjusting Entries

18

Which of the following is Sue’s ending owner’s equity, in her statement of changes in owner's equity, if her records show $21,000 in investment by owner, $78,000 in net income, $18,000 in expenses and $14,000 in owner drawings?

 

$57,000

 

$96,000

 

$85,000

 

$53,000

 

Preparing Statements of Changes in Owner's Equity

1

Which image below correctly shows a trial balance worksheet?

 

 

 

 

 

Trial Balance

2

What type of adjustment will building management make to their trial balance worksheet for the $3,000 they paid their landscaper up front for work that totaled $12,000?

 

Depreciation

 

 

Supplies

 

 

Unearned revenue

 

 

Prepaid expenses

 

 

Adjusting Entries

3

On September 30, 2018, Grover began preparing a trial balance worksheet.

 

Which step occurs immediately after he prepares the income statement?

 

Adjusting Entries

 

 

Trial Balance

 

 

Balance Sheet

 

 

Closing Entries

 

 

End of Period Activities

4

 

 

What is the total owner drawings in the statement of changes in owner's equity that Cindy drafted for her cooking store, shown here?

 

$6,000

 

 

$12,000

 

 

$10,000

 

 

$8,000

 

 

Statement of Changes in Owner's Equity

5

When an accountant makes sure that expenses are recorded when they are incurred, and compares those expenses to revenues for the same period, he is observing the ________ principle.

 

cost

 

 

matching

 

 

full disclosure

 

 

time period

 

 

ual Framework and Principles

6

What is the correct time of the month to make an adjusting entry?

 

After preparing the balance sheet

 

 

At the beginning of the month

 

 

At the end of the month

 

 

Whenever the accounts need to be brought into balance

 

 

Closing Entries

7

What is the total of the owner's equity if the balance sheet shows liabilities of $38,000 and assets of $74,000?

 

$38,000

 

 

$112,000

 

 

$2,000

 

 

$36,000

 

 

Preparing Balance Sheets

8

The statement of changes in owner's equity is a financial statement _______________ that provides information about changes to the equity of a business for ___________________.

 

prepared third, a specific date

 

 

prepared third, a given time period

 

 

prepared first, a specific date

 

 

prepared second, a given time period

 

 

Statement of Changes in Owner's Equity

9

Which of the following correctly shows a balance sheet?

 

 

 

 

 

Balance Sheet

10

What are the total liabilities of John's Tackle if the total assets are $142,000 and the equity is $39,000?

 

$181,000

 

 

$220,000

 

 

$284,000

 

 

$103,000

 

 

Preparing Balance Sheets

11

The employees of Catherine's business earned $22,800 in wages during December, but the next payday is not until January 2nd.  

 

When Catherine makes an adjustment on her December 31st trial balance worksheet to account for these wages, what two types of accounts will be affected?

 

An asset account and an expense account 

 

 

An expense account and a payable account

 

 

Owner's equity and a payable account

 

 

A payable account and a revenue account.

 

 

Creating Adjusting Entries

12

What is Bill’s ending owner’s equity on a statement of changes in owner's equity if his records show $8,000 in investment by owner, $25,000 in net income, $9,000 in expenses and $4,000 in owner drawings?

 

$24,000

 

 

$38,000

 

 

 

 

$29,000

 

 

 

 

$46,000

 

 

 

 

Preparing Statements of Changes in Owner's Equity

13

If Megan has completed the drawing closing entry, which of the following will she complete next in the closing process?

 

Prepare the balance of the income summary account

 

 

Prepare a post closing trial balance of the account

 

 

Prepare an earnings summary

 

 

Prepare a revenue closing entry

 

 

Closing Entries

14

The end of the period is January 31st. Wages of $800 are owed as of this date.

 

The adjusting entry for this is __________.

 

a credit to Wages Expense and a debit to Cash, both for $800

 

 

a debit to Wages Expense and a credit to Wages Payable, both for $800

 

 

a debit to Wages Payable and a credit to Wages Expense, both for $800

 

 

a debit to Wages Expense and a credit to Cash, both for $800

 

 

Creating Adjusting Entries

15

Johanna recently took over her father's business. She considered changing the date when she records and reports the business' financial results. Her accountant advised her not to do this.

 

Which accounting principle is the basis of the accountant's advice?

 

Measurement

 

 

Matching

 

 

Time period

 

 

Full disclosure

 

 

ual Framework and Principles

16

If James' records show $70,000 in revenue, $34,000 in liabilities, $90,000 in assets and $19,000 in equity, which of the figures should be included on his income statement?

 

$19,000

 

 

$90,000

 

 

 

 

$34,000

 

 

 

 

$70,000

 

 

 

 

Income Statement

17

 

 

If Rose is preparing an income statement with $7,000 in owner's equity, what should she record as her total revenue?

 

$102,000

 

 

$122,000

 

 

$129,000

 

 

$115,000

 

 

Preparing Income Statements

18

What is the total of Tim’s assets if he has recorded $9,000 in liabilities and $3,000 as equity on a balance sheet?

 

$3,000

 

 

$6,000

 

 

$15,000

 

 

$12,000

 

 

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Status NEW Posted 18 Apr 2020 11:04 AM My Price 15.00

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