Question 1

Match the term and the definition.There are more definitions than terms.

-1 Net loss

Accepted Answer

A)  When revenue minus expenses is a negative number.
B)  Adds new values into the balance sheet and income statement accounts.
C)  Also known as transportation and storage expense.
D)  An income account that is only open long enough to record one transaction.
E)  The level of profit before considering income tax.F) A journal entry that eliminates an account from the chart of accounts.G) Lists the balances of all accounts to check that revenues equal expenses.H) The amount at which an asset or liability is reported in the financial statements.I) An account that is paired with another account whose book value it reduces.J) Lists the balances of all accounts to check that debits equal credits.K) The number of years that a company has to pay back its loans and other financing.L) A journal entry that transfers net income or loss to the retained earnings account.M) Converts some of an asset's or liability's book value into an expense or revenue.N) When a company lowers the price of a product.O) An account that must have a zero balance after closing entries have been made.P) The level of revenue a company has before it pays administrative expenses.Q) K) and M)
R) F) and L)

Question 2

Trial balances are prepared after the financial statements to verify that the numbers are accurate.

Accepted Answer

A) True 
 B)False

Question 3

The primary purpose of the adjusted trial balance is to see whether revenues are greater than expenses.

Accepted Answer

A) True 
 B)False

Question 4

Insert the appropriate letter into the correct blank to describe the type of adjustment required at the end of April and the effect it has on expenses or revenues and assets or liabilities.
 $$\begin{array} { | l | l | } 
\hline \text { Anjernent tyee } & \text { Dffect an Account } \
\hline \text { A Accrual } & \text { E. Reverue rises and asset rises. } \
\hline \text { D. Deferal } & \text { F. Expense rises and asset falls. } \
\hline & \text { G. Reverue rises and liability falls. } \
\hline & \text { H. Expense rises ard liability rises. } \
\hline
\end{array}$$

Accepted Answer

1.D and F
...

Question 5

The carrying value of an asset is an approximation of the asset's market value.

Accepted Answer

A) True 
 B)False

Question 6

If a company has a net loss during the current accounting period,then the post-closing retained earnings will be smaller than the pre-closing retained earnings.

Accepted Answer

A) True 
 B)False

Question 7

The Treasury Bank Corporation had retained earnings at the end of December 31,2017 of $450,000.During 2018,the company had net income of $170,000 and declared dividends of $20,000.Retained earnings on the balance sheet as of December 31,2018 will be:

Accepted Answer

A)  $430,000.
B)  $600,000.
C)  $620,000.
D)  $640,000. E) A) and B)
F) A) and D)

Question 8

Adjustments are entries made at the end of every accounting period to report revenues and expenses at the appropriate amounts and assets and liabilities in the appropriate period.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following trial balances are used as a source for preparing the income statement?

Accepted Answer

A)  Unadjusted trial balance.
B)  Pre-adjusted trial balance.
C)  Adjusted trial balance.
D)  Post-closing trial balance.E) All of the above
F) B) and C)

Question 10

The adjusted trial balance shows the end-of-year balance for Retained Earnings.

Accepted Answer

A) True 
 B)False

Question 11

Adjusting journal entries always include one balance sheet and one income statement account.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true?

Accepted Answer

A)  Retained earnings is a permanent account,while income statement accounts are temporary.
B)  Retained earnings and income statement accounts are all temporary accounts.
C)  Retained earnings and income statement accounts are all permanent accounts.
D)  Retained earnings is a temporary account,while income statement accounts are permanent accounts.E) B) and C)
F) A) and D)

Exam 4: Adjustments, financial Statements, and Financial Results

Which of the following statements is true?

Correct Answer
verified

The primary purpose of the adjusted trial balance is to see whether revenues are greater than expenses.

Correct Answer
verified

Match the term and the definition.There are more definitions than terms. -1 Net loss

Correct Answer
verified

Adjustments are entries made at the end of every accounting period to report revenues and expenses at the appropriate amounts and assets and liabilities in the appropriate period.

Correct Answer
verified

The Treasury Bank Corporation had retained earnings at the end of December 31,2017 of $450,000.During 2018,the company had net income of $170,000 and declared dividends of $20,000.Retained earnings on the balance sheet as of December 31,2018 will be:

Correct Answer
verified

The carrying value of an asset is an approximation of the asset's market value.

Correct Answer
verified

Adjusting journal entries always include one balance sheet and one income statement account.

Correct Answer
verified

Trial balances are prepared after the financial statements to verify that the numbers are accurate.

Correct Answer
verified

Which of the following trial balances are used as a source for preparing the income statement?

Correct Answer
verified

Correct Answer
verified
1.D and F
...
View Answer

If a company has a net loss during the current accounting period,then the post-closing retained earnings will be smaller than the pre-closing retained earnings.

Correct Answer
verified

The adjusted trial balance shows the end-of-year balance for Retained Earnings.

Correct Answer
verified

Exam 4: Adjustments, financial Statements, and Financial Results

Which of the following statements is true?

Correct AnswerverifiedShow Answer

The primary purpose of the adjusted trial balance is to see whether revenues are greater than expenses.

Correct AnswerverifiedShow Answer

Match the term and the definition.There are more definitions than terms. -1 Net loss

Correct AnswerverifiedShow Answer

Adjustments are entries made at the end of every accounting period to report revenues and expenses at the appropriate amounts and assets and liabilities in the appropriate period.

Correct AnswerverifiedShow Answer

The Treasury Bank Corporation had retained earnings at the end of December 31,2017 of $450,000.During 2018,the company had net income of $170,000 and declared dividends of $20,000.Retained earnings on the balance sheet as of December 31,2018 will be:

Correct AnswerverifiedShow Answer

The carrying value of an asset is an approximation of the asset's market value.

Correct AnswerverifiedShow Answer

Adjusting journal entries always include one balance sheet and one income statement account.

Correct AnswerverifiedShow Answer

Trial balances are prepared after the financial statements to verify that the numbers are accurate.

Correct AnswerverifiedShow Answer

Which of the following trial balances are used as a source for preparing the income statement?

Correct AnswerverifiedShow Answer

Correct Answerverified1.D and F...View AnswerShow Answer

If a company has a net loss during the current accounting period,then the post-closing retained earnings will be smaller than the pre-closing retained earnings.

Correct AnswerverifiedShow Answer

The adjusted trial balance shows the end-of-year balance for Retained Earnings.

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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
1.D and F
...
View Answer

Correct Answer
verified

Correct Answer
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