question archive 130) The adjusted trial balance contains information pertaining to: A
130) The adjusted trial balance contains information pertaining to: A
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130) The adjusted trial balance contains information pertaining to:
A. Asset accounts only
B. Balance sheet accounts only
C. Income statement accounts only
D. All general ledger accounts
E. Revenue accounts only
131. Financial statements are typically prepared in the following order:
A. Balance sheet, statement of retained earnings, income statement
B. Statement of retained earnings, balance sheet, income statement
C. Income statement, balance sheet, statement of retained earnings
D. Income statement, statement of retained earnings, balance sheet
E. Balance sheet, income statement, statement of retained earnings
132. A balance sheet that places the assets above the liabilities and equity is called a(n):
A. Report form balance sheet
B. Account form balance sheet
C. Classified balance sheet
D. Unadjusted balance sheet
E. Unclassified balance sheet
133. Which of the following statements regarding financial statement preparation is false?
A. Financial statements can be prepared from information in the adjusted trial balance
B. The Sarbanes-Oxley Act requires that financial statements filed with the Securities and Exchange Commission include declarations by the CEO and CFO of the company
C. It makes sense to prepare the balance sheet first because it contains information needed on the income statement
D. When preparing financial statements an adjusted trial balance is easier to work with than the entire ledger
E. The income statement is prepared first.
134. The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the retained earnings account is the:
A. Income Summary account
B. Closing account
C. Balance column account
D. Contra account
E. Nominal account
135. Awn Services paid a dividend of $8,700 during the current year. The entry to close the dividend account at the end of the year is:
A.
|
Dividends |
8,700 |
|
|
Cash |
|
8,700 |
B.
|
Retained earnings |
8,700 |
|
|
Dividends |
|
8,700 |
C.
|
Dividends |
8,700 |
|
|
Retained earnings |
|
8,700 |
D.
|
Common Stock |
8,700 |
|
|
Dividends |
|
8,700 |
E.
|
Income Summary |
8,700 |
|
|
Retained earnings |
|
8,700 |
136. A company had revenues of $75,000 and expenses of $62,000 for the accounting period. Which of the following entries could not be a closing entry?
A.
|
Income Summary |
13,000 |
|
|
Retained earnings |
|
13,000 |
B.
|
Income Summary |
75,000 |
|
|
Revenues |
|
75,000 |
C.
|
Revenues |
75,000 |
|
|
Income Summary |
|
75,000 |
D.
|
Expenses |
62,000 |
|
|
Income Summary |
|
62,000 |
E. All of the above are possible closing entries
137. The following information is available for the Travis Travel Agency. After the closing entries have been journalized and posted, what will be the balance in the Retained Earnings account?
|
Total revenues |
$125,000 |
|
Total expenses |
60,000 |
|
Retained earnings |
80,000 |
|
Dividends |
15,000 |
A. $65,000
B. $80,000
C. $130,000
D. $145,000
E. $280,000
138. The Retained Earnings account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800 and dividends are $9,000, what is the ending balance in the Retained Earnings account after all closing entries are made?
A. $8,000
B. $15,400
C. $23,400
D. $17,000
E. $32,400
139. The Income Summary account is used:
A. To adjust and update asset and liability accounts
B. To close the revenue and expense accounts
C. To determine the appropriate dividend amount
D. In some situations to replace the income statement
E. To replace the retained earnings account in some businesses
