DeAnza College

ACCT 1A

CHAPTER 4

1)Accumulated Depreciation appears on the a.balance sheet in the long-term liabilities section b.income statement as an operating expense

c.balance sheet in the property, plant, and equipment section

d.balance sheet in the current assets section

2. Unearned fees appear on the a.balance sheet as a current liability b.income statement as revenue

c.balance sheet in the owner's equity section d.balance sheet in the current assets section

3. Of the following steps of the accounting cycle, which step should be completed first? a.Adjusting entries are journalized and posted to the ledger.

b.Closing entries are journalized and posted to the ledger.

c.Transactions are posted to the ledger.

2. Financial statements are prepared.

4. Which of the following accounts should be closed to the capital account at the end of the year?

a.Service Revenue b.Prepaid Insurance c.Unearned Rent d.Equipment

5. Which of the following accounts ordinarily appears in the post-closing trial balance? a.Fees Earned

b.Unearned Rent

c.Zane White, Drawing d.Supplies Expense

6. The journal entry to close Fees Earned, $737, and Rent Revenue, $163, accounts during the year-end closing process would be

a.

Revenues                                                                   $900

Owner's Capital                                                                              $900

b.

Owner's Capital                                                $900

Revenues                                                                                     $900

c.

Fees Earned                                                              $737

Rent Revenue                                                          $163

Owner's Capital                                                                              $900

d.

Owner's Capital                                                    $900

Fees Earned                                                                                   $737

Rent Revenue                                                                               $163

7. Use the adjusted trial balance for Stockton Company to answer the question that follow.

Use the adjusted trial balance for Stockton Company. Determine the net income (loss) for the period.

a.Net income is $27,107. b.Net loss is $4,113. c.Net loss is $7,138. d.Net income is $4,113.

8. What is the major difference between the unadjusted trial balance and the adjusted trial balance?

a.The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.

b.The adjusted trial balance will show the net income (loss) as an additional account. c.Unlike the adjusted trial balance, the unadjusted trial balance will continue with the

end-of-period processing even if it is not in balance.

d.The adjusted trial balance will be used to record the adjustments for the period.

9. The first item appearing on the statement of owner's equity is

a.the beginning balance of owner's equity

b.the ending balance of owner's equity c.net income

d.owner withdrawals

10. The classified balance sheet will show which asset subsections? a.current liabilities and short-term assets

b.other revenues and property, plant and equipment