TEST Classified balance sheet

Document Sample
TEST Classified balance sheet Powered By Docstoc
					                                                         Chapter 6, TEST 6B

                                       Name    _________________________
                                       Date    _________________________
                                        SCORING RECORD
                                                       Total                 Student
                                           Section   Possible   Deductions    Score
                                             A          30
                                             B          30
                                             C          10
                                             D          30
                                           Total       100

                               Section A

DIRECTIONS: Each of the following statements is true or false.
Indicate your choice by writing in the Answers column T for a true
answer or F for a false answer. (2 points for each correct answer)
                                                      Answers   Scoring
1. If there are additional investments, the work
    sheet supplies all the necessary information to
    do the financial statements.                       _____       _____
2. A statement of owner's equity is a statement
    summarizing all of the changes in owner's equity
    during a specified period of time.                 _____       _____
3. A balance sheet that classifies items by
    similarities is called a classified balance
    sheet.                                             _____       _____
4. The heading for all financial statements includes
    the name of the business, the title of the
    statement, and a specific date or time period.     _____       _____
5. Obligations that need not be paid for a long
    time, usually more than one year, are classified
    as long-term liabilities.                          _____       _____
6. Long-term liabilities may also be called
    long-term debt.                                    _____       _____
7. Assets, liabilities, and owner's equity are
    permanent accounts.                                _____       _____
8. Revenues and expenses are permanent accounts and
    are closed at the end of the accounting period.    _____       _____
9. Adjustments at the end of the fiscal period do
    not need to be journalized and posted if a work
    sheet has been prepared.                           _____       _____
10. Accounting cycle is another name for operating
    cycle.                                             _____       _____
11. To close temporary accounts with debit balances,
    credit the account for its balance and debit the
    income summary account for the same amount.        _____       _____
12. Adjusting entries are journalized and posted
    after closing entries.                             _____       _____
13. A separate explanation for each closing entry is
    necessary.                                         _____       _____
14. Upon completion of the closing, the revenue
    accounts and the expense accounts will be the
    only accounts with balances.                       _____       _____

15. After posting the closing entries, a post-
    closing trial balance should be prepared.          _____      _____

                               Section B

Directions: Complete each of the following statements by writing in
the Answers column the letter of the word or words that correctly
completes each statement. (3 points each)
                                                      Answers   Scoring
1. The work sheet is used at the end of the
    accounting period to: (A) journalize adjusting
    entries; (B) prepare financial statements;
   (C) journalize closing entries; (D) none of
    these; (E) all of these.                           _____      _____
2. The total revenue of the month of June amounted
    to $8,500, total expenses amounted to $3,500,
    withdrawals amounted to $500, and additional
    investment amounted to $2,000.The net
    income for the month amounted to: (A) $4,500;
   (B) $5,000; (C) $6,500; (D) $2,500; (E) $5,500.     _____      _____
3. Capital at the beginning of the month amounted
    to $6,000, net income for the month amounted
    to $1,000; and withdrawals for personal use
    during the month amounted to $1,500. Capital at
    the end of the month is: (A) $4,000; (B) $5,500;
   (C) $3,500; (D) $5,000; (E) $4,500.                 _____      _____
4. A balance sheet that groups similar items is
    called: (A) a report form of balance sheet;
    (B) an account form of balance sheet; (C) a
    classified balance sheet; (D) a temporary
    balance sheet; (E)a formal balance sheet.          _____      _____
5. After the accounts are closed and the journal
    entries have been posted, the following account
    would not have a balance: (A) Capital;
   (B) Accumulated Depreciation; (C) Accounts
    Payable; (D) Drawing; (E) Supplies.                _____      _____
6. The account to which drawing is closed
    is called: (A) Capital; (B) Closing Account;
    (C) Income Summary; (D) Net Income;
    (E) Drawing Expense.                               _____      _____
7. The journal entry to close expense accounts
    includes: (A) debiting the expense accounts
    and crediting the Income Summary; (B) debiting
    Income summary and crediting the expense
    accounts; (C) debiting the expense accounts
    and crediting Capital; (D) debiting the expense
    accounts and crediting the drawing account;
   (E) none of these.                                  _____      _____
8. What is the correct sequence for closing the
    temporary accounts? (A) revenue accounts,
    expense accounts, Income Summary, Drawing;
   (B) expense accounts, revenue accounts, Income
    Summary, Drawing; (C) revenue accounts,
    expense accounts, Drawing, Income Summary;
   (D) Drawing, revenue accounts, expense accounts,
    Income Summary; (E) Income Summary, Drawing,
    expense accounts, revenue accounts.                _____      _____

9.  The steps involved in handling all of the
    transactions and events completed during an
    accounting period, beginning with placing data
    in a book of original entry and ending with a
    post-closing trial balance, are referred to
    collectively as the: (A) input; (B) processing;
   (C) output; (D) accounting cycle; (E) none
    of these.                                                 _____         _____
10. What is the purpose of the post-closing trial
    balance? (A) to prove no errors were made
    while recording entries in the journal; (B)
    to prove the closing entries were recorded
    correctly in the journal; (C) to prove the
    equality of the debit and credit balances in
    the general ledger accounts; (D) to prove the
    balances in the general ledger accounts are
    correct; (E) to prove net income is correct.               _____        _____

                                  Section C

DIRECTIONS: Indicate which of the following ledger accounts are
temporary, using T, or permanent using P. (2 points each)
                                                    Answers              Scoring

A.    Accounts Payable                               _____                _____

B.    T. Lopez, Drawing                              _____                _____

C.    Service Revenue                                _____                _____

D.    Rent Expense                                   _____                _____

E.    Income Summary                                 _____                _____

                                  Section D

DIRECTIONS: Using the following T accounts, prepare closing entries in
general journal form dated July 31, 20__. Then post the closing
entries to the T accounts.

Accum. Deprec.-                 Wages                      Utilities
Office Equipment 181.1         Expense        511          Expense           533
            Bal. 260       Bal. 2,160                    Bal. 384

     Wages                Advertising                        Insurance
     Payable      219     Expense             512            Expense       535

               Bal. 620   Bal.   168                     Bal. 420

 Brian Kormann,                      Rent                       Gas and Oil
 Capital        311                Expense       521            Expense       538
         Bal. 12,500            Bal. 2,100                     Bal. 216

 Brian Kormann,                   Supplies                     Deprec. Exp.-
 Drawing        312               Expense        523           Office Equip 541

Bal. 4,500                       Bal.   844                    Bal. 260

 Income                           Telephone                     Miscellaneous
 Summary         313              Expense        525            Expense       549

                                  Bal. 306                     Bal. 256

 Fees                   401
              Bal.     12,550

                         GENERAL JOURNAL
DATE                   DESCRIPTION              REF    DEBIT        CREDIT

Shared By: