Which of the following statements is true? The closing entries are usually prepared prior to A. October 1, 2011--Golden Corporation borrowed $100,000 and signed a note providing for 8% interest. Which of the following is true about the movement of ions across Which of the following is not a type of adjusting entry? Which of the following correctly describes the closing entry process? A. Following a review of receivables, Phil has decided to write off the following irrecoverable debts: Phil would like to provide against a specific debt of $250 andbased on past experience, make a general allowance at 2% of receivables.The current balance on the allowance for receivables account is $2,000.Phil also received $300 from a debt that had been previously beenwritten off. Which of the following accounts is a temporary account? Which of the following correctly describes the closing entry process? The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the. Financial statements can be prepared directly from the. A scientist is studying the effects of fertilizer on the rate of transpiration in tomato plants. 92. At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. The length of service of a productive asset. Balance sheet accounts whose balances are carried forward to the next accounting period. B. While you should have been learning throughout the project, now is a great time to look back without the pressure and distractions that might have dulled your focus.Gather the core team to invite feedback about what worked, and what didn’t. As a general representation of this process, assume that one prepays $300 on June 1 to receive three months of lawn mowing service. Encourage honesty. Permanent accounts are reset to zero. Play this game to review Photosynthesis. Accounting time periods are generally a month, a quarter, or a year. Accounting basis in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, even if cash was not exchanged, Expenses incurred but not yet paid in cash or recorded, Revenues for services performed but not yet received in cash or recorded, A list of accounts and their balances after all adjustments have been made, Entries made at the end of an accoutning period to ensure that the revenue recognition and matching principles are followed, The difference between the cost of a depreciatable asset and its related accumulated depreciation, Accounting basis in which a company records revenue only when it receives cash, and an expense only when it pays cash, Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account, Retained Earnings, an account that is offset against an asset account on the balance sheet, The process of allocating the cost of an asset to expense over its useful life. 102.What is the purpose of adjusting entries? Which of the following statements best describes the level to which CIs would normally be broken down: 31/38 32. Risen Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $50,000 from … Accountants may perform the closing process monthly or annually. 104.On November 1, 2011, Bug Busters collected $6,000 in advance for three months of service to be provided, beginning on that date. The closing process reduces the balances in the permanent accounts to zero at the end of each period. Which principle dictates that efforts (expenses) be matched with results (revenues)? Which of the following correctly describes the accounts reported on the post-closing trial balance? Which of the following correctly describes the closing entry process? Which one of the following accounts would not be closed at the end of the accounting year? Which of the following account balances would be closed at year-end? Which of the following is not based on accrual accounting? Give two examples of accruals and deferrals. Practice Question 48 Which of the following correctly describes the closing process? If revenues are recognized only when a customer pays, what method of accounting is being used? A new accountant was hired by the sports franchise in late May. 60) _____ A) Y moves out of the cell as sodium moves into the cell. During the fiscal year ended 2010, a company had revenues of 400,000 expenses of 280,000 and an income tax rate of 30 percent. Which one of these statements about the accrual-basis of accounting is false? This preview shows page 15 - 19 out of 104 pages. C. Permanent accounts become ready to 6. EXPENSES PAID IN CASH THAT BENEFIT MORE THAN ONE ACCOUNTING PERIOD AND THAT ARE RECORDED AS ASSETS, Indicates the level of full and transparent information that a company provides to users of its financial statements, The principal that companies recognize revenue in the accounting period in which the performance obligation is satisfied, an entry made at the beginning of the next accounting period; the exact opposite of the adjusting entry made in the previous period, Revenue, expense, and dividend accounts whose balances a company transfers to Retained Earnings at the end of an accounting period. Which of the following statements about the closing process is correct? Net income or net loss is transferred to Retained Earnings. Report the financial position of the reporting entity at a particular point in time. Accounting Tools for Business Decision Making. A trial balance prepared after the closing entries have been posted would show a zero balance in which one. An accounting period that is one year in length, A temporary account used in closing revenue and expense accounts. An assumption that the economic life of a business can be divided into artificial time periods. Net income or net loss is transferred to the Cash account. The principal and interest are due in one year (on September 30, 2012). 7. Which of the following describes the primary objective of a balance sheet? Permanent accounts become ready to accumulate data in the next accounting period. Study Chapter 11 Part 9 (multiple choice) flashcards from Mark Jacobsen's class online, or in Brainscape's iPhone or Android app. The closing … A. No adjusting entries have been made. It looks like your browser needs an update. Which of the following correctly describes the closing entry process? B After closing … Quizzes 1 and 2 with Answers and Explanations, University of Southern California • BUAD 286a, San Jose State University • ACCOUNTING 110, ACC 349 Week 4 Learning Team Assignment P7-1A And BYP6-2. B. plant cells only. Which account will have a zero balance after a company has journalized and posted closing entries? A list of permanent accounts and their balances after a company has journalized and posted closing entries. Which of the following correctly describes a step in the closing process? • Read about this '../ Step#1 o-:i '../ Identify accounts to be L../ The closing entry process consists of closing, All of the following are required steps in the accounting cycle except, The final step in the accounting cycle is to prepare. B. The closing entries are usually prepared prior to the a. on December 31, 2011 (assuming that no adjusting entries have been made during the year). C. animal cells only. Updated for the Changes to the PMP Exam from 31-August-2011. Net income or net loss is transferred to the Cash account. Net income or net loss is transferred to Retained Earnings. Which of the following account balances would not be closed at year-end by debiting the account? Adjusting entries are made to ensure that, Each of the following is a major type (or category) of adjusting entry except. Which of the following correctly describes the B. December 31, 2011--end of the annual accounting period. Prepare the adjusting entry required. Cash received before services are performed which is recorded as a debit to a Cash account and a credit to a liability account is called. The closing process reduces the balances in the permanent accounts to zero at the end of each period. 100.Which of the following isn't a correct closing entry? By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly. A. The planned timing of revenues, expenses, gains, and losses to smooth out bumps in net income. Log in for more information. Prepare the journal entry for each of the following transactions. a)Partners of an LLC are NOT allowed to purchase a company's stock shares, while partners of an LLP are allowed to purchase a company's stock Biology 1 End-of-Course Assessment Practice Test For Multiple Choice Items, circle the correct response.! Describe permanent and temporary accounts. The difference between an asset's cost and its accumulated depreciation is called, Cash received before services are performed are recorded as, If the adjusting entry is not made for unearned revenues the result will be to. While conducting PMP Exam Preparation workshops, I have noticed that many participants are confused about the Contract Closure (Close Procurements) and Administrative Closure (Close Project or Phase) processes. Which of the following correctly describes the closing entry process? Cash received and a liability recorded before services are performed. A net loss will appear in which column of the worksheet? Saira works for a sports franchise which pays wages and salaries earned on a monthly basis. Course Hero is not sponsored or endorsed by any college or university. The annual accounting period ends December, 31. Each revenue and each expense account is closed individually to Retained Earnings. Which of the following is not included in the computation of net cash provided by operating activities? The following best describes a closing entry: It's an entry made in the general journal to close a temporary ledger account. The Accounting Cycle The sequence of activities beginning with the occurrence of a transaction is known as the accounting cycle.This process is shown in the following diagram: Adjusting Entries Adjusting entries are made for Oh no! To ensure the best experience, please update your browser. 35 out of 43 people found this document helpful. Which one of the following is not a justification for adjusting entries? A multiple-column form that companies may use in the adjustment process and in preparing financial statements. 15. Which of the following statements best describes photosynthesis? A calendar year reporting company preparing its annual financial statements should use the phrase "As of December 31, 2011" in the heading of which financial statements? Which statement is incorrect concerning the adjusted trial balance? Which types of accounts will appear in the post-closing trial balance? B. A. The closing entries are usually prepared prior to C. 16. Which is the correct order of steps in the accounting cycle? Multiple Choice C) The closing process creates a zero balance at the end of each period for all accounts on the year-end trial balance. Which of the following correctly pairs a term with its definition? Net income or net loss is transferred to the Cash account. A)Extension-bending the leg at the knee to bring the heel closer to the buttocks B)Abduction-lifting the arm out to the side of the body so that it is parallel to the ground D. neither plant nor animal cells. B. If you run into questions or concerns during the claims process, you can always contact us on our website or by phone at 1.855.621.6262 to get the … Managing a project isn’t only about tasks and resources, budget and deadlines, it’s an experience you can constantly learn from. A. The principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues. Which of the following correctly describes the closing process?-Net income or net loss is transferred to Retained Earnings 38.The closing entry process consists of closing: A. all temporary accounts B. 1.Which of the following correctly describes the difference between an LLP and an LLC? 105.Below are two related transactions for Golden Corporation. 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