Question :
113.Which of the following accounts showing a balance the post-closing : 1258756
113.Which of the following accounts showing a balance on the post-closing trial balance indicate an error?
A.Office Equipment.
B.Accumulated Depreciation-Office Equipment.
Depreciation Expense-Office Equipment.
D.Retained Earnings.
E.Salaries Payable.
114.Which of the following accounts showing a balance on the post-closing trial balance indicate an error?
A.Land.
Dividends.
C.Accounts Payable.
D.Unearned Revenue.
E.Prepaid Insurance.
115.A post-closing trial balance reports:
All permanent ledger accounts with balances.
B.All nominal ledger accounts with balances.
C.All temporary and permanent ledger accounts with balances.
D.Only revenue and expense accounts.
E.Only asset accounts.
116.Reversing entries:
Are optional.
B.Are mandatory.
C.Correct errors in journal entries.
D.Are required by GAAP.
E.Are prepared on the worksheet.
117.Kline Company, Inc. accrued wages of $7,350 that were earned by employees unpaid at the end of 2014. Assuming Kline uses reversing entries, which of the following entries is appropriate for reversing the accrued wages at the beginning of 2015?
A.Debit Wages Expense $7,350; credit Cash $7,350.
B.Debit Wages Expense $7,350; credit Wages Payable $7,350.
C.Debit Wages Payable $7,350; credit Cash $7,350.
D.Debit Cash $7,350; credit Wages Expense $7,350.
Debit Wages Payable $7,350; credit Wages Expense $7,350.
118.The purpose of reversing entries is to:
Simplify a company’s recording of certain journal entries in the future.
B.Correct errors made in previous journal entries.
C.Ensure that closing entries have been properly posted to the ledger accounts.
D.Make certain that only permanent accounts are carried forward into the next accounting period.
E.Complete a required step in the accounting cycle.
119.Temporary accounts include all of the following except:
A.Consulting revenue.
B.Dividends.
C.Rent expense.
Prepaid rent.
E.Income Summary.
120.Permanent accounts include all of the following except:
A.Accumulated Depreciation—Equipment.
B.Prepaid Insurance.
C.Unearned Revenue.
D.Accounts Receivable.
Depreciation Expense—Equipment.
121.Which of the following statements about a company’s operating cycle is not true:
Non-current items are those expected to come due within one year or the company’s operating cycle.
B.The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.
C.The length of a company’s operating cycle depends on its activities.
D.For a merchandiser selling products, the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
E.Most operating cycles are less than one year.
122.Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company, Inc.:
Account TitleDr.Cr.
Cash23,000
Accounts receivable16,000
Prepaid insurance6,600
Equipment100,000
Accumulated Depreciation—Equipment50,000
Land95,000
Accounts payable17,000
Interest payable2,400
Unearned revenue5,000
Long-term notes payable30,000
Common stock1,000
Retained Earnings135,200
Totals240,600240,600
A.$21,200.
$45,600.
C.$24,400.
D.$95,600.
E.$41,200.
Current Assets = Cash + Accounts Receivable + Prepaid InsuranceCurrent Assets = $23,000 + $16,000 + $6,600 = $45,600
