Question : 113. Which of the following accounts showing a balance the post-closing : 1257828

 

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.C. 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.B.  Dividends.C. Accounts Payable.D. Unearned Revenue.E. Prepaid Insurance.

115. A post-closing trial balance reports: A. 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: A. 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.E. Debit Wages Payable $7,350; credit Wages Expense $7,350.

118. The purpose of reversing entries is to: A. 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.D. 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.E. Depreciation Expense—Equipment.

121. Which of the following statements about a company’s operating cycle is not true: A. 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 Title

Dr.

Cr.

Cash

     23,000

 

Accounts receivable

     16,000

 

Prepaid insurance

       6,600

 

Equipment

   100,000

 

Accumulated Depreciation—Equipment

 

     50,000

Land

     95,000

 

Accounts payable

 

     17,000

Interest payable

 

       2,400

Unearned revenue

 

       5,000

Long-term notes payable

 

     30,000

  Common stock

Retained Earnings

 

  1,000

      135,200

Totals

   240,600

  240,600

A. $21,200.B. $45,600.C. $24,400.D. $95,600.E. $41,200.

 

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