Question 1

A post-closing trial balance:

Accepted Answer

A)  Is a list of all accounts and their balances after adjusting entries.
B)  Is a list of all accounts and their balances before adjusting entries.
C)  Is a list of all accounts and their balances after closing entries.D) None of the above
E) All of the above

Question 2

Which of the following statements is true regarding the post-closing trial balance?

Accepted Answer

A)  The post-closing trial balance will be distributed to investors and other stakeholders along with the financial statements.
B)  The post-closing trial balance is a report prepared before the adjustments and the financial statements to prove that debits equal credits.
C)  The post-closing trial balance is an internal report prepared as the last step in the accounting cycle.D) A) and B)
E) None of the above

Question 3

An adjusted trial balance:

Accepted Answer

A)  Is a list of all accounts and their balances after adjusting entries.
B)  Is a list of all accounts and their balances before adjusting entries.
C)  Is a list of all accounts and their balances after closing entries.D) A) and B)
E) B) and C)

Question 4

When the amount of interest receivable decreases during an accounting period:

Accepted Answer

A)  Accrual-basis revenues exceed cash collections from borrowers.
B)  Accrual-basis net income exceeds cash-basis net income.
C)  Accrual-basis revenues are less than cash collections from borrowers.D) B) and C)
E) A) and B)

Question 5

Which of the following is true about an income statement?

Accepted Answer

A)  It reports activity for a period of time.
B)  It does not include dividends paid.
C)  It reports revenues and expenses.
D)  All of the other answers are true.E) C) and D)
F) None of the above

Exam 3: The Accounting Cycle: End of the Period

Which of the following is true about an income statement?

Correct Answer
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An adjusted trial balance:

Correct Answer
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Which of the following statements is true regarding the post-closing trial balance?

Correct Answer
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A post-closing trial balance:

Correct Answer
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When the amount of interest receivable decreases during an accounting period:

Correct Answer
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Exam 3: The Accounting Cycle: End of the Period

Which of the following is true about an income statement?

Correct AnswerverifiedShow Answer

An adjusted trial balance:

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding the post-closing trial balance?

Correct AnswerverifiedShow Answer

A post-closing trial balance:

Correct AnswerverifiedShow Answer

When the amount of interest receivable decreases during an accounting period:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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