Test Bank for Accounting Principles, Eleventh Edition

4 – 2
Test Bank for Accounting Principles, Eleventh Edition
4 – 3
Completing the Accounting Cycle

CHAPTER 4
COMPLETING THE ACCOUNTING CYCLE
Summary of Questions by Learning Objectives and Bloom’s Taxonomy

Item

LO

BT

Item

LO

BT

Item

LO

BT

Item

LO

BT

Item

LO

BT

True-False Statements

1.
1
K
9.
2
K
17.
4
K
25.
6
C
sg33.
2
K

2.
1
K
10.
2
K
18.
4
C
26.
6
K
sg34.
3
K

3.
1
C
11.
2
K
19.
5
C
27.
6
K
sg35.
6
C

4.
1
C
12.
2
K
20.
5
K
28.
6
K
sg36.
6
K

5.
1
K
13.
2
K
21.
5
C
29.
6
K
sg37.
6
K

6.
1
K
14.
2
K
22.
6
K
a30.
7
K

7.
1
C
15.
3
C
23.
6
C
sg31.
1
K

8.
2
K
16.
3
K
24.
6
C
sg32.
2
K

Multiple Choice Questions

38.
1
K
66.
2
K
94.
3
C
122.
6
AN
150.
6
AP

39.
1
K
67.
2
K
95.
3
C
123.
6
AN
151.
6
AP

40.
1
K
68.
2
C
96.
3
C
124.
6
K
a152.
7
K

41.
1
C
69.
2
K
97.
4
K
125.
6
K
a153.
7
K

42.
1
C
70.
2
K
98.
4
K
126.
6
C
sg154.
1
C

43.
1
K
71.
2
C
99.
4
K
127.
6
K
sg155.
2
K

44.
1
C
72.
2
K
100.
4
K
128.
6
K
sg156.
2
K

45.
1
K
73.
2
K
101.
4
K
129.
6
C
sg157.
3
K

46.
1
K
74.
2
C
102.
4
K
130.
6
C
st158.
4
K

47.
1
K
75.
2
C
103.
4
K
131.
6
K
sg159.
4
K

48.
1
K
76.
2
C
104.
4
K
132.
6
K
st160.
5
K

49.
1
K
77.
2
C
105.
4
K
133.
6
K
sg161.
5
AN

50.
1
K
78.
2
C
106.
5
K
134.
6
K
st162.
6
K

51.
1
C
79.
2
AN
107.
5
AN
135.
6
K
sg163.
6
K

52.
1
K
80.
2
C
108.
5
K
136.
6
K
st,a164.
7
K

53.
1
C
81.
2
C
109.
5
C
137.
6
K
165.
8
K

54.
1
AP
82.
2
C
110.
5
K
138.
6
C
166.
8
K

55.
1
C
83.
2
C
111.
5
AN
139.
1
AN
167.
8
K

56.
2
K
84.
2
AN
112.
5
AN
140.
6
AN
168.
8
K

57.
2
K
85.
2
C
113.
5
AN
141.
6
AN
169.
8
K

58.
2
K
86.
2
C
114.
5
AN
142.
6
AN
170.
8
K

59.
2
K
87.
3
K
115.
5
AN
143.
6
AN
171.
8
K

60.
2
K
88.
3
C
116.
6
AN
144.
6
AN
172.
8
K

61.
2
K
89.
3
K
117.
6
AN
145.
6
AN
173.
8
K

62.
2
K
90.
3
K
118.
6
AN
146.
6
K
174.
8
K

63.
2
K
91.
3
K
119.
6
AN
147.
6
K
175.
8
K

64.
2
K
92.
3
K
120.
6
AN
148.
6
K

65.
2
K
93.
3
K
121.
6
AN
149.
6
K

sg This question also appears in the Study Guide.
st This question also appears in a self-test at the student companion website.
a This question covers a topic in an appendix to the chapter.
Summary of Questions by Learning Objectives and Bloom’s Taxonomy

Brief Exercises

176.
2
AN
179.
2
K
182.
5
AN
185.
6
AP

177.
2
AN
180.
3
K
183.
6
AN
186.
6
K

178.
2
AN
181.
5
AN
184.
6
AP
a187.
7
AP

Exercises

188.
1
C
194.
1,6
AP
200.
2
AP
206.
5
AN
212.
6
AP

189.
1
C
194.
2
AN
201.
3
C
207.
5
AN
a213.
7
AN

190.
1
AN
196.
2
AP
202.
3
AN
208.
5
AN
a214.
7
AN

191.
1
AN
197.
2
AP
203.
4
C
209.
6
AP
a215.
7
AN

192.
1
AN
198.
2
AP
204.
5
AN
210.
6
AN

193.
1
AN
199.
2
AP
205.
5
AN
211.
6
AP

Completion Statements

216.
1
K
219..
2
K
222.
4
K
225.
6
K

217.
1
K
220.
2
K
223.
6
K
226.
6
K

218.
2
K
221.
3
K
224.
6
K
227.
6
K

Matching

228.
1-7
K

Short-Answer Essay

229.
1
K
231.
6
K
a233.
7
K
225.
5
K

230.
2
K
232.
6
K
234.
5
K

SUMMARY OF Learning OBJECTIVES BY QUESTION TYPE

Item

Type

Item

Type

Item

Type

Item

Type

Item

Type

Item

Type

Item

Type

Learning Objective 1

1.
TF
7.
TF
42.
MC
48.
MC
54.
MC
190.
Ex
217.
C

2.
TF
31.
TF
43.
MC
49.
MC
55.
MC
191.
Ex
228.
MA

3.
TF
38.
MC
44.
MC
50.
MC
139.
MC
192.
Ex
229.
SA

4.
TF
39.
MC
45.
MC
51.
MC
154.
MC
193.
Ex

5.
TF
40.
MC
46.
MC
52.
MC
188.
Ex
194.
Ex

6.
TF
41.
MC
47.
MC
53.
MC
189.
Ex
216.
C

Learning Objective 2

8.
TF
33.
TF
63.
MC
71.
MC
79.
MC
155.
MC
197.
Ex

9.
TF
56.
MC
64.
MC
72.
MC
80.
MC
156.
MC
198.
Ex

10.
TF
57.
MC
65.
MC
73.
MC
81.
MC
176.
BE
199.
Ex

11.
TF
58.
MC
66.
MC
74.
MC
82.
MC
177.
BE
200.
Ex

12.
TF
59.
MC
67.
MC
75.
MC
83.
MC
178.
BE
218.
C

13.
TF
60.
MC
68.
MC
76.
MC
84.
MC
179.
BE
219/220.
C

14.
TF
61.
MC
69.
MC
77.
MC
85.
MC
195.
Ex
228.
MA

32.
TF
62.
MC
70.
MC
78.
MC
86.
MC
196.
Ex
230.
SA

Learning Objective 3

15.
TF
87.
MC
90.
MC
93.
MC
96.
MC
201.
Ex
228.
MA

16.
TF
88.
MC
91.
MC
94.
MC
157.
MC
202.
Ex

34.
TF
89.
MC
92.
MC
95.
MC
180.
BE
221.
C

SUMMARY OF Learning OBJECTIVES BY QUESTION TYPE

Learning Objective 4

17.
TF
98.
MC
101.
MC
104.
MC
159.
MC
228.
MA

18.
TF
99.
MC
102.
MC
105.
MC
203.
Ex

97.
MC
100.
MC
103.
MC
158.
MC
222.
C

Learning Objective 5

19.
TF
107.
MC
111.
MC
115.
MC
182.
BE
207.
Ex
235.
SA

20.
TF
108.
MC
112.
MC
160.
MC
204.
Ex
208.
Ex

21.
TF
109.
MC
113.
MC
161.
MC
205.
Ex
228.
MA

106.
MC
110.
MC
114.
MC
181.
BE
206.
Ex
234.
SA

Learning Objective 6

22.
TF
37.
TF
125.
MC
135.
MC
145.
MC
184.
BE
225.
C

23.
TF
116.
MC
126.
MC
136.
MC
146.
MC
185.
BE
226.
C

24.
TF
117.
MC
127.
MC
137.
MC
147.
MC
186.
BE
227.
C

25.
TF
118.
MC
128.
MC
138.
MC
148.
MC
183.
Ex
228.
MA

26.
TF
119.
MC
129.
MC

149.
MC
209.
Ex
231.
SA

27.
TF
120.
MC
130.
MC
140.
MC
150.
MC
210.
Ex
232.
SA

28.
TF
121.
MC
131.
MC
141.
MC
151.
MC
211.
Ex

29.
TF
122.
MC
132.
MC
142.
MC
162.
MC
212.
Ex

35.
TF
123.
MC
133.
MC
143.
MC
163.
MC
223.
C

36.
TF
124.
MC
134.
MC
144.
MC
183.
BE
224.
C

Learning Objective a7

a30.
TF
a153.
MC
a167.
MC
a213.
Ex
a215.
Ex
228.
MA

a152.
MC
a164.
MC
a187.
BE
a214.
Ex
233.
SA

Learning Objective a8

a165.
MC
a167.
MC
a169.
MC
a171.
MC
a173.
MC
a175.
MC

a166.
MC
a168.
MC
a170.
MC
a172.
MC
a174.
MC

Note: TF = True-False BE = Brief Exercise C = Completion
MC = Multiple Choice Ex = Exercise MA = Matching
SA = Short-Answer Essay
CHAPTER Learning OBJECTIVES
1. Prepare a worksheet. The steps in preparing a worksheet follows. (a) Prepare a trial balance on the worksheet, (b) Enter the adjustments in the adjustments columns, (c) Enter adjusted balances in the adjusted trial balance columns, (d) Extend adjusted trial balance amounts to appropriate financial statement columns, and (e) Total the statement columns, compute net income (or net loss), and complete the worksheet.
2. Explain the process of closing the books. Closing the books occurs at the end of an accounting period. The process is to journalize and post closing entries and then underline and balance all accounts. In closing the books, companies make separate entries to close revenues and expenses to Income Summary, Income Summary to Owner’s Capital, and Owner’s Drawings to Owner’s Capital. Only temporary accounts are closed.
3. Describe the content and purpose of a post-closing trial balance. A post-closing trial balance contains the balances in permanent accounts that are carried forward to the next accounting period. The purpose of this trial balance is to prove the equality of these balances.
4. State the required steps in the accounting cycle. The required steps in the accounting cycle are (1) analyze business transactions, (2) journalize the transactions, (3) post to ledger accounts, (4) prepare a trial balance, (5) journalize and post adjusting entries, (6) prepare an adjusted trial balance, (7) prepare financial statements, (8) journalize and post closing entries, and (9) prepare a post-closing trial balance.
5. Explain the approaches to preparing correcting entries. One way to determine the correcting entry is to compare the incorrect entry with the correct entry. After comparison, the company makes a correcting entry to correct the accounts. An alternative to a correcting entry is to reverse the incorrect entry and then prepare the correct entry.
6. Identify the sections of a classified balance sheet. A classified balance sheet categorizes assets as current assets; long-term investments; property, plant, and equipment; and intangibles. Liabilities are classified as either current or long-term. There is also an owner’s (owners’) equity section, which varies with the form of business organization.
a7. Prepare reversing entries. Reversing entries are the opposite of the adjusting entries made in the preceding period. Some companies choose to make reversing entries at the beginning of a new accounting period to simplify the recording of later transactions related to the adjusting entries. In most cases, only accrued adjusting entries are reversed.
TRUE-FALSE STATEMENTS
1. A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA
2. If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA
3. If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has net income.
Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting
4. It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.
Ans: F, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting
5. The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA
6. The adjusted trial balance columns of a worksheet are obtained by subtracting the adjustment columns from the trial balance columns.
Ans: F, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem LOlving, IMA: FSA
7. The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.
Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA
8. Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA:…

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *