Accounting Cycle quiz

On Feb 6, 2026

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Accounting Cycle

10 questions in 10 minutes

Pass Score 70%

1 / 10

When the Company purchased supplies worth $100, it incorrectly recorded a credit to Supplies for $1,000 and a debit to Cash for $1,000. Before correcting this error :

Cash is understated and Supplies is overstated

Cash is understated and Supplies is understated

Cash is overstated and Supplies is overstated

Cash is overstated and Supplies is understated

2 / 10

Which types of accounts will appear in the post-closing trial balance?

None of the above

Permanent (real) accounts

Accounts shown in the income statement columns of a worksheet

Temporary (nominal) accounts

3 / 10

All of the following are required steps in the accounting cycle except :

preparing a worksheet

journalizing the transactions

journalizing and posting closing entries

preparing fnancial statements

4 / 10

In a classif ed balance sheet, assets are usually classifed using the following categories :

current assets; long-term assets; property, plant, and equipment; and intangible assets

current assets; long-term investments; property, plant, and equipment; and intangible assets

current assets; long-term investments; property, plant, and equipment; and tangible assets

current assets; long-term investments; tangible assets; and intangible assets

5 / 10

The correct order of presentation in a classifed balance sheet for the following current assets is :

inventory, cash, accounts receivable, prepaid insurance

cash, accounts receivable, inventory, prepaid insurance

cash, inventory, accounts receivable, prepaid insurance

accounts receivable, cash, prepaid insurance, inventory

6 / 10

Which of the following statements is incorrect concerning the worksheet ?

The worksheet is essentially a working tool of the accountant

The worksheet cannot be used as a basis for posting to ledger accounts

The worksheet is distributed to management and other interested parties

Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries

7 / 10

Current assets are listed :

by importance

alphabetically

by longevity

by expected conversion to cash

8 / 10

Cash of $100 received at the time the service was performed was journalized and posted as a debit to Cash $100 and a credit to Accounts Receivable $100. Assuming the incorrect entry is not reversed, the correcting entry is :

debit Service Revenue $100 and credit Accounts Receivable $100

debit Cash $100 and credit Service Revenue $100

debit Accounts Receivable $100 and credit Service Revenue $100

debit Accounts Receivable $100 and credit Cash $100

9 / 10

An account that will have a zero balance after closing entries have been journalized and posted is :

Service Revenue

Accumulated Depreciation—Equipment

Supplies

Prepaid Insurance

10 / 10

When a net loss has occurred, Income Summary is :

credited and Owner’s Capital is debited

debited and Owner’s Capital is credited

debited and Owner’s Drawings is credited

credited and Owner’s Drawings is debited

Your score is

Question topics

Classified balance sheet

Prepare a worksheet

Preparing adjusting entries

Preparing closing entries