Accounting Cycle quiz Financial Accounting Quiz On Mar 17, 2024 Share /10 12345678910 Accounting Cycle 10 questions in 10 minutes Answers at the end of the exam Pass Score 70% The questions change when you repeat the exam enter full-screen mode by pressing the icon located in the top- right comer of the exam 1 / 10 All of the following are required steps in the accounting cycle except : preparing fnancial statements journalizing the transactions journalizing and posting closing entries preparing a worksheet 2 / 10 Current assets are listed : by expected conversion to cash by importance alphabetically by longevity 3 / 10 A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as: a long-term investment land expense property, plant, and equipment an intangible asset 4 / 10 In a classif ed balance sheet, assets are usually classifed using the following categories : current assets; long-term investments; property, plant, and equipment; and tangible assets current assets; long-term investments; tangible assets; and intangible assets current assets; long-term investments; property, plant, and equipment; and intangible assets current assets; long-term assets; property, plant, and equipment; and intangible assets 5 / 10 When a net loss has occurred, Income Summary is : credited and Owner’s Capital is debited debited and Owner’s Drawings is credited debited and Owner’s Capital is credited credited and Owner’s Drawings is debited 6 / 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 overstated and Supplies is understated Cash is overstated and Supplies is overstated Cash is understated and Supplies is understated 7 / 10 An account that will have a zero balance after closing entries have been journalized and posted is : Accumulated Depreciation—Equipment Service Revenue Supplies Prepaid Insurance 8 / 10 Which of the following statements is incorrect concerning the worksheet ? 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 The worksheet is essentially a working tool of the accountant 9 / 10 In a worksheet, net income is entered in the following columns : income statement (Cr) and balance sheet (Cr) income statement (Dr) and balance sheet (Dr) income statement (Cr) and balance sheet (Dr) income statement (Dr) and balance sheet (Cr) 10 / 10 The correct order of presentation in a classifed balance sheet for the following current assets is : accounts receivable, cash, prepaid insurance, inventory cash, accounts receivable, inventory, prepaid insurance inventory, cash, accounts receivable, prepaid insurance cash, inventory, accounts receivable, prepaid insurance Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback Question topics Classified balance sheet Prepare a worksheet Preparing adjusting entries Preparing closing entries accountingaccounting examaccounting exam financial