Professional Documents
Culture Documents
Poa Reviewer
Poa Reviewer
Section: ________________________________
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
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b. Wages Expenses
c. Rent Revenue
d. Service Revenue
____ 12. An indication that the work sheet columns are in balance and the work sheet is completed is:
a. the word "Total" is written at the bottom of each pair of columns
b. each pair of columns is double underlined
c. each pair of columns has the totals circled
d. the final figures are written in ink
____ 13. After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of
the Debit and Credit columns are P39,750 and P21,750, respectively. What is the amount of net income or net
loss for the period?
a. P18,000 net income
b. P18,000 net loss
c. P39,750 net income
d. P21,750 net income
____ 14. After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of
the Debit and Credit columns are P30,750 and P69,750, respectively. What is the amount of net income or net
loss for the period?
a. P39,000 net income
b. P39,000 net loss
c. P30,750 net income
d. P69,750 net income
____ 15. After all of the account balances have been extended to the Income Statement columns of the work sheet, the
totals of the debit and credit columns are P89,900 and P67,600, respectively. What is the amount of the net
income or net loss for the period?
a. P22,300 net income
b. P22,300 net loss
c. P89,900 net income
d. P67,600 net loss
____ 16. After all of the account balances have been extended to the Income Statement columns of the work sheet, the
totals of the debit and credit columns are P92,300 and P67,600, respectively. What is the amount of the net
income or net loss for the period?
a. P24,700 net income
b. P24,700 net loss
c. P92,300 net income
d. P92,300 net loss
____ 17. When preparing the Retained Earnings Statement, the beginning capital balance can always be found:
a. in the Income Statement columns of the work sheet
b. in the statement of cash flows
c. in the general ledger
d. in the general journal
____ 18. Unearned Fees appears on the:
a. balance sheet
b. Retained Earnings Statement
c. income statement
d. statement of cash flows
____ 19. Accumulated Depreciation appears on the:
a. balance sheet
b. Retained Earnings Statement
c. income statement
d. statement of cash flows
____ 20. Salaries Payable appears on the:
a. balance sheet
b. Retained Earnings Statement
c. income statement
d. statement of cash flows
____ 21. Depreciation Expense appears on the:
a. balance sheet
b. Retained Earnings Statement
c. income statement
d. statement of cash flows
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____ 22. Long-term Liabilities appears on the:
a. balance sheet
b. Retained Earnings Statement
c. income statement
d. statement of cash flows
____ 23. Accounts Receivable appears on the:
a. balance sheet
b. Retained Earnings Statement
c. income statement
d. statement of cash flows
____ 24. Accumulated Depreciation appears on the:
a. balance sheet in the current assets section
b. balance sheet in the fixed assets section
c. balance sheet in the long-term liabilities section
d. income statement as an operating expense
____ 25. Notes Receivable due in 350 days appears on the:
a. balance sheet in the current assets section
b. balance sheet in the fixed assets section
c. balance sheet in the current liabilities section
d. income statement as an expense
____ 26. Unearned Fees appears on the:
a. balance sheet in the current assets section
b. balance sheet as a current liability
c. balance sheet in the Stockholders' equity section
d. income statement as revenue
____ 27. Which one of the fixed asset accounts listed below will not have a related contra asset account?
a. Office Equipment
b. Land
c. Delivery Equipment
d. Building
____ 28. The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a:
a. fixed asset
b. current asset
c. contra asset
d. current liability
____ 29. Prepaid insurance is reported on the balance sheet as a:
a. current asset
b. fixed asset
c. current liability
d. long-term liability
____ 30. At the end of an accounting year, in what statement would a balance in the prepaid insurance account appear?
a. balance sheet
b. income statement
c. statement of cash flows
d. Retained Earnings Statement
____ 31. Which of the following is reported on the Retained Earnings Statement for the current year?
a. Accumulated depreciation
b. Stockholders' additional investment made during the current period
c. Rent expense
d. Wages payable
____ 32. Adjusting entries are dated in the journal as of:
a. the date they are actually journalized.
b. the last day of the accounting period.
c. the first day of the accounting period.D. the middle of the accounting period.
____ 33. Adjusting entries:
a. need not be journalized since they appear on the work sheet and the ledger accounts need
not be adjusted.
b. need not be posted if the financial statements are prepared from the work sheet
c. are not needed if reversing entries are prepared
d. must be journalized and posted
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____ 34. Closing entries:
a. need not be journalized if reversing entries are prepared
b. need not be posted if the financial statements are prepared from the work sheet
c. are not needed if adjusting entries are prepared
d. must be journalized and posted
____ 35. Closing entries are dated in the journal as of:
a. the date they are actually journalized, although they are generally prepared after the end of
the accounting period
b. the last day of the accounting period, although they are actually journalized after the end
of the accounting period
c. the first day of the accounting period, although they are actually journalized after the end
of the accounting period
d. the first day of the subsequent accounting period
____ 36. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
a. Supplies Expense
b. Accumulated Depreciation
c. Prepaid Expenses
d. Unearned revenues
____ 37. Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?
a. Salaries Expense
b. Fees Earned
c. Unearned Rent
d. Depreciation Expense
____ 38. Which of the following accounts will be closed to Retained Earnings at the end of the fiscal year?
a. Rent Expense
b. Fees Earned
c. Income Summary
d. Depreciation Expense
____ 39. Which of the following accounts ordinarily appears in the post-closing trial balance?
a. Dividends
b. Supplies Expense
c. Fees Earned
d. Unearned Rent
____ 40. The entry to close the appropriate insurance account at the end of the accounting period is debit:
a. Income Summary; credit Prepaid Insurance
b. Prepaid Insurance; credit Income Summary
c. Insurance Expense; credit Income Summary
d. Income Summary; credit Insurance Expense
____ 41. Which of the following accounts appears on a post-closing trial balance?
a. Insurance Expense
b. Prepaid Insurance
c. Dividends
d. Fees Earned
____ 42. Which of the following accounts appears on a post-closing trial balance?
a. Insurance Expense
b. Fees Earned
c. Dividends
d. Unearned Fees
____ 43. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:
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d. P11,000
____ 44. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:
TEST II – PROBLEM
1. List the errors in the following trial balance. All accounts have normal balances.
Cash 19,475
Accounts Receivable ?
Supplies 1,000
Equipment 15,000
Prepaid Insurance 500
Accounts Payable 2,500
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Capital Stock 17,000
Dividends 1,000
Fees Earned 49,600
Salary Expense 14,500
Rent Expense 9,000
Utilities Expense 1,400
Supplies Expense 3,900
Miscellaneous Expense 250
55,000 81,575
(A) What would be the new balance of the trial balance after errors are corrected? Accounts receivable?
2. After all adjustments have been made, but before the accounts have been closed, the following balances were
taken from the ledger:
Required:
Prepare the reversing entries. (Indicate “no reversing entry” if not applicable.)