Question 71 1. It Is Obvious That an Error Occurred in the Preparation And/Or Posting Of

Question 71 1. It is obvious that an error occurred in the preparation and/or posting of closing entries if: Answer all revenue and expense accounts have zero balances. the owner's capital account is debited for the amount of the net loss for the period. the income summary account is debited for the amount of net income for the period. all balance sheet accounts have zero balances. only permanent accounts appear on the post-closing trial balance. 1 points Question 72 1. Reversing entries: Answer Are optional. Are mandatory. Correct errors in journal entries. Are required by GAAP. Are prepared on the worksheet. 1 points Question 73 1. A trial balance prepared after the closing entries have been journalized and posted is the: Answer Unadjusted trial balance. Post-closing trial balance. General ledger. Adjusted trial balance. Work sheet. 1 points Question 74 1. In the process of completing a work sheet, you determine that the Income Statement debit column totals $83,000, while the Income Statement credit column totals $65,000. To enter net income (or net loss) for the period into the work sheet would require an entry to Answer the Adjustments debit column and the Adjustments credit column. the Unadjusted Trial Balance debit column and the Adjustments credit column. it is not practical to enter Net Income (or Net Loss) on the work sheet. the Balance Sheet & Statement of Owner's Equity debit column and the Income Statement credit column. the Income Statement debit column and the Balance Sheet & Statement of Owner's Equity credit column. 1 points Question 75 1. Assets, liabilities, and equity accounts are not closed; these accounts are called: Answer Nominal accounts. Temporary accounts. Permanent accounts. Contra accounts. Accrued accounts. 1 points Question 76 1. A written promise to pay a definite sum of money on a specified future date is a(n): Answer Unearned revenue. Prepaid expense. Credit account. Note payable. Account receivable. 1 points Question 77 1. If the Debit and Credit column totals of a trial balance are equal, then: Answer All transactions have been recorded correctly. All entries from the journal have been posted to the ledger correctly. All ledger account balances are correct. The total debit entries and total credit entries are equal. The balance sheet would be correct. 1 points Question 78 1. On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Bob withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was: Answer A decrease of $9,500. An increase of $9,500. An increase of $30,500. A decrease of $30,500 Impossible to determine from the information provided. 1 points Question 79 1. At the beginning of the current year, Taunton Company's total assets were $248,000 and its total liabilities were $175,000. During the year, the company reported total revenues of $93,000, total expenses of $76,000 and owner withdrawals of $5,000. There were no other changes in owner's capital during the year and total assets at the end of the year were $260,000. Taunton Company's debt ratio at the end of the current year is: Answer 70.6%. 67.3%. 32.7%. 48.6%. Cannot be determined from the information provided. 1 points Question 80 1. Which of the following statements describing the debt ratio is false? Answer It is of use to both internal and external users of accounting information. A relatively high ratio is always desirable. The dividing line for a high and low ratio varies from industry to industry. Many factors such as a company's age, stability, profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio. The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt. 1 points Question 81 1. Which of the following groups of accounts are not balance sheet accounts? Answer Assets. Liabilities. Revenues. Equity accounts. All of these are balance sheet accounts. 1 points