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Accounting Changes & Errors Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What account is created just to be used for the closing entries?

Question 2 2. Which accounts have balances that are zeroed out at the end of each accounting period?

Question 3 3. Which temporary account is the last one to be closed, that deals directly with the return that investors receive on their investments?

Question 4 4. Sarah is an accountant for ABC Water Company. She is working on her closing entries for the company. In order to do her closing entries, she needs to see all the company's accounts and the balances of those accounts. What does Sarah need?

Question 5 5. What does REID stand for in closing entries process?

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Question 6 6. A report that lists all the accounts a company has and their balances after adjustments have been made is called the _____.

Question 7 7. XYZ Logging pays an up front annual maintenance cost of $20,000 for all of their logging machines. If their accountant, Bob, is creating an adjusted trial balance at the end of the first quarter, what should be the resulting balance in this maintenance account?

Question 8 8. Some company accounts need to be _____ in order to meet the requirements of the accrual basis accounting method.

Question 9 9. Before you can complete the adjusted trial balance, you first have to create the _____.

Question 10 10. The _____ basis of accounting recognized revenue when it is earned and expenses when they are incurred, regardless of when cash is received or paid out.

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Question 11 11. What do the notes to the financial statements do?

Question 12 12. What is a liability that has not yet occurred but the conditions are favorable that it will occur called?

Question 13 13. What are events that occurred after the date on the balance sheet but before the financial statements have been issued called?

Question 14 14. The Widget Company is changing the way it does its accounting. They used to report revenue only when the money was received, but now they will report it once an order is made. How will this show in the notes?

Question 15 15. What are the guidelines that dictate how items are reported in the body of the financial statements and what is disclosed in the notes to the financial statements?

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Question 16 16. Susie is an accountant for XYZ Tech Firm, and she is preparing the post closing trial balance. She goes to one of her co-workers to request the revenue and expense account balances to include in her report. What will her co-worker tell her?

Question 17 17. _____ accounts are those accounts that are not always a part of a company's chart of accounts.

Question 18 18. _____accounts are accounts that once opened will always be a part of a company's chart of accounts.

Question 19 19. When are the balances in temporary accounts zeroed out?

Question 20 20. The report that lists all the accounts of a company and their balances after all adjustments and closing entries have been made is called the _____.

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Question 21 21. XYZ Business recently needed to purchase a new piece of accounting software that was a sizable expense. Though they technically purchased the software in the current quarter accounting period, they won't actually be paying it until the next quarter's accounting period. What is this called?

Question 22 22. Money that a business has been paid in advance for a service that will be provided later is called _____.

Question 23 23. Money earned in one accounting period but not received until another is called _____.

Question 24 24. Account adjustments are a result of _____.

Question 25 25. Entries made in the general journal at the end of an accounting period to bring account balances up to date are called _____.

Accounting Changes & Errors Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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