4 Interactive Quiz B

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Interactive Quiz B http://highered.mcgraw-hill.com/sites/0072996536/student_view0/chapter4/interactive_quiz_b.html[6/22/2010 6:37:54 PM] Interactive Quiz B (See related pages) Results Reporter Out of 36 questions, you answered 17 correctly with a final grade of 47% 17 correct (47%) 19 incorrect (53%) 0 unanswered (0%) Your Results: The correct answer for each question is indicated by a . 1 INCORRECT The worksheet is a formal financial statement which is included in the company's published annual report. A) True B) False Feedback: The worksheet is an informal accounting document that is not released to the public as part of the company's annual financial statements. 2 CORRECT Every account that is contained in the company's chart of accounts will appear in the worksheet even if the account has a zero balance. A) True B) False Feedback: Every account that is in the general ledger that has a debit or credit balance other than zero will appear on the worksheet. 3 CORRECT If an adjusting entry needs to be entered onto the worksheet but the account name is not on the worksheet, the common practice is to omit the adjustment. A) True B) False Feedback: The common practice is to write in the needed account name on the first blank line of the worksheet and enter the adjusting entry into the Adjustments column where appropriate. 4 CORRECT Assume that all of the adjustments have been entered on the worksheet. When the total debits in the adjustments column are added to the total debits in the unadjusted trial balance column, the result will always be equal to the total debits in the adjusted trial balance column. A) True B) False Feedback: This result is one possible result but there are other results that may also occur. 5 INCORRECT A company prepares monthly financial statements and uses a worksheet to assist in the preparation of the monthly statements. On average the company has ten adjusting entries per month. The company does not journalize or post any adjustments except for those arising in the last month of the year. This procedure has allowed the company to avoid the journalization and the posting of 110 journal entries. A) True B) False Feedback: One of the benefits of using a worksheet is that it allows a company to prepare financial statements while not having to journalize and post adjusting entries for the interim time periods. The company has saved itself the journalization and posting of 110 entries. 6 CORRECT Since the Income Summary account is an account, it will be found on one of the company's annual financial statements. A) True B) False Feedback: The Income Summary account is an account but it is only used to aid in the closing process. Its end-of-the-period balance is always zero so it would not appear on a financial statement anyway. 7 CORRECT
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4 Interactive Quiz B - Interactive Quiz B Home > Chapter...

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