# ACG 2021 Lecture Notes - Lecture 4: Accounting Information System, Regional Policy Of The European Union, Intangible Asset

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CHAPTER 4

COMPLETION OF THE ACCOUNTING CYCLE

SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMY

Item

SO

BT

Item

SO

BT

Item

SO

BT

Item

SO

BT

Item

SO

BT

True-False Statements

1.

1

K

9.

2

K

17.

4

K

25.

6

C

s33.

2

2.

1

K

10.

2

K

18.

4

C

26.

6

K

s34.

3

3.

1

C

11.

2

K

19.

5

C

27.

6

K

s35.

6

4.

1

C

12.

2

K

20.

5

K

28.

6

K

s36.

6

5.

1

K

13.

2

K

21.

5

C

29.

6

K

s37.

6

6.

1

K

14.

2

K

22.

6

K

a30.

7

K

7.

1

C

15.

3

C

23.

6

C

s31.

1

8.

2

K

16.

3

K

24.

6

C

s32.

2

Multiple Choice Questions

38.

1

K

54.

2

K

70.

2

C

86.

5

AN

102.

6

K

39.

1

C

55.

2

K

71.

3

K

87.

5

K

103.

6

K

40.

1

C

56.

2

K

72.

3

K

88.

5

C

104.

6

K

41.

1

K

57.

2

K

73.

3

K

89.

5

K

105.

6

C

42.

1

C

58.

2

K

74.

3

K

90.

5

AN

a106.

7

K

43.

1

K

59.

2

K

75.

3

K

91.

5

AN

a107.

7

K

44.

1

K

60.

2

K

76.

3

C

92.

5

AN

s108.

1

45.

1

K

61.

2

K

77.

3

C

93.

6

C

s109.

2

46.

1

K

62.

2

K

78.

3

C

94.

6

K

s110.

2

47.

1

K

63.

2

K

79.

4

K

95.

6

K

s111.

3

48.

1

K

64.

2

C

80.

4

K

96.

6

C

s112.

..

4

49.

1

C

65.

2

K

81.

4

K

97.

6

C

s113.

5

50.

1

K

66.

2

K

82.

4

K

98.

6

K

s114.

6

51.

1

C

67.

2

C

83.

4

K

99.

6

K

52.

1

AP

68.

2

K

84.

4

K

100.

6

K

53.

1

C

69.

2

K

85.

4

K

101.

6

K

Exercises

115.

1

C

119.

2

AP

123.

3

AN

127.

6

AP

a131.

7

AN

116.

1

AN

120.

2

AP

124.

5

AN

128.

6

AP

117.

1

AN

121.

2

AP

125.

5

AN

a129.

7

AN

118.

2

AP

122.

2

AP

126.

5

AN

a130.

7

AN

Completion Statements

132.

1

K

135.

2

K

138.

4

K

141.

6

K

133.

1

K

136.

2

K

139.

6

K

142.

6

K

134.

2

K

137.

3

K

140.

6

K

143.

6

K

a This topic is dealt with in an Appendix to the chapter; s Study Guide question.

Test Bank for Accounting Principles, Sixth Edition

13- 2

SUMMARY OF STUDY OBJECTIVES BY QUESTION TYPE

Item

Type

Item

Type

Item

Type

Item

Type

Item

Type

Item

Type

Item

Type

Study Objective 1

1.

TF

6.

TF

40.

MC

45.

MC

50.

MC

115.

Ex

2.

TF

7.

TF

41.

MC

46.

MC

51.

MC

116.

Ex

3.

TF

s31.

TF

42.

MC

47.

MC

52.

MC

117.

Ex

4.

TF

38.

MC

43.

MC

48.

MC

53.

MC

132.

C

5.

TF

39.

MC

44.

MC

49.

MC

s108.

MC

133.

C

Study Objective 2

8.

TF

14.

TF

57.

MC

63.

MC

69.

MC

120.

Ex

9.

TF

s32.

TF

58.

MC

64.

MC

70.

MC

121.

Ex

10.

TF

s33.

TF

59.

MC

65.

MC

s109.

MC

122.

Ex

11.

TF

54.

MC

60.

MC

66.

MC

s110.

MC

134.

C

12.

TF

55.

MC

61.

MC

67.

MC

118.

Ex

135.

C

13.

TF

56.

MC

62.

MC

68.

MC

119.

Ex

136.

C

Study Objective 3

15.

TF

s34.

TF

72.

MC

74.

MC

76.

MC

78.

MC

123.

Ex

16.

TF

71.

MC

73.

MC

75.

MC

77.

MC

s111.

MC

137.

C

Study Objective 4

17.

TF

79.

MC

81.

MC

83.

MC

85.

MC

138.

C

18.

TF

80.

MC

82.

MC

84.

MC

s112.

MC

Study Objective 5

19.

TF

21.

TF

87.

MC

89.

MC

91.

MC

s113.

MC

125.

Ex

20.

TF

86.

MC

88.

MC

90.

MC

92.

MC

124.

Ex

126.

Ex

Study Objective 6

22.

TF

27.

TF

s37.

TF

97.

MC

102.

MC

127.

Ex

142.

C

23.

TF

28.

TF

93.

MC

98.

MC

103.

MC

128.

Ex

143.

C

24.

TF

29.

TF

94.

MC

99.

MC

104.

MC

139.

C

25.

TF

s35.

TF

95.

MC

100.

MC

105.

MC

140.

C

26.

TF

s36.

TF

96.

MC

101.

MC

s114.

MC

141.

C

Study Objective 7

a30.

TF

a106.

MC

a107.

MC

a129.

Ex

a130.

Ex

a131.

Ex

Note: TF = True-False C = Completion

MC = Multiple Choice Ex = Exercise

The chapter also contains one set of ten Matching questions and four Short-Answer Essay

questions.

Accounting For Partnerships

133

CHAPTER STUDY OBJECTIVES

1. Prepare a work sheet. The steps in preparing a work sheet are: (a) prepare a trial balance

on the work sheet, (b) enter the adjustments in the adjustment columns, (c) enter adjusted

balances in the adjusted trial balance columns, (d) extend adjusted trial balance amounts to

appropriate financial statement columns, and (e) total the statement columns, compute net

income (or net loss), and complete the work sheet.

2. Explain the process of closing the books. Closing the books occurs at the end of an

accounting period. The process is to journalize and post closing entries and then rule and

balance all accounts. In closing the books, separate entries are made to close revenues and

expenses to Income Summary, Income Summary to owner's capital, and owner's drawings

to owner's capital. Only temporary accounts are closed.

3. Describe the content and purpose of a post-closing trial balance. A post-closing trial

balance contains the balances in permanent accounts that are carried forward to the next

accounting period. The purpose of this trial balance is to prove the equality of these

balances.

4. State the required steps in the accounting cycle. The required steps in the accounting

cycle are: (a) analyze business transactions, (b) journalize the transactions, (c) post to

ledger accounts, (d) prepare a trial balance, (e) journalize and post adjusting entries, (f)

prepare an adjusted trial balance, (g) prepare financial statements, (h) journalize and post

closing entries, and (i) prepare a post-closing trial balance.

5. Explain the approaches to preparing correcting entries. One approach for determining

the correcting entry is to compare the incorrect entry with the correct entry. After

comparison, a correcting entry is made to correct the accounts. An alternative to a correcting

entry is to reverse the incorrect entry and then prepare the correct entry.

6. Identify the sections of a classified balance sheet. In a classified balance sheet, assets

are classified as current assets; long-term investments; property, plant, and equipment; or

intangibles. Liabilities are classified as either current or long-term. There is also an owner's

equity section, which varies with the form of business organization.

*7. Prepare reversing entries. Reversing entries are the opposite of the adjusting entry made

in the preceding period. They are made at the beginning of a new accounting period to

simplify the recording of later transactions related to the adjusting entry. In most cases, only

accrued adjusting entries are reversed.