121.The ending balance in retained earnings is
a. $53,000
b. $47,000
c. $3,000
d. $50,000
122.Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)?
a.analyze and record transactions, post transactions to the ledger, prepare a trial balance, prepare financialstatements, journalize closing entries, analyze adjustment data and prepare adjusting entries
b.prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements,journalize closing entries and post to the ledger, analyze and record transactions, post transactions to theledger
c.analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustmentdata, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger,and prepare a post-closing trial balance
d.prepare financial statements, journalize closing entries and post to the ledger, analyze and recordtransactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepareadjusting entries
123.In the accounting cycle, the last step is
a.preparing the financial statements
b.journalizing and posting the adjusting entries
c.preparing a postclosing trial balance
d.journalizing and posting the closing entries
124.Of the following steps of the accounting cycle, which step should be completed first?
a.Closing entries are journalized and posted to the ledger.
b.Transactions are posted to the ledger.
c.Adjusting entries are journalized and posted to the ledger.
d.Financial statements are prepared.
125.Of the following steps of the accounting cycle, which step should be completed last?
a.An adjusted trial balance is prepared.
b.Transactions are posted to the ledger.
c.An unadjusted trial balance is prepared.
d.Adjusting entries are journalized and posted to the ledger.
126.The accounting cycle requires three trial balances be done. In what order should they be prepared?
a.post-closing, unadjusted, adjusted
b.unadjusted, post-closing, adjusted
c.unadjusted, adjusted, post-closing
d.post-closing, adjusted, unadjusted
127.During the end-of-period processing, which of the following best describes the logical order of steps?
a.preparation of adjustments, adjusted trial balance, financial statements
b.preparation of income statement, adjusted trial balance, balance sheet
c.preparation of adjusted trial balance, cross-referencing, journalizing
d.preparation of adjustments, adjusted trial balance, posting
128.A fiscal year for a business
a.ordinarily begins on the first day of a month and ends on the last day of the following twelfth month
b.is determined by the federal government
c.always begins on January 1 and ends on December 31 of the same year
d.should end at the height of the business's annual operating cycle
129.The natural business year is a
a.fiscal year that ends when business activities are at their lowest point
b.calendar year that ends when business activities are at their lowest point
c.fiscal year that ends when business activities are at their highest point
d.calendar year that ends when business activities are at their highest point
130.The end-of-period spreadsheet
a.is an integral part of the accounting cycle
b.eliminates the need to rewrite the financial statements
c.is a working paper that is required
d.is used to summarize account balances and adjustments for the financial statements