Question 1

Revenues and expenses are closed to the Income Summary account.

Accepted Answer

A) True 
 B)False  True

Question 2

Income Summary is a permanent account.

Accepted Answer

A) True 
 B)False  False

Question 3

The purpose of closing entries is to

Accepted Answer

A)  adjust the accounts in the ledger. 
B)  set nominal account balances to zero to begin the next period. 
C)  set real account balances to zero to begin the next period. 
D)  help in preparing financial statements. 
A)  adjust the accounts in the ledger. 
B)  set nominal account balances to zero to begin the next period. 
C)  set real account balances to zero to begin the next period. 
D)  help in preparing financial statements. B

Question 4

A real account is the same as a permanent account.

Accepted Answer

A) True 
 B)False

Question 5

The Income Summary account can be found on the worksheet.

Accepted Answer

A) True 
 B)False

Question 6

The income statement credit column of the worksheet showed the following revenues: Maintenance Fees $800
Professional Fees 700
The journal entry to close the revenue accounts is

Accepted Answer

A)  $$\begin{array}{l}
\text { Income Summary } \quad 1,500\
\begin{array} { l l } 
\text { Maintenance Fees } & 800 \
\text { Professional Fees } & 700
\end{array}
\end{array}$$ 
B)  Maintenance Fees $\quad 800$
Professional Fees $\quad 700$
Income Summary$\quad 1,500$ 
C)  Capital $\quad 1,500$
income summary $\quad 1,500$ 
D)  $$\begin{array} { l l l } 
\text { Maintenance Fees } & 800 & \
\text { Professional Fees } & 700 & \
\quad \text { Capital } & & 1,500
\end{array}$$ 
A)  $$\begin{array}{l}
\text { Income Summary } \quad 1,500\
\begin{array} { l l } 
\text { Maintenance Fees } & 800 \
\text { Professional Fees } & 700
\end{array}
\end{array}$$ 
B)  Maintenance Fees $\quad 800$
Professional Fees $\quad 700$
Income Summary$\quad 1,500$ 
C)  Capital $\quad 1,500$
income summary $\quad 1,500$ 
D)  $$\begin{array} { l l l } 
\text { Maintenance Fees } & 800 & \
\text { Professional Fees } & 700 & \
\quad \text { Capital } & & 1,500
\end{array}$$

Question 7

Each individual revenue account is debited when closing, and the total of all the revenue accounts is transferred to Income Summary.

Accepted Answer

A) True 
 B)False

Question 8

When the balance in the Income Summary account is a credit, the company has

Accepted Answer

A)  incurred a net loss. 
B)  incurred a net income. 
C)  had more expenses than revenue. 
D)  made an error in their closing entries. 
A)  incurred a net loss. 
B)  incurred a net income. 
C)  had more expenses than revenue. 
D)  made an error in their closing entries.

Question 9

The Income Summary account shows debits of $18,500 and credits of $11,275. This results in a

Accepted Answer

A)  net income of $29,775. 
B)  net loss of $29,775. 
C)  net income of $7,225. 
D)  net loss of $7,225. 
A)  net income of $29,775. 
B)  net loss of $29,775. 
C)  net income of $7,225. 
D)  net loss of $7,225.

Question 10

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

Accepted Answer

A) True 
 B)False

Question 11

The final step in the accounting cycle is

Accepted Answer

A)  preparing the post-closing trial balance. 
B)  preparing the financial statements. 
C)  journalizing the closing entries. 
D)  journalizing the adjusting entries. 
A)  preparing the post-closing trial balance. 
B)  preparing the financial statements. 
C)  journalizing the closing entries. 
D)  journalizing the adjusting entries.

Question 12

The Capital account debited and the withdrawals credited would be the result of

Accepted Answer

A)  closing the Income Summary account-there is a net income. 
B)  closing the withdrawal account. 
C)  closing the Income Summary account-there is a net loss. 
D)  closing the expense accounts. 
A)  closing the Income Summary account-there is a net income. 
B)  closing the withdrawal account. 
C)  closing the Income Summary account-there is a net loss. 
D)  closing the expense accounts.

Question 13

Which of the following is NOT a temporary account?

Accepted Answer

A)  Wages Expense. 
B)  Service Fees. 
C)  Rent Expense. 
D)  Capital. 
A)  Wages Expense. 
B)  Service Fees. 
C)  Rent Expense. 
D)  Capital.

Question 14

From the following items in the income statement columns of the worksheet of Monaghan Company at December 31, prepare the closing entries without explanation, assuming that a $450 withdrawal was made during the period.
$$\begin{array}{l}
\text { Income Statement }\
\begin{array} { l c c } 
\text { Account } & \text { Debit } & \text { Credit } \
\text { Service Revenue } & & 900 \
\text { Wages Expense } & 550 & \
\text { Rent Expense } & 250 & \
\text { Supplies Expense } & 100 & \
\text { Insurance Expense } & \underline { 50 } & \underline {} \
\text {  } & 950 &  900 \
\text { Net Loss } &  & \underline { 50 } \
& \underline { \underline { \$950 } }&\underline { \underline { \$950 } }
\end{array}
\end{array}$$

Accepted Answer

Service Revenue 900
Income Summary 900
I

Question 15

What is the proper sequencing of documents in an accounting cycle?

Accepted Answer

A)  Source documents, journal, ledger, worksheet, financial statements 
B)  Source documents, ledger, journal, worksheet, financial statements 
C)  Worksheet, source documents, journal, financial statements, ledger 
D)  Source documents, worksheet, journal, ledger, financial statements 
A)  Source documents, journal, ledger, worksheet, financial statements 
B)  Source documents, ledger, journal, worksheet, financial statements 
C)  Worksheet, source documents, journal, financial statements, ledger 
D)  Source documents, worksheet, journal, ledger, financial statements

Question 16

The balance in the Rent Expense account on the worksheet was $725. The journal entry to close the Rent Expense account is

Accepted Answer

A)  Rent Expense 725 Prepaid Rent 725 
B)  Rent Expense 725 Income Summary 725 
C)  Rent Expense 725 Capital 725 
D)  Income Summary 725 Rent Expense 725 
A)  Rent Expense 725 Prepaid Rent 725 
B)  Rent Expense 725 Income Summary 725 
C)  Rent Expense 725 Capital 725 
D)  Income Summary 725 Rent Expense 725

Question 17

Which of the following accounts should NOT be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)  Salaries Expense 
B)  Fees Earned 
C)  Utilities Expense 
D)  Withdrawals 
A)  Salaries Expense 
B)  Fees Earned 
C)  Utilities Expense 
D)  Withdrawals

Question 18

From the following accounts, prepare in proper form a post-closing trial balance for Dave's Dog Watching on December 31, 2019. (Note: These balances are before closing.)
$$\begin{array} { l r } 
\text { Dave, Capital } & 7,400 \
\text { Cash } & 2,000 \
\text { Accumulated Depreciation } & 1,500 \
\text { Equipment } & 5,000 \
\text { Accounts Payable } & 900 \
\text { Dave, Withdrawals } & 1,000 \
\text { Wages Expense } & 2,250 \
\text { Supplies Expense } & 775 \
\text { Accounts Receivable } & 3,125 \
\text { Personal Trainer Fees } & 4,350
\end{array}$$

Accepted Answer

Dave's Dog Watching
Post-Closing Trial B

Question 19

Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500.

Accepted Answer

$11,950 [$

Question 20

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Revenues and expenses are closed to the Income Summary account.

Income Summary is a permanent account.

The purpose of closing entries is to

A real account is the same as a permanent account.

The Income Summary account can be found on the worksheet.

The income statement credit column of the worksheet showed the following revenues: Maintenance Fees $800 Professional Fees 700 The journal entry to close the revenue accounts is

Each individual revenue account is debited when closing, and the total of all the revenue accounts is transferred to Income Summary.

When the balance in the Income Summary account is a credit, the company has

The Income Summary account shows debits of $18,500 and credits of $11,275. This results in a

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

The final step in the accounting cycle is

The Capital account debited and the withdrawals credited would be the result of

Which of the following is NOT a temporary account?

What is the proper sequencing of documents in an accounting cycle?

The balance in the Rent Expense account on the worksheet was $725. The journal entry to close the Rent Expense account is

Which of the following accounts should NOT be closed to Income Summary at the end of the fiscal year?

Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500.

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 5: The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Revenues and expenses are closed to the Income Summary account.

Income Summary is a permanent account.

The purpose of closing entries is to

A real account is the same as a permanent account.

The Income Summary account can be found on the worksheet.

The income statement credit column of the worksheet showed the following revenues: Maintenance Fees $800 Professional Fees 700 The journal entry to close the revenue accounts is

Each individual revenue account is debited when closing, and the total of all the revenue accounts is transferred to Income Summary.

When the balance in the Income Summary account is a credit, the company has

The Income Summary account shows debits of $18,500 and credits of $11,275. This results in a

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

The final step in the accounting cycle is

The Capital account debited and the withdrawals credited would be the result of

Which of the following is NOT a temporary account?

What is the proper sequencing of documents in an accounting cycle?

The balance in the Rent Expense account on the worksheet was $725. The journal entry to close the Rent Expense account is

Which of the following accounts should NOT be closed to Income Summary at the end of the fiscal year?

Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500.

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters