Question 1

Closing entries are prepared

Accepted Answer

A)  to clear all temporary accounts to zero. 
B)  to update the Capital balance. 
C)  at the end of the accounting period. 
D)  All of the above are correct. 
A)  to clear all temporary accounts to zero. 
B)  to update the Capital balance. 
C)  at the end of the accounting period. 
D)  All of the above are correct.

Question 2

M. Smuts showed a net income of $5,250. The entry to close the Income Summary account would include a

Accepted Answer

A)  debit to M. Smuts Capital, $5,250. 
B)  credit to M. Smuts Capital, $5,250. 
C)  debit to Income Summary, $5,250. 
D)  Both B and C are correct. 
A)  debit to M. Smuts Capital, $5,250. 
B)  credit to M. Smuts Capital, $5,250. 
C)  debit to Income Summary, $5,250. 
D)  Both B and C are correct.

Question 3

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

Accepted Answer

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

Question 4

An account in which the balance is not carried over from one accounting period to the next is called a

Accepted Answer

A)  permanent account. 
B)  real account. 
C)  temporary account. 
D)  zero account. 
A)  permanent account. 
B)  real account. 
C)  temporary account. 
D)  zero account.

Question 5

A summary of selected ledger accounts appear below for F. Yanko for the current calendar year. $$\begin{array}{l}
\text { F. Yanko, Capital }\
\begin{array} { l | l r } 
\hline 12 / 316,500 & 1 / 1 & 27,000 \
& 12 / 31 & 4,250
\end{array}
\end{array}$$ $$\begin{array}{l}
\text { F. Yanko, Withdrawals }\
\begin{array} { l c | l l } 
\hline 3 / 31 & 2,000 & & \
10 / 31 & 3,00 & 12 / 31 & 6,500 \
12 / 22 & 1,500 & &
\end{array}
\end{array}$$ $$\begin{array}{l}
\text { Income Summary }\
\begin{array} { l l | l l } 
\hline 12 / 31 & 12,750 & 12 / 31 & 17,000 \
12 / 31 & 4,250 & &
\end{array}
\end{array}$$ Answer the following questions.
1. What was the total amount of withdrawals?
2. What was the net income?
3. What was the total revenue?
4. What were the total expenses?

Accepted Answer

1. $6,500

Question 6

The Withdrawals account is closed to Income Summary.

Accepted Answer

A) True 
 B)False

Question 7

What are the major goals of the closing process?

Accepted Answer

Closing is a mechanical process that aid

Question 8

Closing entries will affect

Accepted Answer

A)  total Assets. 
B)  Cash. 
C)  Owner's Capital. 
D)  total Liabilities. 
A)  total Assets. 
B)  Cash. 
C)  Owner's Capital. 
D)  total Liabilities.

Question 9

All closing entries must be posted before preparing the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 10

The post-closing trial balance contains the true ending figure for Capital.

Accepted Answer

A) True 
 B)False

Question 11

The beginning capital balance is $4,350, there are no additional investments but the owner did withdraw $500 during the accounting period. The period's revenue is $5,000 and expenses total $6,500. What is the ending capital balance (after closing entries)?

Accepted Answer

A)  $5,350 
B)  $2,850 
C)  $5,850 
D)  $2,350 
A)  $5,350 
B)  $2,850 
C)  $5,850 
D)  $2,350

Question 12

The post-closing trial balance is used to determine if the ledger is in balance after closing.

Accepted Answer

A) True 
 B)False

Question 13

Closing entries

Accepted Answer

A)  need not be journalized since they appear on the worksheet. 
B)  need not be posted if the financial statements are prepared from the worksheet. 
C)  are not needed if adjusting entries are prepared. 
D)  must be journalized and posted. 
A)  need not be journalized since they appear on the worksheet. 
B)  need not be posted if the financial statements are prepared from the worksheet. 
C)  are not needed if adjusting entries are prepared. 
D)  must be journalized and posted.

Question 14

There are 4 closing entries.

Accepted Answer

A) True 
 B)False

Question 15

Determine the ending owner's equity of a business having a beginning owner's equity of $4,300, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750.

Accepted Answer

$7,550 [$4

Question 16

Income Summary

Accepted Answer

A)  is a temporary account. 
B)  is a permanent account. 
C)  summarizes revenue and expenses and transfers the balance to Capital. 
D)  Both A and C are correct. 
A)  is a temporary account. 
B)  is a permanent account. 
C)  summarizes revenue and expenses and transfers the balance to Capital. 
D)  Both A and C are correct.

Question 17

Why will the Income Summary account never appear on a financial statement?

Accepted Answer

The Income Summary account is used durin

Question 18

Which of the following accounts would NOT be considered a permanent account?

Accepted Answer

A)  Accounts Receivable 
B)  Salaries Expense 
C)  Accounts Payable 
D)  Office Supplies 
A)  Accounts Receivable 
B)  Salaries Expense 
C)  Accounts Payable 
D)  Office Supplies

Question 19

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 20

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. The result of this error is that

Accepted Answer

A)  before closing it, Income Summary will have a credit balance. 
B)  before closing it, Income Summary will have a debit balance. 
C)  the end of period capital will be understated. 
D)  the end of period capital will be overstated. 
A)  before closing it, Income Summary will have a credit balance. 
B)  before closing it, Income Summary will have a debit balance. 
C)  the end of period capital will be understated. 
D)  the end of period capital will be overstated.

Closing entries are prepared

M. Smuts showed a net income of $5,250. The entry to close the Income Summary account would include a

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

An account in which the balance is not carried over from one accounting period to the next is called a

The Withdrawals account is closed to Income Summary.

What are the major goals of the closing process?

Closing entries will affect

All closing entries must be posted before preparing the post-closing trial balance.

The post-closing trial balance contains the true ending figure for Capital.

The beginning capital balance is $4,350, there are no additional investments but the owner did withdraw $500 during the accounting period. The period's revenue is $5,000 and expenses total $6,500. What is the ending capital balance (after closing entries)?

The post-closing trial balance is used to determine if the ledger is in balance after closing.

Closing entries

There are 4 closing entries.

Determine the ending owner's equity of a business having a beginning owner's equity of $4,300, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750.

Income Summary

Why will the Income Summary account never appear on a financial statement?

Which of the following accounts would NOT be considered a permanent account?

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. The result of this error is that

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

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

Closing entries are prepared

M. Smuts showed a net income of $5,250. The entry to close the Income Summary account would include a

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

An account in which the balance is not carried over from one accounting period to the next is called a

The Withdrawals account is closed to Income Summary.

What are the major goals of the closing process?

Closing entries will affect

All closing entries must be posted before preparing the post-closing trial balance.

The post-closing trial balance contains the true ending figure for Capital.

The beginning capital balance is $4,350, there are no additional investments but the owner did withdraw $500 during the accounting period. The period's revenue is $5,000 and expenses total $6,500. What is the ending capital balance (after closing entries)?

The post-closing trial balance is used to determine if the ledger is in balance after closing.

Closing entries

There are 4 closing entries.

Determine the ending owner's equity of a business having a beginning owner's equity of $4,300, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750.

Income Summary

Why will the Income Summary account never appear on a financial statement?

Which of the following accounts would NOT be considered a permanent account?

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. The result of this error is that

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