Question 1

Income Summary does not have a normal balance.

Accepted Answer

A) True 
 B)False

Question 2

After posting the closing entries, which of the following accounts is most likely NOT to have a zero balance?

Accepted Answer

A)  Prepaid Insurance 
B)  Advertising Expense 
C)  J. Smith, Withdrawals 
D)  Medical Fees 
A)  Prepaid Insurance 
B)  Advertising Expense 
C)  J. Smith, Withdrawals 
D)  Medical Fees

Question 3

The entry to close the Depreciation Expense account would cause

Accepted Answer

A)  the Capital account balance to increase. 
B)  the Capital account balance to decrease. 
C)  the Depreciation Expense account balance to decrease. 
D)  None of these are correct. 
A)  the Capital account balance to increase. 
B)  the Capital account balance to decrease. 
C)  the Depreciation Expense account balance to decrease. 
D)  None of these are correct.

Question 4

Information for closing entries comes from

Accepted Answer

A)  the worksheet. 
B)  the trial balance. 
C)  the post-closing trial balance. 
D)  the source documents. 
A)  the worksheet. 
B)  the trial balance. 
C)  the post-closing trial balance. 
D)  the source documents.

Question 5

The Income Summary account shows debits of $17,000 and credits of $12,000. This results in a

Accepted Answer

A)  net income of $29,000. 
B)  net loss of $29,000. 
C)  net income of $5,000. 
D)  net loss of $5,000. 
A)  net income of $29,000. 
B)  net loss of $29,000. 
C)  net income of $5,000. 
D)  net loss of $5,000.

Question 6

The first entry to close accounts is to debit Revenue and credit Income Summary.

Accepted Answer

A) True 
 B)False

Question 7

The Income Summary account debited and the expense accounts credited would be the result of

Accepted Answer

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

Question 8

The correct order for closing accounts is

Accepted Answer

A)  revenue, expenses, income summary, withdrawals. 
B)  revenue, income summary, expenses, withdrawals. 
C)  revenue, expenses, capital, withdrawals. 
D)  revenue, capital, expenses, withdrawals. 
A)  revenue, expenses, income summary, withdrawals. 
B)  revenue, income summary, expenses, withdrawals. 
C)  revenue, expenses, capital, withdrawals. 
D)  revenue, capital, expenses, withdrawals.

Question 9

Which of the following accounts will be directly closed to Capital at the end of the fiscal year?

Accepted Answer

A)  Salaries Expense 
B)  Fees Revenue 
C)  Withdrawals 
D)  Depreciation Expense 
A)  Salaries Expense 
B)  Fees Revenue 
C)  Withdrawals 
D)  Depreciation Expense

Question 10

The post-closing trial balance comes before the closing entries are posted.

Accepted Answer

A) True 
 B)False

Question 11

The Withdrawals account is closed to the Owner's Capital account.

Accepted Answer

A) True 
 B)False

Question 12

Closing entries will

Accepted Answer

A)  increase the Owner's Capital. 
B)  decrease the Owner's Capital balance. 
C)  either increase or decrease Owner's Capital. 
D)  not affect the Owner's Capital balance. 
A)  increase the Owner's Capital. 
B)  decrease the Owner's Capital balance. 
C)  either increase or decrease Owner's Capital. 
D)  not affect the Owner's Capital balance.

Question 13

From the following items in the income statement columns of the worksheet of Bob's Barbershop at December 31, prepare the closing entries without explanation, assuming that a $500 withdrawal was made during the period.
$$\begin{array}{l}
\text { Income Statement }\
\begin{array} { l r r } 
\text { Account } & \text { Debit } & \text { Credit } \
\text { Cutting Fees } & & 1,725 \
\text { Wages Expense } & 350 & \
\text { Rent Expense } & 300 & \
\text { Supplies Expense } & 225 & \
\text { Insurance Expense } & 125 & \overline { 1,725 } \
\text {  } & 1,000 & \
\text { Net Income } & 725 & \underline {   } \
& \underline { \underline { 1,725 } } & \underline { \underline { 1,725 } }
\end{array}
\end{array}$$

Accepted Answer

Cutting Fees 1,725
Income Summary 1,725

Question 14

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

Accepted Answer

A)  Accumulated Depreciation 
B)  Office Supplies 
C)  Accounts Receivable 
D)  Service Revenue 
A)  Accumulated Depreciation 
B)  Office Supplies 
C)  Accounts Receivable 
D)  Service Revenue

Question 15

The Depreciation Expense account is closed to the Owner's Capital account.

Accepted Answer

A) True 
 B)False

Question 16

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

Accepted Answer

A)  Income Summary 
B)  Owner's Capital 
C)  Unearned Revenue 
D)  Depreciation Expense 
A)  Income Summary 
B)  Owner's Capital 
C)  Unearned Revenue 
D)  Depreciation Expense

Question 17

Which of the following accounts would appear on the post-closing trial balance?

Accepted Answer

A)  Fees Earned 
B)  Wages Expense 
C)  Owner's Capital 
D)  Income Summary 
A)  Fees Earned 
B)  Wages Expense 
C)  Owner's Capital 
D)  Income Summary

Question 18

The entry to close the expense account(s) was entered in reverse-Income Summary was credited and the expense account(s) was/were debited. 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 assets will be overstated. 
D)  the liabilities 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 assets will be overstated. 
D)  the liabilities will be overstated.

Question 19

When the balance of the Income Summary account is a credit, the entry to close this account is

Accepted Answer

A)  debit Capital, credit Income Summary. 
B)  debit Income Summary; credit Revenue. 
C)  debit Income Summary; credit Capital. 
D)  debit Revenue; credit Income Summary. 
A)  debit Capital, credit Income Summary. 
B)  debit Income Summary; credit Revenue. 
C)  debit Income Summary; credit Capital. 
D)  debit Revenue; credit Income Summary.

Question 20

After all the closing entries have been posted the Income Summary account balance will

Accepted Answer

A)  have a zero balance. 
B)  have a balance the same as the capital account. 
C)  have a balance the same as the cash account. 
D)  vary from company to company. 
A)  have a zero balance. 
B)  have a balance the same as the capital account. 
C)  have a balance the same as the cash account. 
D)  vary from company to company.

Income Summary does not have a normal balance.

After posting the closing entries, which of the following accounts is most likely NOT to have a zero balance?

The entry to close the Depreciation Expense account would cause

Information for closing entries comes from

The Income Summary account shows debits of $17,000 and credits of $12,000. This results in a

The first entry to close accounts is to debit Revenue and credit Income Summary.

The Income Summary account debited and the expense accounts credited would be the result of

The correct order for closing accounts is

Which of the following accounts will be directly closed to Capital at the end of the fiscal year?

The post-closing trial balance comes before the closing entries are posted.

The Withdrawals account is closed to the Owner's Capital account.

Closing entries will

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

The Depreciation Expense account is closed to the Owner's Capital account.

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

Which of the following accounts would appear on the post-closing trial balance?

The entry to close the expense account(s) was entered in reverse-Income Summary was credited and the expense account(s) was/were debited. The result of this error is that

When the balance of the Income Summary account is a credit, the entry to close this account is

After all the closing entries have been posted the Income Summary account balance will

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

Income Summary does not have a normal balance.

After posting the closing entries, which of the following accounts is most likely NOT to have a zero balance?

The entry to close the Depreciation Expense account would cause

Information for closing entries comes from

The Income Summary account shows debits of $17,000 and credits of $12,000. This results in a

The first entry to close accounts is to debit Revenue and credit Income Summary.

The Income Summary account debited and the expense accounts credited would be the result of

The correct order for closing accounts is

Which of the following accounts will be directly closed to Capital at the end of the fiscal year?

The post-closing trial balance comes before the closing entries are posted.

The Withdrawals account is closed to the Owner's Capital account.

Closing entries will

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

The Depreciation Expense account is closed to the Owner's Capital account.

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

Which of the following accounts would appear on the post-closing trial balance?

The entry to close the expense account(s) was entered in reverse-Income Summary was credited and the expense account(s) was/were debited. The result of this error is that

When the balance of the Income Summary account is a credit, the entry to close this account is

After all the closing entries have been posted the Income Summary account balance will

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