Question 1

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

Accepted Answer

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

Question 2

In the normal accounting cycle, the

Accepted Answer

A)  financial statements are prepared after the adjusting entries are posted. 
B)  financial statements are prepared before the adjusting entries are posted. 
C)  adjusting and closing entries are journalized before the financial statements are prepared. 
D)  post-closing trial balance is prepared before the closing entries are posted. 
A)  financial statements are prepared after the adjusting entries are posted. 
B)  financial statements are prepared before the adjusting entries are posted. 
C)  adjusting and closing entries are journalized before the financial statements are prepared. 
D)  post-closing trial balance is prepared before the closing entries are posted.

Question 3

A temporary account in the ledger used for closing revenues and expenses is

Accepted Answer

A)  capital. 
B)  withdrawals. 
C)  income summary. 
D)  net income. 
A)  capital. 
B)  withdrawals. 
C)  income summary. 
D)  net income.

Question 4

When the post-closing trial balance is prepared, the adjusting entries have not been made.

Accepted Answer

A) True 
 B)False

Question 5

The Withdrawals account is closed to Income Summary.

Accepted Answer

A) True 
 B)False

Question 6

The following normal account balances were found on the general ledger before closing entries were prepared: $$\begin{array} { l r l r } 
\text { Revenue } & \$ 700 & \text { Cash } & \$ 500 \
\text { Expenses } & \$ 400 & \text { Accounts Receivable } & \$ 350 \
\text { Capital } & \$ 7,500 & \text { Withdrawals } & \$ 1,000
\end{array}$$
After closing entries are posted, what is the balance in the Capital account?

Accepted Answer

A)  $7,800 
B)  $7,500 
C)  $6,800 
D)  Closing entries do not affect the Capital account. 
A)  $7,800 
B)  $7,500 
C)  $6,800 
D)  Closing entries do not affect the Capital account.

Question 7

A nominal account is the same as a permanent account.

Accepted Answer

A) True 
 B)False

Question 8

After posting closing entries, the Capital account will be set back to zero.

Accepted Answer

A) True 
 B)False

Question 9

From the following accounts, prepare in proper form a post-closing trial balance for Vemer Company on December 31, 2019 Note: these balances are before closing.
$$\begin{array} { l r } 
\text { J. Vemer, Capital } & \$ 5,500 \
\text { Cash } & 1,000 \
\text { Accumulated Depreciation } & 2,000 \
\text { Equipment } & 6,000 \
\text { Accounts Payable } & 500 \
\text { J. Vemer, Withdrawals } & 700 \
\text { Wages Expense } & 5,000 \
\text { Supplies Expense } & 300 \
\text { Accounts Receivable } & 2,000 \
\text { Janitor Fees } \backslash & 7,000
\end{array}$$

Accepted Answer

Vemer Company
Post-Closing Trial Balance

Question 10

The business failed to close any of the revenue accounts. The result of this error is that

Accepted Answer

A)  revenues will be understated. 
B)  capital will be understated. 
C)  the assets will be overstated. 
D)  the liabilities will be overstated. 
A)  revenues will be understated. 
B)  capital will be understated. 
C)  the assets will be overstated. 
D)  the liabilities will be overstated.

Question 11

The balance in the J. Higgins, Withdrawals account was $4,700. The entry to close the account would include a

Accepted Answer

A)  debit to Income Summary, $4,700. 
B)  credit to Income Summary, $4,700. 
C)  debit to J. Higgins, Capital, $4,700. 
D)  debit to J. Higgins, Withdrawals, $4,700. 
A)  debit to Income Summary, $4,700. 
B)  credit to Income Summary, $4,700. 
C)  debit to J. Higgins, Capital, $4,700. 
D)  debit to J. Higgins, Withdrawals, $4,700.

Question 12

Which of the following accounts is NOT a temporary account?

Accepted Answer

A)  Withdrawals 
B)  Fees Earned 
C)  Cash 
D)  Income Summary 
A)  Withdrawals 
B)  Fees Earned 
C)  Cash 
D)  Income Summary

Question 13

All permanent accounts can be found

Accepted Answer

A)  on the Income Statement. 
B)  on the Statement of Owner's Equity. 
C)  on the Balance Sheet. 
D)  Permanent accounts do not appear on the financial statements. 
A)  on the Income Statement. 
B)  on the Statement of Owner's Equity. 
C)  on the Balance Sheet. 
D)  Permanent accounts do not appear on the financial statements.

Question 14

The entry to close the Fees Earned account would cause

Accepted Answer

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

Question 15

The entry to close the revenue account(s) was entered in reverse-Income Summary was debited and the revenue account(s) was/were 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 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 16

Why are certain accounts called temporary accounts?

Accepted Answer

Temporary accounts balances are not carr

Question 17

The beginning capital balance is $1,000; there are no additional investments or withdrawals by the owner during the accounting period. The period's revenue is $500 and expenses total $450. What is the ending capital balance (after closing entries)?

Accepted Answer

A)  $1,050 
B)  $1,500 
C)  $1,450 
D)  $50 
A)  $1,050 
B)  $1,500 
C)  $1,450 
D)  $50

Question 18

The following normal account balances were found on the general ledger before closing entries were prepared: $$\begin{array} { l r l r } 
\text { Revenue } & \$ 700 & \text { Cash } & \$ 500 \
\text { Expenses } & \$ 400 & \text { Accounts Receivable } & \$ 350 \
\text { Capital } & \$ 7,500 & \text { Withdrawals } & \$ 1,000
\end{array}$$
After closing entries are posted, what is the balance in the Cash account?

Accepted Answer

A)  $800 
B)  $0 
C)  $300 
D)  Closing entries do not affect the Cash account. 
A)  $800 
B)  $0 
C)  $300 
D)  Closing entries do not affect the Cash account.

Question 19

When the Withdrawals account is closed,

Accepted Answer

A)  Owner's Capital will be debited. 
B)  Income Summary will be debited. 
C)  Income Summary will be credited. 
D)  None of these are correct. 
A)  Owner's Capital will be debited. 
B)  Income Summary will be debited. 
C)  Income Summary will be credited. 
D)  None of these are correct.

Question 20

Closing entries will update the Capital account to the same figure that is on the balance sheet for that date.

Accepted Answer

A) True 
 B)False

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

In the normal accounting cycle, the

A temporary account in the ledger used for closing revenues and expenses is

When the post-closing trial balance is prepared, the adjusting entries have not been made.

The Withdrawals account is closed to Income Summary.

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 700 Cash \ 500 Expenses \ 400 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted, what is the balance in the Capital account?

A nominal account is the same as a permanent account.

After posting closing entries, the Capital account will be set back to zero.

The business failed to close any of the revenue accounts. The result of this error is that

The balance in the J. Higgins, Withdrawals account was $4,700. The entry to close the account would include a

Which of the following accounts is NOT a temporary account?

All permanent accounts can be found

The entry to close the Fees Earned account would cause

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

Why are certain accounts called temporary accounts?

The beginning capital balance is $1,000; there are no additional investments or withdrawals by the owner during the accounting period. The period's revenue is $500 and expenses total $450. What is the ending capital balance (after closing entries)?

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 700 Cash \ 500 Expenses \ 400 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted, what is the balance in the Cash account?

When the Withdrawals account is closed,

Closing entries will update the Capital account to the same figure that is on the balance sheet for that date.

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

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

In the normal accounting cycle, the

A temporary account in the ledger used for closing revenues and expenses is

When the post-closing trial balance is prepared, the adjusting entries have not been made.

The Withdrawals account is closed to Income Summary.

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 700 Cash \ 500 Expenses \ 400 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted, what is the balance in the Capital account?

A nominal account is the same as a permanent account.

After posting closing entries, the Capital account will be set back to zero.

The business failed to close any of the revenue accounts. The result of this error is that

The balance in the J. Higgins, Withdrawals account was $4,700. The entry to close the account would include a

Which of the following accounts is NOT a temporary account?

All permanent accounts can be found

The entry to close the Fees Earned account would cause

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

Why are certain accounts called temporary accounts?

The beginning capital balance is $1,000; there are no additional investments or withdrawals by the owner during the accounting period. The period's revenue is $500 and expenses total $450. What is the ending capital balance (after closing entries)?

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 700 Cash \ 500 Expenses \ 400 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted, what is the balance in the Cash account?

When the Withdrawals account is closed,

Closing entries will update the Capital account to the same figure that is on the balance sheet for that date.

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