Question 1

Cash distributions made to the owners of a company by the directors are called:

Accepted Answer

A) drawings. 
B) retained profits. 
C) dividends. 
D) shares. 
A) drawings. 
B) retained profits. 
C) dividends. 
D) shares.

Question 2

Assume that no reversing entries are made by this firm.If wages of $12 400 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $110 500 how would this payment be recorded?

Accepted Answer

A) Debit salaries payable $12 400; debit salaries expense $98 100; credit cash $110 500 
B) Credit salaries payable $12 400; debit salaries expense $122 900; credit cash $110 500 
C) Debit salaries payable $12 400; debit salaries expense $110 500; credit cash $122 900 
D) Debit salaries expense $98 100; credit cash$98 100 
A) Debit salaries payable $12 400; debit salaries expense $98 100; credit cash $110 500 
B) Credit salaries payable $12 400; debit salaries expense $122 900; credit cash $110 500 
C) Debit salaries payable $12 400; debit salaries expense $110 500; credit cash $122 900 
D) Debit salaries expense $98 100; credit cash$98 100

Question 3

Which of these accounts is closed to the profit or loss summary account?

Accepted Answer

A) GST outlays 
B) Depreciation expense 
C) Owner's drawings 
D) Prepaid insurance 
A) GST outlays 
B) Depreciation expense 
C) Owner's drawings 
D) Prepaid insurance

Question 4

What is the correct order for the steps in the closing process?
I Transfer the profit or loss to the owner's capital account
II Balance the owner's capital account
III Close the drawings account to the owner's capital account
IV Close the income and expense accounts to the profit or loss summary account

Accepted Answer

A) III,IV,II,I 
B) I,II,III,IV 
C) IV,III,I,II 
D) IV,III,II,I 
A) III,IV,II,I 
B) I,II,III,IV 
C) IV,III,I,II 
D) IV,III,II,I

Question 5

End of year records from Abbi's Boutique show:
$
Cash 20
GST outlays 35
Salaries payable 10
Rent expense 100
Interest expense 50
Prepaid rent 30
Salary expense 20
Rent collected in advance 20
During the closing process the total debit to the profit or loss summary account would be:

Accepted Answer

A) $90. 
B) $110. 
C) $80. 
D) $170. 
A) $90. 
B) $110. 
C) $80. 
D) $170.

Question 6

When reversing entries are used in the accounting system which of the following categories of adjusting entries are always reversed?
Accrued Expenses Accrued Revenue Depreciation

Accepted Answer

A) Yes Yes Yes 
B) No No No 
C) Yes Yes No 
D) No No Yes 
A) Yes Yes Yes 
B) No No No 
C) Yes Yes No 
D) No No Yes

Question 7

In which order do these steps in the accounting cycle occur?
I Prepare financial statements
Ii Prepare reversing entries
Iii Prepare adjusting entries
Iv Prepare closing entries
V Prepare an adjusted trial balance

Accepted Answer

A) iii,v,i,iv,ii 
B) v,iii,iv,i,ii 
C) iii,v,iv,ii,i 
D) v,iii,i,ii,iv 
A) iii,v,i,iv,ii 
B) v,iii,iv,i,ii 
C) iii,v,iv,ii,i 
D) v,iii,i,ii,iv

Question 8

Which of these is not a temporary account?

Accepted Answer

A) Sales revenue 
B) Bank 
C) Drawings 
D) Cleaning expense 
A) Sales revenue 
B) Bank 
C) Drawings 
D) Cleaning expense

Question 9

In the closing process which accounts are closed?

Accepted Answer

A) All ledger accounts 
B) All asset,liability and equity accounts 
C) All income and expense accounts 
D) All accounts that have been adjusted 
A) All ledger accounts 
B) All asset,liability and equity accounts 
C) All income and expense accounts 
D) All accounts that have been adjusted

Question 10

Which of these is not a permanent account?

Accepted Answer

A) Prepaid rent 
B) Rent expense 
C) Accounts receivable 
D) Owner's capital account 
A) Prepaid rent 
B) Rent expense 
C) Accounts receivable 
D) Owner's capital account

Question 11

Closing an account means:

Accepted Answer

A) transferring the balance to the trial balance. 
B) transferring the balance to the balance sheet. 
C) reducing the balance to zero. 
D) removing the account from the ledger. 
A) transferring the balance to the trial balance. 
B) transferring the balance to the balance sheet. 
C) reducing the balance to zero. 
D) removing the account from the ledger.

Question 12

Accounting entries made to reduce the temporary accounts to zero balances are known as:

Accepted Answer

A) correcting entries. 
B) adjusting entries. 
C) reversing entries. 
D) closing entries. 
A) correcting entries. 
B) adjusting entries. 
C) reversing entries. 
D) closing entries.

Question 13

Closing entries are made:

Accepted Answer

A) in the ledger only. 
B) in the journal and the ledger. 
C) in the journal only. 
D) on the worksheet. 
A) in the ledger only. 
B) in the journal and the ledger. 
C) in the journal only. 
D) on the worksheet.

Question 14

What type of account is dividend payable?

Accepted Answer

A) Asset 
B) Liability 
C) Income 
D) Equity 
A) Asset 
B) Liability 
C) Income 
D) Equity

Question 15

At the end of an accounting period wages expense of $190 000 is closed to the profit and loss summary account.The wages are made up of $180 000 paid in cash and accrued wages of $10 000.A reversing entry is made for accrued wages on the first day of the next accounting period.The first payment to employees for wages in the new year is $25 000.How would this payment be recorded?

Accepted Answer

A) Debit wages expense $15 000; debit accrued wages $10 000; credit bank $25 000 
B) Debit wages expense $25 000; credit bank $25 000 
C) Debit wages expense $15 000; credit bank $15 000 
D) Debit accrued wages $10 000; credit bank $10 000 
A) Debit wages expense $15 000; debit accrued wages $10 000; credit bank $25 000 
B) Debit wages expense $25 000; credit bank $25 000 
C) Debit wages expense $15 000; credit bank $15 000 
D) Debit accrued wages $10 000; credit bank $10 000

Question 16

J.Brown (sole trader)had a profit of $110 000 for the year.The closing general journal entry for the profit is which of the following?
Debit Credit
$ $

Accepted Answer

A) Cash 110 000 Capital 110 000 
B) Profit or loss summary 110 000 Capital 110 000 
C) Capital 110 000 Cash 110 000 
D) Capital 110 000 Profit or loss summary 110 000 
A) Cash 110 000 Capital 110 000 
B) Profit or loss summary 110 000 Capital 110 000 
C) Capital 110 000 Cash 110 000 
D) Capital 110 000 Profit or loss summary 110 000

Question 17

Accounting entries made at the end of an accounting year to reduce expense and income accounts to zero are called:

Accepted Answer

A) adjusting entries. 
B) correcting entries. 
C) end of period entries. 
D) closing entries. 
A) adjusting entries. 
B) correcting entries. 
C) end of period entries. 
D) closing entries.

Question 18

The balance in the profit or loss summary account before it is closed represents:

Accepted Answer

A) profit (or loss)less drawings. 
B) total expense. 
C) profit (or loss). 
D) total owner's capital. 
A) profit (or loss)less drawings. 
B) total expense. 
C) profit (or loss). 
D) total owner's capital.

Question 19

In the closing process which accounts are closed?

Accepted Answer

A) All ledger accounts 
B) All asset,liability and equity accounts 
C) All income and expense accounts 
D) All accounts that have been adjusted 
A) All ledger accounts 
B) All asset,liability and equity accounts 
C) All income and expense accounts 
D) All accounts that have been adjusted

Question 20

Assume that no reversing entries are made by this firm.If wages of $11 200 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $101 600 how would this payment be recorded?

Accepted Answer

A) Debit salaries payable $11 200; debit salaries expense $90 400; credit cash $101 600 
B) Credit salaries payable $11 200; debit salaries expense $112 800; credit cash $101 600 
C) Debit salaries payable $11 200; debit salaries expense $101 600; credit cash $112 800 
D) Debit salaries expense $90 400; credit cash $90 400 
A) Debit salaries payable $11 200; debit salaries expense $90 400; credit cash $101 600 
B) Credit salaries payable $11 200; debit salaries expense $112 800; credit cash $101 600 
C) Debit salaries payable $11 200; debit salaries expense $101 600; credit cash $112 800 
D) Debit salaries expense $90 400; credit cash $90 400

Cash distributions made to the owners of a company by the directors are called:

Assume that no reversing entries are made by this firm.If wages of $12 400 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $110 500 how would this payment be recorded?

Which of these accounts is closed to the profit or loss summary account?

End of year records from Abbi's Boutique show: $ Cash 20 GST outlays 35 Salaries payable 10 Rent expense 100 Interest expense 50 Prepaid rent 30 Salary expense 20 Rent collected in advance 20 During the closing process the total debit to the profit or loss summary account would be:

When reversing entries are used in the accounting system which of the following categories of adjusting entries are always reversed? Accrued Expenses Accrued Revenue Depreciation

In which order do these steps in the accounting cycle occur? I Prepare financial statements Ii Prepare reversing entries Iii Prepare adjusting entries Iv Prepare closing entries V Prepare an adjusted trial balance

Which of these is not a temporary account?

In the closing process which accounts are closed?

Which of these is not a permanent account?

Closing an account means:

Accounting entries made to reduce the temporary accounts to zero balances are known as:

Closing entries are made:

What type of account is dividend payable?

J.Brown (sole trader)had a profit of $110 000 for the year.The closing general journal entry for the profit is which of the following? Debit Credit $ $

Accounting entries made at the end of an accounting year to reduce expense and income accounts to zero are called:

The balance in the profit or loss summary account before it is closed represents:

In the closing process which accounts are closed?

Assume that no reversing entries are made by this firm.If wages of $11 200 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $101 600 how would this payment be recorded?

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

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Exam 5: Completing the Accounting Cycle Closing and Reversing Entries

Cash distributions made to the owners of a company by the directors are called:

Assume that no reversing entries are made by this firm.If wages of $12 400 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $110 500 how would this payment be recorded?

Which of these accounts is closed to the profit or loss summary account?

End of year records from Abbi's Boutique show: $ Cash 20 GST outlays 35 Salaries payable 10 Rent expense 100 Interest expense 50 Prepaid rent 30 Salary expense 20 Rent collected in advance 20 During the closing process the total debit to the profit or loss summary account would be:

When reversing entries are used in the accounting system which of the following categories of adjusting entries are always reversed? Accrued Expenses Accrued Revenue Depreciation

In which order do these steps in the accounting cycle occur? I Prepare financial statements Ii Prepare reversing entries Iii Prepare adjusting entries Iv Prepare closing entries V Prepare an adjusted trial balance

Which of these is not a temporary account?

In the closing process which accounts are closed?

Which of these is not a permanent account?

Closing an account means:

Accounting entries made to reduce the temporary accounts to zero balances are known as:

Closing entries are made:

What type of account is dividend payable?

J.Brown (sole trader)had a profit of $110 000 for the year.The closing general journal entry for the profit is which of the following? Debit Credit $ $

Accounting entries made at the end of an accounting year to reduce expense and income accounts to zero are called:

The balance in the profit or loss summary account before it is closed represents:

In the closing process which accounts are closed?

Assume that no reversing entries are made by this firm.If wages of $11 200 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $101 600 how would this payment be recorded?

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters