Question 1

Which of these accounts should be closed to the profit or loss summary account at the end of the financial period?

Accepted Answer

A) Insurance payable 
B) Prepaid insurance 
C) Accumulated depreciation 
D) Depreciation 
A) Insurance payable 
B) Prepaid insurance 
C) Accumulated depreciation 
D) Depreciation

Question 2

If telephone expenses for the year are $7900,made up of cash payments of $7400 and accrued telephone expense of $500 what is the amount of telephone expense that is closed to the profit and loss summary account?

Accepted Answer

A) Nil 
B) $500 
C) $7900 
D) $8400 
A) Nil 
B) $500 
C) $7900 
D) $8400

Question 3

Adjusting entries prepared for interim financial statements are:

Accepted Answer

A) always recorded in the journal. 
B) always recorded in the ledger. 
C) often recorded on a worksheet. 
D) there are usually no adjusting entries made when interim financial statements are prepared. 
A) always recorded in the journal. 
B) always recorded in the ledger. 
C) often recorded on a worksheet. 
D) there are usually no adjusting entries made when interim financial statements are prepared.

Question 4

If a profit has been earned for the year,before the closing entries,the profit or loss summary account has a___________________ balance.

Accepted Answer

A) debit 
B) credit 
C) positive 
D) negative 
A) debit 
B) credit 
C) positive 
D) negative

Question 5

When closing the accounts of a partnership it is true that:

Accepted Answer

A) partner's salaries must be treated as drawings because partners are owners. 
B) a retained profits account is used rather than a profit or loss summary account. 
C) profit is credited to each partner's capital account according to the profit sharing agreement. 
D) a loss for the period is carried forward and is not transferred to the partner's capital accounts. 
A) partner's salaries must be treated as drawings because partners are owners. 
B) a retained profits account is used rather than a profit or loss summary account. 
C) profit is credited to each partner's capital account according to the profit sharing agreement. 
D) a loss for the period is carried forward and is not transferred to the partner's capital accounts.

Which of these accounts should be closed to the profit or loss summary account at the end of the financial period?

If telephone expenses for the year are $7900,made up of cash payments of $7400 and accrued telephone expense of $500 what is the amount of telephone expense that is closed to the profit and loss summary account?

Adjusting entries prepared for interim financial statements are:

If a profit has been earned for the year,before the closing entries,the profit or loss summary account has a___________________ balance.

When closing the accounts of a partnership it is true that:

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

Exam 5: Completing the Accounting Cycle Closing and Reversing Entries

Which of these accounts should be closed to the profit or loss summary account at the end of the financial period?

If telephone expenses for the year are $7900,made up of cash payments of $7400 and accrued telephone expense of $500 what is the amount of telephone expense that is closed to the profit and loss summary account?

Adjusting entries prepared for interim financial statements are:

If a profit has been earned for the year,before the closing entries,the profit or loss summary account has a___________________ balance.

When closing the accounts of a partnership it is true that:

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