Question 1

Depreciation Expense is closed to Income Summary,but Accumulated Depreciation is not closed.

Accepted Answer

A) True 
 B)False  True

Question 2

An account in which the balance is carried over from one accounting period to the next is called a:

Accepted Answer

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

Question 3

________
 $\begin{array}{|l|l|}
\hline \text { Fees Earned } & \$ 18,000 \
\hline  \text { Income Summary }& \$ 18,000\\hline\end{array}$

Accepted Answer

CE

Question 4

The Withdrawals account is closed to Income Summary.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

The Income Summary account is used durin

Question 6

The goal of closing is to clear all temporary accounts and update Cash.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

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 9

Tim's Electrical Service purchased tools for $6,000.They have an expected life of 20 months and no residual value.The adjusting journal entry for the month is:

Accepted Answer

A) 
$\begin{array}{l|l}
\text { Depreciation Expense } & 300 \
\hline \text { Tools } && 300
\end{array}$ 
B) 
$\begin{array}{l|l}
\text { Depreciation Expense } & 300 \
\hline \text { Accumulated Depreciation } && 300
\end{array}$ 
C) 
$$\begin{array} { | c | l | } 
\hline \text { Accumulated Depreciation } & 300 \
\hline \text { Depreciation Expense } &300\\hline
\end{array}$$ 
D) 
$\begin{array}{l|l}
\text { Accumulated Depreciation } & 300 \
\hline \text { Equipment } && 300
\end{array}$ 
A) 
$\begin{array}{l|l}
\text { Depreciation Expense } & 300 \
\hline \text { Tools } && 300
\end{array}$ 
B) 
$\begin{array}{l|l}
\text { Depreciation Expense } & 300 \
\hline \text { Accumulated Depreciation } && 300
\end{array}$ 
C) 
$$\begin{array} { | c | l | } 
\hline \text { Accumulated Depreciation } & 300 \
\hline \text { Depreciation Expense } &300\\hline
\end{array}$$ 
D) 
$\begin{array}{l|l}
\text { Accumulated Depreciation } & 300 \
\hline \text { Equipment } && 300
\end{array}$

Question 10

The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } 
\hline \text { Revenue } \$ 1,100 & \text { Cash } \$ 600 \
\hline \text { Expenses } \$ 600 & \text { Accounts Receivable } \$ 400 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Capital account?

Accepted Answer

A) $8,000 
B) $7,500 
C) $7,000 
D) Closing entries do not affect the Capital account. 
A) $8,000 
B) $7,500 
C) $7,000 
D) Closing entries do not affect the Capital account.

Question 11

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary).
Example:
 $$\begin{array} { | l | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { asset } & \text { debit } & \text { palance sheet } & \text { permanent } \
\hline
\end{array}$$
-

Accepted Answer

The answer of For each of the following,identify in Column...

Question 12

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 13

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

Accepted Answer

A) incurred a net loss. 
B) incurred a net income. 
C) had more expenses than revenue. 
D) no owner withdrawals during the period. 
A) incurred a net loss. 
B) incurred a net income. 
C) had more expenses than revenue. 
D) no owner withdrawals during the period.

Question 14

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary).
Example:
 $$\begin{array} { | l | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { asset } & \text { debit } & \text { palance sheet } & \text { permanent } \
\hline
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \
\hline \text { Prepaid Rent } & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following,identify in Column...

Question 15

J.Oros showed a net loss of $3,500.The entry to close the Income Summary account would include a:

Accepted Answer

A) debit to Oros,Capital,$3,500. 
B) debit to Income Summary ,$3,500. 
C) credit to Oros,Capital,$3,500. 
D) credit to Cash,$3,500. 
A) debit to Oros,Capital,$3,500. 
B) debit to Income Summary ,$3,500. 
C) credit to Oros,Capital,$3,500. 
D) credit to Cash,$3,500.

Question 16

The adjusting entry to record depreciation for the company automobile would be:

Accepted Answer

A) debit Cash;credit Accumulated Depreciation,Automobile. 
B) debit Accumulated Depreciation,Automobile;credit Automobile. 
C) debit Depreciation Expense,Automobile;credit Accumulated Depreciation,Automobile. 
D) debit Depreciation Expense,Automobile;credit Automobile. 
A) debit Cash;credit Accumulated Depreciation,Automobile. 
B) debit Accumulated Depreciation,Automobile;credit Automobile. 
C) debit Depreciation Expense,Automobile;credit Accumulated Depreciation,Automobile. 
D) debit Depreciation Expense,Automobile;credit Automobile.

Question 17

Income Summary has a credit normal balance.

Accepted Answer

A) True 
 B)False

Question 18

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 19

From the following items in the income statement columns of the worksheet of Monaghan Company at December 31,prepare the closing entries without explanation,assuming that a $500 withdrawal was made during the period.

Accepted Answer

The answer of From the following items in the income...

Question 20

The adjusting entry to record the expired rent would be to:

Accepted Answer

A) debit Prepaid Rent;credit Rent Expense. 
B) debit Cash;credit Prepaid Rent. 
C) debit Prepaid Rent;credit Cash. 
D) debit Rent Expense;credit Prepaid Rent. 
A) debit Prepaid Rent;credit Rent Expense. 
B) debit Cash;credit Prepaid Rent. 
C) debit Prepaid Rent;credit Cash. 
D) debit Rent Expense;credit Prepaid Rent.

Exam 5: The Accounting Cycle Completed

Depreciation Expense is closed to Income Summary,but Accumulated Depreciation is not closed.

An account in which the balance is carried over from one accounting period to the next is called a:

________ Fees Earned \ 18,000 Income Summary \ 18,000

The Withdrawals account is closed to Income Summary.

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

The goal of closing is to clear all temporary accounts and update Cash.

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

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

Tim's Electrical Service purchased tools for $6,000.They have an expected life of 20 months and no residual value.The adjusting journal entry for the month is:

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 1,100 Cash \ 600 Expenses \ 600 Accounts Receivable \ 400 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted,what is the balance in the Capital account?

Closing entries are prepared:

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

J.Oros showed a net loss of $3,500.The entry to close the Income Summary account would include a:

The adjusting entry to record depreciation for the company automobile would be:

Income Summary has a credit normal balance.

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

From the following items in the income statement columns of the worksheet of Monaghan Company at December 31,prepare the closing entries without explanation,assuming that a $500 withdrawal was made during the period.

The adjusting entry to record the expired rent would be to:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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