Question 1

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

Accepted Answer

A) Salary Expense 
B) Owner's Capital 
C) Accounts Payable 
D) Income Summary 
A) Salary Expense 
B) Owner's Capital 
C) Accounts Payable 
D) Income Summary

Question 2

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:
 $$\begin{array} { | l | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { asset } & \text { debit } & \text { palance sheet } & \text { permanent } \
\hline
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \
\hline \text { Capital } & & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 3

When Income Summary has a credit balance and the account is closed:

Accepted Answer

A) Capital is decreased. 
B) Capital is increased. 
C) Withdrawals is increased. 
D) Revenue is increased. 
A) Capital is decreased. 
B) Capital is increased. 
C) Withdrawals is increased. 
D) Revenue is increased.

Question 4

A real account is the same as a permanent account.

Accepted Answer

A) True 
 B)False

Question 5

There are 7 closing entries.

Accepted Answer

A) True 
 B)False

Question 6

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 $600 and expenses total $550.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 7

The income statement debit column of the worksheet showed the following expenses:
$\begin{array}{|l|r|}
\hline\text { Supplies Expense } & \$ 600 \
\hline \text { Depreciation Expense } & 400 \
\hline \text { Salaries Expense } & 300 \
\hline
\end{array}$
The journal entry to close the expense accounts is:

Accepted Answer

A) 
$\begin{array}{|l|l|}
\hline \text { Income Summary } & 1,300 \
\hline \text { Supplies Expense } & 600 \
\hline \text { Depreciation Expense } & 400 \
\hline \text { Salaries Expense } &300\\hline
\end{array}$ 
B) 
  
C) 
  
D) 
$\begin{array}{|l|l|}
\hline\text { Capital } & 1,200 \
\hline \text { Income Summary } & 1,200\\hline
\end{array}$ 
A) 
$\begin{array}{|l|l|}
\hline \text { Income Summary } & 1,300 \
\hline \text { Supplies Expense } & 600 \
\hline \text { Depreciation Expense } & 400 \
\hline \text { Salaries Expense } &300\\hline
\end{array}$ 
B) 
  
C) 
  
D) 
$\begin{array}{|l|l|}
\hline\text { Capital } & 1,200 \
\hline \text { Income Summary } & 1,200\\hline
\end{array}$

Question 8

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

Question 9

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

Accepted Answer

A) incurred a net loss. 
B) incurred a net income. 
C) had more revenue than expenses. 
D) made an error in their closing entries. 
A) incurred a net loss. 
B) incurred a net income. 
C) had more revenue than expenses. 
D) made an error in their closing entries.

Question 10

Adjusting journal entries:

Accepted Answer

A) need not be journalized since they appear on the worksheet. 
B) need not be posted if the financial statements are prepared from the worksheet. 
C) are not needed if closing entries are prepared. 
D) must be journalized and posted. 
A) need not be journalized since they appear on the worksheet. 
B) need not be posted if the financial statements are prepared from the worksheet. 
C) are not needed if closing entries are prepared. 
D) must be journalized and posted.

Question 11

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

Accepted Answer

A) The company had a net income. 
B) The owner invested an additional amount. 
C) The owner made a withdrawal. 
D) All of these answers are correct. 
A) The company had a net income. 
B) The owner invested an additional amount. 
C) The owner made a withdrawal. 
D) All of these answers are correct.

Question 12

Determine the ending owner's equity of a business having a beginning owner's equity of $3,200,withdrawals of $2,000,and after closing the revenues and expenses Income Summary has a credit balance of $5,250.
$ ________

Accepted Answer

$6,450 [$3

Question 13

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 14

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

Accepted Answer

A) Fees Earned 
B) Rent Expense 
C) Accounts Receivable 
D) Income Summary 
A) Fees Earned 
B) Rent Expense 
C) Accounts Receivable 
D) Income Summary

Question 15

Which of the following accounts is a temporary account?

Accepted Answer

A) Withdrawals 
B) Accounts Receivable 
C) Cash 
D) Accounts Payable 
A) Withdrawals 
B) Accounts Receivable 
C) Cash 
D) Accounts Payable

Question 16

To close the Withdrawals account:

Accepted Answer

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

Question 17

The entry to close Income Summary (net loss)was entered in reverse-Income Summary was debited and Capital was credited.This error will cause:

Accepted Answer

A) Income Summary to have a credit balance. 
B) Income Summary to have a debit balance. 
C) the assets to be overstated. 
D) the liabilities to be understated. 
A) Income Summary to have a credit balance. 
B) Income Summary to have a debit balance. 
C) the assets to be overstated. 
D) the liabilities to be understated.

Question 18

A real account is the same as a nominal account.

Accepted Answer

A) True 
 B)False

Question 19

Income Summary:

Accepted Answer

A) is a temporary account. 
B) is a permanent account. 
C) summarizes revenues and expenses and transfers the balance to Capital. 
D) Both A and C are correct. 
A) is a temporary account. 
B) is a permanent account. 
C) summarizes revenues and expenses and transfers the balance to Capital. 
D) Both A and C are correct.

Question 20

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Exam 5: The Accounting Cycle Completed

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

When Income Summary has a credit balance and the account is closed:

A real account is the same as a permanent account.

There are 7 closing entries.

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 $600 and expenses total $550.What is the ending capital balance (after closing entries)?

The income statement debit column of the worksheet showed the following expenses: Supplies Expense \ 600 Depreciation Expense 400 Salaries Expense 300 The journal entry to close the expense accounts is:

When the expenses are closed:

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

Adjusting journal entries:

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

Determine the ending owner's equity of a business having a beginning owner's equity of $3,200,withdrawals of $2,000,and after closing the revenues and expenses Income Summary has a credit balance of $5,250. $ ________

In the normal accounting cycle the:

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

Which of the following accounts is a temporary account?

To close the Withdrawals account:

The entry to close Income Summary (net loss)was entered in reverse-Income Summary was debited and Capital was credited.This error will cause:

A real account is the same as a nominal account.

Income Summary:

Real accounts are those accounts with balances that are brought forward to the next accounting period.

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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