Question 1

Which of the following is a temporary account?

Accepted Answer

A) Wages Expense 
B) Service Fees Earned 
C) Rent Expense 
D) All of the above are temporary accounts 
A) Wages Expense 
B) Service Fees Earned 
C) Rent Expense 
D) All of the above are temporary accounts

Question 2

Which of the following is a real account?

Accepted Answer

A) Cash 
B) Fees Earned 
C) Utilities Expense 
D) Withdrawals 
A) Cash 
B) Fees Earned 
C) Utilities Expense 
D) Withdrawals

Question 3

Which of the following accounts would NOT be considered a permanent account?

Accepted Answer

A) Accounts Receivable 
B) Depreciation Expense 
C) Accounts Payable 
D) Office Supplies 
A) Accounts Receivable 
B) Depreciation Expense 
C) Accounts Payable 
D) Office Supplies

Question 4

________
 $\begin{array}{|l|l|l|}
\hline\text { Insturance Expense } &  \$ 1,100 \
\hline  \text { Prepaid Instrance } && \$ 1,100\\hline
\end{array}$

Accepted Answer

The answer of ________
 \(\begin{array}{|l|l|l|}
\hline\text { Insturance Expense } &...

Question 5

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 6

Which of the following columns of the worksheet are referred to when preparing closing entries to the Income Summary?

Accepted Answer

A) Adjusted trial balance columns 
B) Balance sheet columns 
C) Adjustments columns 
D) Income statement columns 
A) Adjusted trial balance columns 
B) Balance sheet columns 
C) Adjustments columns 
D) Income statement columns

Question 7

A summary of selected ledger accounts appear below for S.Ball for the current calendar year.
   
Answer the following questions.
1.What was the total amount of withdrawals for the year?
2.What was the net income?
3.What was the total revenue?
4.What were the total expenses?

Accepted Answer

1.$6,000
2

Question 8

In the first space below,indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account.In the second space below,indicate by an (X)if the account should be closed.

Accepted Answer

The answer of In the first space below,indicate whether each...

Question 9

When closing the Withdrawal account:

Accepted Answer

A) Capital would increase. 
B) Capital would decrease. 
C) Income Summary will be debited. 
D) None of these is correct. 
A) Capital would increase. 
B) Capital would decrease. 
C) Income Summary will be debited. 
D) None of these is correct.

Question 10

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 11

Each individual revenue account is credited when closing,and the total of all the revenue accounts is transferred to Income Summary.

Accepted Answer

A) True 
 B)False

Question 12

The final step in the accounting cycle is:

Accepted Answer

A) preparing the post-closing trial balance. 
B) preparing the financial statements. 
C) posting the closing entries. 
D) posting the adjusting entries. 
A) preparing the post-closing trial balance. 
B) preparing the financial statements. 
C) posting the closing entries. 
D) posting the adjusting entries.

Question 13

M.Smuts showed a net income of $5,000.The entry to close the Income Summary account would include a:

Accepted Answer

A) debit to M.Smuts Capital,$5,000. 
B) credit to M.Smuts Capital,$5,000. 
C) debit to Income Summary,$5,000. 
D) Both B and C are correct. 
A) debit to M.Smuts Capital,$5,000. 
B) credit to M.Smuts Capital,$5,000. 
C) debit to Income Summary,$5,000. 
D) Both B and C are correct.

Question 14

In the first space below,indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account.In the second space below,indicate by an (X)if the account should be closed.

Accepted Answer

The answer of In the first space below,indicate whether each...

Question 15

________
 $$\begin{array} { | c | l | } 
\hline \text { Depreciation Expense } & \$ 200 \
\hline \text { Accumulated Depreciation } & \$ 200 \
\hline
\end{array}$$

Accepted Answer

The answer of ________
 \[\begin{array} { | c | l...

Question 16

From the following accounts,prepare in proper form a post-closing trial balance for Matison Company on December 31.
 $$\begin{array} { l r } 
\text { Accounts Receivable } & \$ 4,600 \
\text { Accounts Payable } & 1,290 \
\text { Cash } & 6,450 \
\text { Salaries Payable } & 1,660 \
\text { Supplies } & 500 \
\text { Prepaid Insurance } & 1,200 \
\text { Matison, Capital } & 9,800
\end{array}$$

Accepted Answer

The answer of From the following accounts,prepare in proper form...

Question 17

All closing entries must be posted after preparing the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 18

The beginning capital balance is $5,500,there are no additional investments but the owner did withdraw $500 during the accounting period.The period's revenue is $4,000 and expenses total $6,000.What is the ending capital balance (after closing entries)?

Accepted Answer

A) $5,500 
B) $6,000 
C) $3,500 
D) $3,000 
A) $5,500 
B) $6,000 
C) $3,500 
D) $3,000

Question 19

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 20

Each individual expense account is credited when closing,and the total of all the expense accounts is transferred to Income Summary.

Accepted Answer

A) True 
 B)False

Exam 5: The Accounting Cycle Completed

Which of the following is a temporary account?

Which of the following is a real account?

Which of the following accounts would NOT be considered a permanent account?

________ Insturance Expense \ 1,100 Prepaid Instrance \ 1,100

Which of the following columns of the worksheet are referred to when preparing closing entries to the Income Summary?

A summary of selected ledger accounts appear below for S.Ball for the current calendar year. Answer the following questions. 1.What was the total amount of withdrawals for the year? 2.What was the net income? 3.What was the total revenue? 4.What were the total expenses?

In the first space below,indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account.In the second space below,indicate by an (X)if the account should be closed.

When closing the Withdrawal account:

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:

Each individual revenue account is credited when closing,and the total of all the revenue accounts is transferred to Income Summary.

The final step in the accounting cycle is:

M.Smuts showed a net income of $5,000.The entry to close the Income Summary account would include a:

In the first space below,indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account.In the second space below,indicate by an (X)if the account should be closed.

________ Depreciation Expense \ 200 Accumulated Depreciation \ 200

From the following accounts,prepare in proper form a post-closing trial balance for Matison Company on December 31. Accounts Receivable \ 4,600 Accounts Payable 1,290 Cash 6,450 Salaries Payable 1,660 Supplies 500 Prepaid Insurance 1,200 Matison, Capital 9,800

All closing entries must be posted after preparing the post-closing trial balance.

The beginning capital balance is $5,500,there are no additional investments but the owner did withdraw $500 during the accounting period.The period's revenue is $4,000 and expenses total $6,000.What is the ending capital balance (after closing entries)?

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

Each individual expense account is credited when closing,and the total of all the expense accounts is transferred to Income Summary.

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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