Question 1

The entry to close Income Summary (net loss)to Capital was omitted.This error will cause:

Accepted Answer

A) the ending capital to be overstated. 
B) the ending capital to be understated. 
C) no error in the ending capital balance. 
D) None of these is correct. 
A) the ending capital to be overstated. 
B) the ending capital to be understated. 
C) no error in the ending capital balance. 
D) None of these is correct.

Question 2

The Withdrawals account is closed to the Revenue account.

Accepted Answer

A) True 
 B)False

Question 3

B.Benson's worksheet showed the revenue account,Rental Fees,$1,300.The journal entry to close the account is:

Accepted Answer

A) 
$\begin{array}{ll}
\text { Rental Fees } & 1,300 \
\text { Income Summary }& 1,300
\end{array}$ 
B) 
$\begin{array}{|l|l|}
\hline\text { Benson, Capital } & 1,300 \
\hline \text { Rental Fees } & 1,300\\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|}
\hline\text { Rental Fees } & 1,300 \
\hline \text { Benson, Capital } & 1,300\\hline
\end{array}$ 
D) 
$\begin{array}{|l|l|}
\hline\text { Income Summary }&1,300 \
\hline \text { Rental Fees }&1,300\\hline
\end{array}$ 
A) 
$\begin{array}{ll}
\text { Rental Fees } & 1,300 \
\text { Income Summary }& 1,300
\end{array}$ 
B) 
$\begin{array}{|l|l|}
\hline\text { Benson, Capital } & 1,300 \
\hline \text { Rental Fees } & 1,300\\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|}
\hline\text { Rental Fees } & 1,300 \
\hline \text { Benson, Capital } & 1,300\\hline
\end{array}$ 
D) 
$\begin{array}{|l|l|}
\hline\text { Income Summary }&1,300 \
\hline \text { Rental Fees }&1,300\\hline
\end{array}$

Question 4

From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31,prepare the closing entries without explanation,assuming that a $1,000 withdrawal was made during the period.

Accepted Answer

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

Question 5

The Capital account debited and the withdrawals credited would be the result of:

Accepted Answer

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

Question 6

What are the major goals of the closing process?

Accepted Answer

Closing is a mechanical process that aid

Question 7

How do you close a revenue account?

Accepted Answer

A) Debit Capital;credit Revenue 
B) Credit Capital;debit Revenue 
C) Credit Income Summary;debit Revenue 
D) Debit Income Summary;credit Revenue 
A) Debit Capital;credit Revenue 
B) Credit Capital;debit Revenue 
C) Credit Income Summary;debit Revenue 
D) Debit Income Summary;credit Revenue

Question 8

The Rent Expense account had a normal balance of $1,100.The entry to close the account would include a:

Accepted Answer

A) debit to Rent Expense,$1,100. 
B) debit to Income Summary,$1,100. 
C) debit to Capital,$1,100. 
D) credit to Income Summary,$1,100. 
A) debit to Rent Expense,$1,100. 
B) debit to Income Summary,$1,100. 
C) debit to Capital,$1,100. 
D) credit to Income Summary,$1,100.

Question 9

Closing entries are found in the adjustment columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 10

Samantha's Design Studio showed office supplies available of $1,000.A count of the supplies left on hand as of June 30 was $500.The adjusting journal entry is:

Accepted Answer

A) 
$\begin{array}{l|l}
\text { Office Supplies } & 1,000 \
\hline \text { Office Supplies Expense } && 1,000
\end{array}$ 
B) 
$$\begin{array} { |c | l l| } 
\hline \text { Office Supplies Expense } & 1,000 & \
\hline \text { Office Supplies } & & 1,000 \
\hline
\end{array}$$ 
C) 
$\begin{array}{l|}
\text { Office Supplies } &500\
\hline \text { Office Supplies Expense }&&500
\end{array}$ 
D) 
$$\begin{array} { | c | l | } 
\hline \text { Office Supplies Expense } & 500 \
\hline \text { Office Supplies } & 500\
\hline
\end{array}$$ 
A) 
$\begin{array}{l|l}
\text { Office Supplies } & 1,000 \
\hline \text { Office Supplies Expense } && 1,000
\end{array}$ 
B) 
$$\begin{array} { |c | l l| } 
\hline \text { Office Supplies Expense } & 1,000 & \
\hline \text { Office Supplies } & & 1,000 \
\hline
\end{array}$$ 
C) 
$\begin{array}{l|}
\text { Office Supplies } &500\
\hline \text { Office Supplies Expense }&&500
\end{array}$ 
D) 
$$\begin{array} { | c | l | } 
\hline \text { Office Supplies Expense } & 500 \
\hline \text { Office Supplies } & 500\
\hline
\end{array}$$

Question 11

Which of the following sequence of actions describes the proper order in the accounting cycle?

Accepted Answer

A) Journalize,post,close,prepare financial statements,adjust,and analyze transactions 
B) Prepare financial statements,journalize,post,adjust,analyze transactions,close 
C) Analyze transactions,journalize,post,adjust,prepare financial statements,close 
D) Post,close,prepare financial statements,adjust,analyze transactions,and journalize 
A) Journalize,post,close,prepare financial statements,adjust,and analyze transactions 
B) Prepare financial statements,journalize,post,adjust,analyze transactions,close 
C) Analyze transactions,journalize,post,adjust,prepare financial statements,close 
D) Post,close,prepare financial statements,adjust,analyze transactions,and journalize

Question 12

The balance in the J.Higgins,Withdrawals account was $3,000.The entry to close the account would include a:

Accepted Answer

A) debit to Income Summary,$3,000. 
B) credit to Income Summary,$3,000. 
C) debit to J.Higgins,Capital,$3,000. 
D) debit to J.Higgins,Withdrawals,$3,000. 
A) debit to Income Summary,$3,000. 
B) credit to Income Summary,$3,000. 
C) debit to J.Higgins,Capital,$3,000. 
D) debit to J.Higgins,Withdrawals,$3,000.

Question 13

The entry to close the Fees Earned account would cause:

Accepted Answer

A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Fees Earned account to decrease. 
D) None of these is correct. 
A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Fees Earned account to decrease. 
D) None of these is correct.

Question 14

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 15

The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } 
\hline \text { Revenue } \$ 800 & \text { Cash } \$ 500 \
\hline \text { Expenses } \$ 400 & \text { Accounts Receivable } \$ 350 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Cash account?

Accepted Answer

A) $800 
B) $0 
C) $300 
D) $500. 
A) $800 
B) $0 
C) $300 
D) $500.

Question 16

After posting adjusting entries,the temporary accounts will be set back to zero.

Accepted Answer

A) True 
 B)False

Question 17

The income statement credit column of the worksheet showed the following revenues:
$$\begin{array} { | r | r |} 
\hline \text { Catering Fees Earned } & \$ 600 \
\hline \text { Cleaning Fees Earned } & 800 \
\hline
\end{array}$$
The journal entry to close the revenue accounts is:

Accepted Answer

A) 
$$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Income Summary }& 1,400 \
\hline \text { Catering Fees Earned } & 600 \
\hline \text { Cleaning Fees Earned } & 800 \
\hline
\end{array}
\end{array}$$ 
B) 
$\begin{array}{|l|l|}
\hline \text { Catering Fees Earned } & 600 \
\hline \text { Cleaning Fees Earned } &800 \
\hline \text { Income Summary } & 1,400 \
\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|}
\hline  \text { Capital } & 1,400 \
\hline  \text { Income Summary }& 1,400 \
\hline  \end{array}$ 
D) 
$\begin{array}{|l|l|}
\hline\text { Catering Fees Earned } & 600 \
\hline \text { Cleaning Fees Earned } & 300 \
\hline  \text { Capital } &1,400 \
\hline
\end{array}$ 
A) 
$$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Income Summary }& 1,400 \
\hline \text { Catering Fees Earned } & 600 \
\hline \text { Cleaning Fees Earned } & 800 \
\hline
\end{array}
\end{array}$$ 
B) 
$\begin{array}{|l|l|}
\hline \text { Catering Fees Earned } & 600 \
\hline \text { Cleaning Fees Earned } &800 \
\hline \text { Income Summary } & 1,400 \
\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|}
\hline  \text { Capital } & 1,400 \
\hline  \text { Income Summary }& 1,400 \
\hline  \end{array}$ 
D) 
$\begin{array}{|l|l|}
\hline\text { Catering Fees Earned } & 600 \
\hline \text { Cleaning Fees Earned } & 300 \
\hline  \text { Capital } &1,400 \
\hline
\end{array}$

Question 18

Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent)at the end of the period are:

Accepted Answer

A) closing entries. 
B) adjusting entries. 
C) sales entries. 
D) adjusting Cash. 
A) closing entries. 
B) adjusting entries. 
C) sales entries. 
D) adjusting Cash.

Question 19

________
 $$\begin{array} { | l | l l | } 
\hline \text { Capital }& \$ 11,000 \
\hline \text { Wapital } & \$ 11,000 \
\hline
\end{array}$$

Accepted Answer

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

Question 20

How do you close the expense accounts?

Accepted Answer

A) Debit Capital;credit the expense accounts 
B) Credit Capital;debit the expense accounts 
C) Credit Income Summary;debit the expense accounts 
D) Debit Income Summary;credit the expense accounts 
A) Debit Capital;credit the expense accounts 
B) Credit Capital;debit the expense accounts 
C) Credit Income Summary;debit the expense accounts 
D) Debit Income Summary;credit the expense accounts

Exam 5: The Accounting Cycle Completed

The entry to close Income Summary (net loss)to Capital was omitted.This error will cause:

The Withdrawals account is closed to the Revenue account.

B.Benson's worksheet showed the revenue account,Rental Fees,$1,300.The journal entry to close the account is:

From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31,prepare the closing entries without explanation,assuming that a $1,000 withdrawal was made during the period.

The Capital account debited and the withdrawals credited would be the result of:

What are the major goals of the closing process?

How do you close a revenue account?

The Rent Expense account had a normal balance of $1,100.The entry to close the account would include a:

Closing entries are found in the adjustment columns of the worksheet.

Samantha's Design Studio showed office supplies available of $1,000.A count of the supplies left on hand as of June 30 was $500.The adjusting journal entry is:

Which of the following sequence of actions describes the proper order in the accounting cycle?

The balance in the J.Higgins,Withdrawals account was $3,000.The entry to close the account would include a:

The entry to close the Fees Earned account would cause:

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 800 Cash \ 500 Expenses \ 400 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted,what is the balance in the Cash account?

After posting adjusting entries,the temporary accounts will be set back to zero.

The income statement credit column of the worksheet showed the following revenues: Catering Fees Earned \ 600 Cleaning Fees Earned 800 The journal entry to close the revenue accounts is:

Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent)at the end of the period are:

________ Capital \ 11,000 Wapital \ 11,000

How do you close the expense accounts?

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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