Question 1

The correct order for closing accounts is:

Accepted Answer

A) revenue,expenses,income summary,withdrawals. 
B) revenue,income summary,expenses,withdrawals. 
C) revenue,expenses,capital,withdrawals. 
D) revenue,capital,expenses,withdrawals. 
A) revenue,expenses,income summary,withdrawals. 
B) revenue,income summary,expenses,withdrawals. 
C) revenue,expenses,capital,withdrawals. 
D) revenue,capital,expenses,withdrawals.

Question 2

After closing the revenue and expense accounts,Income Summary showed a debit balance of $1,500.Which of the following statements is true?

Accepted Answer

A) The company had a net loss of $1,500. 
B) The company had a net income of $1,500. 
C) The company's cash increased $1,500. 
D) None of these answers is correct. 
A) The company had a net loss of $1,500. 
B) The company had a net income of $1,500. 
C) The company's cash increased $1,500. 
D) None of these answers is correct.

Question 3

The first entry to close accounts is to credit Revenue and debit Income Summary.

Accepted Answer

A) True 
 B)False

Question 4

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

Accepted Answer

A) True 
 B)False

Question 5

The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } 
\hline \text { Revenue } \$ 900 & \text { Cash } \$ 500 \
\hline \text { Expenses } \$ 500 & \text { Accounts Receivable } \$ 350 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Revenue account?

Accepted Answer

A) $800 
B) $0 
C) $400 
D) Closing entries do not affect Revenue. 
A) $800 
B) $0 
C) $400 
D) Closing entries do not affect Revenue.

Question 6

When revenue is 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 7

When the Withdrawals account is closed:

Accepted Answer

A) Owner's Capital will be debited. 
B) Income Summary will be debited. 
C) Income Summary will be credited. 
D) Revenue will be debited. 
A) Owner's Capital will be debited. 
B) Income Summary will be debited. 
C) Income Summary will be credited. 
D) Revenue will be debited.

Question 8

The balance in Income Summary after posting all revenues and expenses for the period is equal to net income/loss.

Accepted Answer

A) True 
 B)False

Question 9

From the following accounts,prepare in proper form a post-closing trial balance for Logan's Pet Sitting on December 31.(Note: These balances are before closing).
 $$\begin{array} { l r } 
\text { Logan, Capital } & \$ 7,500 \
\text { Cash } & 2,750 \
\text { Accumulated Depreciation } & 1,500 \
\text { Equipment } & 5,000 \
\text { Accounts Payable } & 900 \
\text { Logan, Withdrawals } & 1,000 \
\text { Wages Expense } & 1,250 \
\text { Supplies Expense } & 1,775 \
\text { Accounts Receivable } & 3,125 \
\text { Personal Trainer Fees } & 5,000
\end{array}$$

Accepted Answer

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

Question 10

The entry to close the expense account(s)was entered in reverse-Income Summary was credited and the expense account(s)was/were debited.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 understated. 
D) the liabilities will be understated. 
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 understated. 
D) the liabilities will be understated.

Question 11

Determine the beginning owner's equity of a business having an ending owner's equity of $6,000,withdrawals of $1,250,and after closing the revenues and expenses,the Income Summary account has a debit balance of $2,100.
$ ________

Accepted Answer

$9,350 [$6

Question 12

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

Accepted Answer

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

Question 13

The balance in the Rent Expense account on the worksheet was $150.The journal entry to close the Rent Expense account is:

Accepted Answer

A) 
$\begin{array}{|l|l|l|}
\hline\text { Rent Expense } & & 150 \
\hline  \text { Prepaid Rent Expense } & 150\\hline
\end{array}$ 
B) 
$\begin{array}{|l|l|}
\hline\text { Rent Expense } & 150 \
\hline  \text { Income Summary } & 150\\hline
\end{array}$ 
C) 
$$\begin{array} {| r | r | } 
\hline\text { Rent Expense } & 150 \
\hline \text { Capital } & 150 \
\hline
\end{array}$$ 
D) 
$$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Income Summary }& 150 \
\hline \text { Rent Expense } & 150 \
\hline
\end{array}
\end{array}$$ 
A) 
$\begin{array}{|l|l|l|}
\hline\text { Rent Expense } & & 150 \
\hline  \text { Prepaid Rent Expense } & 150\\hline
\end{array}$ 
B) 
$\begin{array}{|l|l|}
\hline\text { Rent Expense } & 150 \
\hline  \text { Income Summary } & 150\\hline
\end{array}$ 
C) 
$$\begin{array} {| r | r | } 
\hline\text { Rent Expense } & 150 \
\hline \text { Capital } & 150 \
\hline
\end{array}$$ 
D) 
$$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Income Summary }& 150 \
\hline \text { Rent Expense } & 150 \
\hline
\end{array}
\end{array}$$

Question 14

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A) Salaries Expense 
B) Fees Earned 
C) Utilities Expense 
D) All of the above are correct 
A) Salaries Expense 
B) Fees Earned 
C) Utilities Expense 
D) All of the above are correct

Question 15

Accounts in which the balances are carried over from one accounting period to the next are called:

Accepted Answer

A) real accounts. 
B) nominal accounts. 
C) temporary accounts. 
D) zero accounts. 
A) real accounts. 
B) nominal accounts. 
C) temporary accounts. 
D) zero accounts.

Question 16

When closing the Income Summary account when there is a net loss:

Accepted Answer

A) Capital would increase. 
B) Capital would decrease. 
C) Capital would remain the same. 
D) Revenue would decrease. 
A) Capital would increase. 
B) Capital would decrease. 
C) Capital would remain the same. 
D) Revenue would decrease.

Question 17

The ending balances in the ledger after posting the adjusting entries,will be the same amounts that are found on the worksheet in the adjusted trial balance column.

Accepted Answer

A) True 
 B)False

Question 18

Closing entries will:

Accepted Answer

A) increase the Owner's Capital. 
B) decrease the Cash balance. 
C) either increase or decrease Owner's Capital. 
D) not affect the Owner's Capital balance. 
A) increase the Owner's Capital. 
B) decrease the Cash balance. 
C) either increase or decrease Owner's Capital. 
D) not affect the Owner's Capital balance.

Question 19

Closing entries:

Accepted Answer

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

Question 20

On Flex Company's worksheet,the revenue account had a normal balance of $3,200.The entry to close the account would include a:

Accepted Answer

A) debit to Cash for $3,200. 
B) credit to Income Summary for $3,200. 
C) debit to Capital for $3,200. 
D) credit to Revenue for $3,200. 
A) debit to Cash for $3,200. 
B) credit to Income Summary for $3,200. 
C) debit to Capital for $3,200. 
D) credit to Revenue for $3,200.

Exam 5: The Accounting Cycle Completed

The correct order for closing accounts is:

After closing the revenue and expense accounts,Income Summary showed a debit balance of $1,500.Which of the following statements is true?

The first entry to close accounts is to credit Revenue and debit Income Summary.

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 900 Cash \ 500 Expenses \ 500 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted,what is the balance in the Revenue account?

When revenue is closed:

When the Withdrawals account is closed:

The balance in Income Summary after posting all revenues and expenses for the period is equal to net income/loss.

The entry to close the expense account(s)was entered in reverse-Income Summary was credited and the expense account(s)was/were debited.The result of this error is that:

Determine the beginning owner's equity of a business having an ending owner's equity of $6,000,withdrawals of $1,250,and after closing the revenues and expenses,the Income Summary account has a debit balance of $2,100. $ ________

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

The balance in the Rent Expense account on the worksheet was $150.The journal entry to close the Rent Expense account is:

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Accounts in which the balances are carried over from one accounting period to the next are called:

When closing the Income Summary account when there is a net loss:

The ending balances in the ledger after posting the adjusting entries,will be the same amounts that are found on the worksheet in the adjusted trial balance column.

Closing entries will:

Closing entries:

On Flex Company's worksheet,the revenue account had a normal balance of $3,200.The entry to close the account would include a:

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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