Question 1

The body of the income statement consists of an itemized list of

Accepted Answer

A)  assets and liabilities. 
B)  assets and owner's equity. 
C)  cash and revenues. 
D)  revenues and expenses. 
A)  assets and liabilities. 
B)  assets and owner's equity. 
C)  cash and revenues. 
D)  revenues and expenses.

Question 2

An income statement is an itemized statement that provides information regarding the status of the assets, liabilities, and owner's equity of a business enterprise as of a specified date.

Accepted Answer

A) True 
 B)False

Question 3

The income summary account is an account used only during the closing process.

Accepted Answer

A) True 
 B)False

Question 4

To close the income summary account with a credit balance, debit the account for its balance and credit the drawing account.

Accepted Answer

A) True 
 B)False

Question 5

The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the accounting cycle.

Accepted Answer

A) True 
 B)False

Question 6

The account to which revenue and expenses are closed is called

Accepted Answer

A)  Cash. 
B)  Drawing. 
C)  Income Summary. 
D)  Net Income. 
A)  Cash. 
B)  Drawing. 
C)  Income Summary. 
D)  Net Income.

Question 7

A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.

Accepted Answer

A) True 
 B)False

Question 8

The owner's equity in a business amounted to $56,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to

Accepted Answer

A)  $76,000. 
B)  $67,000. 
C)  $63,000. 
D)  $188,000. 
A)  $76,000. 
B)  $67,000. 
C)  $63,000. 
D)  $188,000.

Question 9

A form of balance sheet that lists the assets at the left and the liabilities and owner's equity at the right is called a report form of balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

The account to which the drawing account is closed is called

Accepted Answer

A)  Revenue. 
B)  Income Summary. 
C)  Owner's Capital. 
D)  Cash. 
A)  Revenue. 
B)  Income Summary. 
C)  Owner's Capital. 
D)  Cash.

Question 11

Assets, liabilities, and the owner's capital account are closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 12

The balance in an expense account is closed to a(n)

Accepted Answer

A)  capital account. 
B)  revenue account. 
C)  drawing account. 
D)  income summary account. 
A)  capital account. 
B)  revenue account. 
C)  drawing account. 
D)  income summary account.

Question 13

Match the terms with the definitions.
-Obligations that are due within either one year or the normal operating cycle of the business, whichever is longer, and that are to be paid out of current assets.

Accepted Answer

A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts 
A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts

Question 14

(Appendix) The accuracy of the statement of cash flows can be proved by comparing the cash provided by operating activities with the change in the cash balance.

Accepted Answer

A) True 
 B)False

Question 15

Match the terms with the definitions.
-Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet.

Accepted Answer

A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts 
A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts

Question 16

Match the terms with the definitions.
-The steps involved in accounting for all of the business activities during an accounting period.

Accepted Answer

A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts 
A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts

Question 17

The Income Summary account is used to

Accepted Answer

A)  close the revenue accounts only. 
B)  close the revenue accounts and expense accounts only. 
C)  close the drawing account. 
D)  close revenue accounts and expense accounts and update the owner's capital account. 
A)  close the revenue accounts only. 
B)  close the revenue accounts and expense accounts only. 
C)  close the drawing account. 
D)  close revenue accounts and expense accounts and update the owner's capital account.

Question 18

The journal entry to close the income summary account (showing a profit) includes

Accepted Answer

A)  debiting the drawing account and crediting Income Summary. 
B)  debiting Income Summary and crediting the drawing account. 
C)  debiting the owner's capital account and crediting Income Summary. 
D)  debiting Income Summary and crediting the owner's capital account. 
A)  debiting the drawing account and crediting Income Summary. 
B)  debiting Income Summary and crediting the drawing account. 
C)  debiting the owner's capital account and crediting Income Summary. 
D)  debiting Income Summary and crediting the owner's capital account.

Question 19

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

Accepted Answer

A)  ending balance that should be reported on the balance sheet. 
B)  beginning balance. 
C)  beginning balance plus additional investments. 
D)  beginning balance less withdrawals. 
A)  ending balance that should be reported on the balance sheet. 
B)  beginning balance. 
C)  beginning balance plus additional investments. 
D)  beginning balance less withdrawals.

Question 20

(Appendix) A utility bill for $315 was paid. This activity is classified as

Accepted Answer

A)  operating. 
B)  investing. 
C)  financing. 
D)  paying. 
A)  operating. 
B)  investing. 
C)  financing. 
D)  paying.

The body of the income statement consists of an itemized list of

An income statement is an itemized statement that provides information regarding the status of the assets, liabilities, and owner's equity of a business enterprise as of a specified date.

The income summary account is an account used only during the closing process.

To close the income summary account with a credit balance, debit the account for its balance and credit the drawing account.

The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the accounting cycle.

The account to which revenue and expenses are closed is called

A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.

The owner's equity in a business amounted to $56,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to

A form of balance sheet that lists the assets at the left and the liabilities and owner's equity at the right is called a report form of balance sheet.

The account to which the drawing account is closed is called

Assets, liabilities, and the owner's capital account are closed at the end of the accounting period.

The balance in an expense account is closed to a(n)

Match the terms with the definitions. -Obligations that are due within either one year or the normal operating cycle of the business, whichever is longer, and that are to be paid out of current assets.

(Appendix) The accuracy of the statement of cash flows can be proved by comparing the cash provided by operating activities with the change in the cash balance.

Match the terms with the definitions. -Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet.

Match the terms with the definitions. -The steps involved in accounting for all of the business activities during an accounting period.

The Income Summary account is used to

The journal entry to close the income summary account (showing a profit) includes

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

(Appendix) A utility bill for $315 was paid. This activity is classified as

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters

Exam 6: Financial Statements and the Closing Process

The body of the income statement consists of an itemized list of

An income statement is an itemized statement that provides information regarding the status of the assets, liabilities, and owner's equity of a business enterprise as of a specified date.

The income summary account is an account used only during the closing process.

To close the income summary account with a credit balance, debit the account for its balance and credit the drawing account.

The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the accounting cycle.

The account to which revenue and expenses are closed is called

A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.

The owner's equity in a business amounted to $56,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to

A form of balance sheet that lists the assets at the left and the liabilities and owner's equity at the right is called a report form of balance sheet.

The account to which the drawing account is closed is called

Assets, liabilities, and the owner's capital account are closed at the end of the accounting period.

The balance in an expense account is closed to a(n)

Match the terms with the definitions. -Obligations that are due within either one year or the normal operating cycle of the business, whichever is longer, and that are to be paid out of current assets.

(Appendix) The accuracy of the statement of cash flows can be proved by comparing the cash provided by operating activities with the change in the cash balance.

Match the terms with the definitions. -Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet.

Match the terms with the definitions. -The steps involved in accounting for all of the business activities during an accounting period.

The Income Summary account is used to

The journal entry to close the income summary account (showing a profit) includes

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

(Appendix) A utility bill for $315 was paid. This activity is classified as

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters