Question 1

Real accounts are

Accepted Answer

A) Not shown on the balance sheet. 
B) Another name for permanent accounts. 
C) Income statement accounts. 
D) Another name for temporary accounts. 
E) Closed at the end of the accounting period. 
A) Not shown on the balance sheet. 
B) Another name for permanent accounts. 
C) Income statement accounts. 
D) Another name for temporary accounts. 
E) Closed at the end of the accounting period.

Question 2

The ending balance of owner's capital is calculated as

Accepted Answer

A) Assets plus liabilities. 
B) Owner's capital account balance minus loss plus the withdrawals account balance. 
C) Profit minus the withdrawals account balance. 
D) Owner's capital account balance plus profit minus the withdrawals account balance. 
E) None of these answers is correct. 
A) Assets plus liabilities. 
B) Owner's capital account balance minus loss plus the withdrawals account balance. 
C) Profit minus the withdrawals account balance. 
D) Owner's capital account balance plus profit minus the withdrawals account balance. 
E) None of these answers is correct.

Question 3

A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000
during an accounting period. Which of the following entries should not be journalized in the closing process?

Accepted Answer

A)   
B)   
C)   
D)   
E) All of these should be journalized in the closing process. 
A)   
B)   
C)   
D)   
E) All of these should be journalized in the closing process.

Question 4

Describe a classified balance sheet

Accepted Answer

Classified balance sheets usually report

Question 5

Explain why closing entries are a necessary step in the accounting cycle

Accepted Answer

Closing entries are a necessary step bec

Question 6

) The items that follow appeared in the Income Statement columns of the work sheet prepared for a sole proprietorship at year-end, December 31, 2015. Also, the owner's withdrawals account was debited for $12,000 during the year.
Prepare the necessary closing entries at December 31.

Accepted Answer

The answer of ) The items that follow appeared in...

Question 7

The special account used only in the closing process to temporarily hold the amounts ofrevenues and expenses before the net difference is added to (or subtracted from)the owner's capital account is the:

Accepted Answer

A) Nominal account. 
B) Balance column account. 
C) Income Summary account. 
D) Contra account. 
E) Closing account. 
A) Nominal account. 
B) Balance column account. 
C) Income Summary account. 
D) Contra account. 
E) Closing account.

Question 8

Indicate beside each of the following accounts whether the account is a temporary or permanent account.(a)Cash(b)Prepaid insurance(c)Unearned Revenue(d)Accounts receivable(e)Insurance expense(f)Smith, capital(g)Smith, withdrawals(h)Rent expense(i)Revenue(j)Supplies(k)Supplies expense(l)Depreciation expense, building(m)Accumulated depreciation, building

Accepted Answer

(a) permanent (b) permanent (c

Question 9

Accounts that are used to describe revenues, expenses, and owner's withdrawals, andare closed at the end of the reporting period, are:

Accepted Answer

A) Ledger accounts. 
B) Closing accounts. 
C) Permanent accounts. 
D) Temporary accounts. 
E) Real accounts. 
A) Ledger accounts. 
B) Closing accounts. 
C) Permanent accounts. 
D) Temporary accounts. 
E) Real accounts.

Question 10

Discuss the purpose of a post-closing trial balance

Accepted Answer

A post-closing trial balance is a list o

Question 11

Internal documents prepared by accountants when organizing the information presented in formal reports to internal and external decision makers are called:

Accepted Answer

A) Adjusting papers. 
B) Working papers. 
C) Closing papers. 
D) Statement papers. 
E) Business papers. 
A) Adjusting papers. 
B) Working papers. 
C) Closing papers. 
D) Statement papers. 
E) Business papers.

Question 12

The Income Summary account is

Accepted Answer

A) Used in the closing process to summarize the amounts of revenues and expenses. 
B) Not a permanent account. 
C) The account from which the amount of profit or loss is transferred to the owners' capital accounts in a partnership. 
D) A temporary account. 
E) All of these answers are correct. 
A) Used in the closing process to summarize the amounts of revenues and expenses. 
B) Not a permanent account. 
C) The account from which the amount of profit or loss is transferred to the owners' capital accounts in a partnership. 
D) A temporary account. 
E) All of these answers are correct.

Question 13

The eight recurring steps performed each accounting period, starting with recordingtransactions in the journal and continuing through the post-closing trial balance, is called the:

Accepted Answer

A) Closing cycle. 
B) Natural business year. 
C) Accounting period. 
D) Operating cycle. 
E) Accounting cycle. 
A) Closing cycle. 
B) Natural business year. 
C) Accounting period. 
D) Operating cycle. 
E) Accounting cycle.

Question 14

131

Accepted Answer

The answer of 131  ...

Question 15

The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August
31, 2015, is shown below. Identify how each account balance would b e classified on a balance sheet given the following classification symbols:

Accepted Answer

The answer of The alphabetized adjusted trial balance for SimCo...

Question 16

The Unadjusted Trial Balance columns of a work sheet total $84,000Office supplies used during the period, $1,200Expiration of prepaid rent, $700.(3)Accrued salaries expense, $500Depreciation expense, $800.(5)Accrued repair service fees receivable, $400.The Adjusted Trial Balance columns total:

Accepted Answer

A) $84,000. 
B) $80,400. 
C) $87,600. 
D) $85,700. 
E) $85,900. 
A) $84,000. 
B) $80,400. 
C) $87,600. 
D) $85,700. 
E) $85,900.

Question 17

The following are the steps in the accounting cycle. List them in the order in which they are completed:Completing the work sheetPostingPreparing an unadjusted trial balanceJournalizingPreparing the statementsClosing the temporary accountsAdjusting the ledger accountsPreparing a post-closing trial balance

Accepted Answer

(1) Journalizing
(2) Posting
(3) Prepari

Question 18

If the Balance Sheet columns of a work sheet fail to balance when the amount of profit is added to the Balance Sheet Credit column, the cause could be:

Accepted Answer

A) An expense amount entered in the Balance Sheet Debit column. 
B) A liability amount entered in the Income Statement Credit column. 
C) An asset amount entered in the Income Statement Debit column. 
D) A liability amount entered in the Balance Sheet Debit column. 
E) A revenue amount entered in the Balance Sheet Credit column. 
A) An expense amount entered in the Balance Sheet Debit column. 
B) A liability amount entered in the Income Statement Credit column. 
C) An asset amount entered in the Income Statement Debit column. 
D) A liability amount entered in the Balance Sheet Debit column. 
E) A revenue amount entered in the Balance Sheet Credit column.

Question 19

Another name for temporary accounts is

Accepted Answer

A) Balance column accounts. 
B) Contra accounts. 
C) Accrued accounts. 
D) Real accounts. 
E) Nominal accounts. 
A) Balance column accounts. 
B) Contra accounts. 
C) Accrued accounts. 
D) Real accounts. 
E) Nominal accounts.

Question 20

Explain why temporary accounts are closed each period

Accepted Answer

Temporary accounts are closed at the end

Real accounts are

The ending balance of owner's capital is calculated as

A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process?

Describe a classified balance sheet

Explain why closing entries are a necessary step in the accounting cycle

) The items that follow appeared in the Income Statement columns of the work sheet prepared for a sole proprietorship at year-end, December 31, 2015. Also, the owner's withdrawals account was debited for $12,000 during the year. Prepare the necessary closing entries at December 31.

The special account used only in the closing process to temporarily hold the amounts ofrevenues and expenses before the net difference is added to (or subtracted from)the owner's capital account is the:

Accounts that are used to describe revenues, expenses, and owner's withdrawals, andare closed at the end of the reporting period, are:

Discuss the purpose of a post-closing trial balance

Internal documents prepared by accountants when organizing the information presented in formal reports to internal and external decision makers are called:

The Income Summary account is

The eight recurring steps performed each accounting period, starting with recordingtransactions in the journal and continuing through the post-closing trial balance, is called the:

131

The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31, 2015, is shown below. Identify how each account balance would b e classified on a balance sheet given the following classification symbols:

The Unadjusted Trial Balance columns of a work sheet total $84,000Office supplies used during the period, $1,200Expiration of prepaid rent, $700.(3)Accrued salaries expense, $500Depreciation expense, $800.(5)Accrued repair service fees receivable, $400.The Adjusted Trial Balance columns total:

If the Balance Sheet columns of a work sheet fail to balance when the amount of profit is added to the Balance Sheet Credit column, the cause could be:

Another name for temporary accounts is

Explain why temporary accounts are closed each period

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 4: Completing the Accounting Cycle and Classifying Accounts

Real accounts are

The ending balance of owner's capital is calculated as

A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process?

Describe a classified balance sheet

Explain why closing entries are a necessary step in the accounting cycle

) The items that follow appeared in the Income Statement columns of the work sheet prepared for a sole proprietorship at year-end, December 31, 2015. Also, the owner's withdrawals account was debited for $12,000 during the year. Prepare the necessary closing entries at December 31.

The special account used only in the closing process to temporarily hold the amounts ofrevenues and expenses before the net difference is added to (or subtracted from)the owner's capital account is the:

Accounts that are used to describe revenues, expenses, and owner's withdrawals, andare closed at the end of the reporting period, are:

Discuss the purpose of a post-closing trial balance

Internal documents prepared by accountants when organizing the information presented in formal reports to internal and external decision makers are called:

The Income Summary account is

The eight recurring steps performed each accounting period, starting with recordingtransactions in the journal and continuing through the post-closing trial balance, is called the:

131

The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31, 2015, is shown below. Identify how each account balance would b e classified on a balance sheet given the following classification symbols:

The Unadjusted Trial Balance columns of a work sheet total $84,000Office supplies used during the period, $1,200Expiration of prepaid rent, $700.(3)Accrued salaries expense, $500Depreciation expense, $800.(5)Accrued repair service fees receivable, $400.The Adjusted Trial Balance columns total:

If the Balance Sheet columns of a work sheet fail to balance when the amount of profit is added to the Balance Sheet Credit column, the cause could be:

Another name for temporary accounts is

Explain why temporary accounts are closed each period

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters