Question 1

An account in which the balance is carried over from one accounting period to the next is called a:

Accepted Answer

A)  permanent account. 
B)  nominal account. 
C)  temporary account. 
D)  zero account. 
A)  permanent account. 
B)  nominal account. 
C)  temporary account. 
D)  zero account.

Question 2

The goal of closing is to clear all temporary accounts.

Accepted Answer

A) True 
 B)False

Question 3

Closing entries are prepared:

Accepted Answer

A)  to clear all temporary accounts to zero. 
B)  to update the Capital balance. 
C)  at the end of the accounting period. 
D)  All of the above are correct. 
A)  to clear all temporary accounts to zero. 
B)  to update the Capital balance. 
C)  at the end of the accounting period. 
D)  All of the above are correct.

Question 4

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 5

Accepted Answer

The answer of  ...

Question 6

Determine the ending owner's equity of a business having a beginning owner's equity of $3,200, withdrawals of $2,000, and after closing the revenues and expenses Income Summary has a credit balance of $5,250.
$ ________

Accepted Answer

$6,450 [$3

Question 7

The Withdrawals account is closed to Income Summary.

Accepted Answer

A) True 
 B)False

Question 8

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital 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 end of period capital will be understated. 
D)  the end of period capital 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 end of period capital will be understated. 
D)  the end of period capital will be overstated.

Question 9

All permanent accounts can be found:

Accepted Answer

A)  on the Income Statement. 
B)  on the Statement of Owner's Equity. 
C)  on the Balance Sheet. 
D)  Permanent accounts do not appear on the financial statements. 
A)  on the Income Statement. 
B)  on the Statement of Owner's Equity. 
C)  on the Balance Sheet. 
D)  Permanent accounts do not appear on the financial statements.

Question 10

Accepted Answer

The answer of  ...

Question 11

Closing entries will affect:

Accepted Answer

A)  total assets. 
B)  Cash. 
C)  Owner's Capital. 
D)  total liabilities. 
A)  total assets. 
B)  Cash. 
C)  Owner's Capital. 
D)  total liabilities.

Question 12

When revenue is closed:

Accepted Answer

A)  Owner's Capital will be debited. 
B)  Expenses will be debited. 
C)  Income Summary will be credited. 
D)  None of the above answers are correct. 
A)  Owner's Capital will be debited. 
B)  Expenses will be debited. 
C)  Income Summary will be credited. 
D)  None of the above answers are correct.

Question 13

Identify whether the entries below are an adjusting entry (AE) or a closing entry (CE).
-________

Accepted Answer

The answer of Identify whether the entries below are an...

Question 14

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 15

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

Accepted Answer

A)  Accounts Receivable 
B)  Depreciation Expense 
C)  Accounts Payable 
D)  Prepaid Rent Expense 
A)  Accounts Receivable 
B)  Depreciation Expense 
C)  Accounts Payable 
D)  Prepaid Rent Expense

Question 16

The beginning capital balance is $6,200, there are no additional investments, but the owner did withdraw $500 during the accounting period. The period's revenue is $4,300 and expenses total $6,100. What is the ending capital balance (after closing entries)?

Accepted Answer

A)  $6,200 
B)  $6,700 
C)  $4,400 
D)  $3,900 
A)  $6,200 
B)  $6,700 
C)  $4,400 
D)  $3,900

Question 17

The following normal account balances were found on the general ledger before closing entries were prepared:   After closing entries are posted, what is the balance in the Cash account?

Accepted Answer

A)  $800 
B)  $0 
C)  $200 
D)  $600 
A)  $800 
B)  $0 
C)  $200 
D)  $600

Question 18

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 19

Eav's Event Planning bought a computer on January 1st worth $5,000 with an expected life of 4 years and a residual value of $1,500. What is the adjusting journal entry for December 31 at the end of the first year?

Accepted Answer

The answer of Eav's Event Planning bought a computer on...

Question 20

From the following items in the income statement columns of the worksheet of Brandy's Tutoring at December 31, prepare the closing entries without explanation, assuming that a $2,000 withdrawal was made during the period.

Accepted Answer

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

Exam 5: The Accounting Cycle Completed

An account in which the balance is carried over from one accounting period to the next is called a:

The goal of closing is to clear all temporary accounts.

Closing entries are prepared:

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

Determine the ending owner's equity of a business having a beginning owner's equity of $3,200, withdrawals of $2,000, and after closing the revenues and expenses Income Summary has a credit balance of $5,250. $ ________

The Withdrawals account is closed to Income Summary.

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. The result of this error is that:

All permanent accounts can be found:

Closing entries will affect:

When revenue is closed:

Identify whether the entries below are an adjusting entry (AE) or a closing entry (CE). -________

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. $ ________

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

The beginning capital balance is $6,200, there are no additional investments, but the owner did withdraw $500 during the accounting period. The period's revenue is $4,300 and expenses total $6,100. What is the ending capital balance (after closing entries)?

The following normal account balances were found on the general ledger before closing entries were prepared: After closing entries are posted, what is the balance in the Cash account?

The final step in the accounting cycle is:

Eav's Event Planning bought a computer on January 1st worth $5,000 with an expected life of 4 years and a residual value of $1,500. What is the adjusting journal entry for December 31 at the end of the first year?

From the following items in the income statement columns of the worksheet of Brandy's Tutoring at December 31, prepare the closing entries without explanation, assuming that a $2,000 withdrawal was made during the period.

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

Filters