Question 1

When closing the Withdrawal account:

Accepted Answer

A)  Capital would increase. 
B)  Capital would decrease. 
C)  Income Summary will be debited. 
D)  None of these is correct. 
A)  Capital would increase. 
B)  Capital would decrease. 
C)  Income Summary will be debited. 
D)  None of these is correct.

Question 2

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

Accepted Answer

A)  Salary Expense 
B)  Owner's Capital 
C)  Accounts Payable 
D)  Income Summary 
A)  Salary Expense 
B)  Owner's Capital 
C)  Accounts Payable 
D)  Income Summary

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

John's Tree Service depreciation for the month is $500. The adjusting journal entry is:

Accepted Answer

The answer of John's Tree Service depreciation for the month...

Question 5

The balance in Income Summary after posting all revenues and expenses for the period is equal to the amount closed to the Capital account.

Accepted Answer

A) True 
 B)False

Question 6

On Petro 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.

Question 7

A real account is the same as a nominal account.

Accepted Answer

A) True 
 B)False

Question 8

Determine the beginning assets of a business having ending liabilities of $4,000, the liabilities decreased by $1,500 during the year, an ending owner's equity of $10,700, additional investments of $2,000, withdrawals of $15,600, and after closing the revenues and expenses the Income Summary account has a credit balance of $6,800.
$ ________

Accepted Answer

$12,300 [($4,000 + $

Question 9

The adjusting entry to record the expired rent would be to:

Accepted Answer

A)  debit Prepaid Rent Expense; credit Cash. 
B)  debit Cash; credit Prepaid Rent. 
C)  debit Prepaid Rent; credit Cash. 
D)  debit Rent Expense; credit Prepaid Rent. 
A)  debit Prepaid Rent Expense; credit Cash. 
B)  debit Cash; credit Prepaid Rent. 
C)  debit Prepaid Rent; credit Cash. 
D)  debit Rent Expense; credit Prepaid Rent.

Question 10

Revenues are closed to the Withdrawal account.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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 14

When Income Summary has a credit balance and the account is closed:

Accepted Answer

A)  Capital is decreased. 
B)  Capital is increased. 
C)  Withdrawals is increased. 
D)  Revenue is decreased. 
A)  Capital is decreased. 
B)  Capital is increased. 
C)  Withdrawals is increased. 
D)  Revenue is decreased.

Question 15

The Withdrawals account is closed to the Revenue account.

Accepted Answer

A) True 
 B)False

Question 16

Income Summary:

Accepted Answer

A)  is a temporary account. 
B)  is a permanent account. 
C)  summarizes revenues and expenses and transfers the balance to Capital. 
D)  Both A and C are correct. 
A)  is a temporary account. 
B)  is a permanent account. 
C)  summarizes revenues and expenses and transfers the balance to Capital. 
D)  Both A and C are correct.

Question 17

The adjusting entry to record depreciation for the company automobile would be:

Accepted Answer

A)  debit Cash; credit Accumulated Depreciation, Automobile. 
B)  debit Accumulated Depreciation, Automobile; credit Automobile. 
C)  debit Depreciation Expense, Automobile; credit Accumulated Depreciation, Automobile. 
D)  debit Depreciation Expense, Automobile; credit Automobile. 
A)  debit Cash; credit Accumulated Depreciation, Automobile. 
B)  debit Accumulated Depreciation, Automobile; credit Automobile. 
C)  debit Depreciation Expense, Automobile; credit Accumulated Depreciation, Automobile. 
D)  debit Depreciation Expense, Automobile; credit Automobile.

Question 18

Depreciation Expense is closed to Income Summary, but Accumulated Depreciation is not closed.

Accepted Answer

A) True 
 B)False

Question 19

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Question 20

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...

Exam 5: The Accounting Cycle Completed

When closing the Withdrawal account:

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

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

John's Tree Service depreciation for the month is $500. The adjusting journal entry is:

The balance in Income Summary after posting all revenues and expenses for the period is equal to the amount closed to the Capital account.

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

A real account is the same as a nominal account.

The adjusting entry to record the expired rent would be to:

Revenues are closed to the Withdrawal account.

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

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.

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

When Income Summary has a credit balance and the account is closed:

The Withdrawals account is closed to the Revenue account.

Income Summary:

The adjusting entry to record depreciation for the company automobile would be:

Depreciation Expense is closed to Income Summary, but Accumulated Depreciation is not closed.

Real accounts are those accounts with balances that are brought forward to the next accounting period.

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

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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