Exam 4: Completing the Accounting Cycle

John Smith is the owner of Alpha Technologies Ltd.The beginning balance in Smith,capital was $90 000.The revenues and expenses were $70 000 and $50 000,respectively.If no drawings were made by Smith during the year,the ending balance in Smith,Capital must be $100 000.

Net profit (loss)is the difference between the total debits and the total credits in the Income statement columns.

The Interest expense in the worksheet's unadjusted trial balance column is $6000.Interest expense in the income statement column is $10,000.Which of the following entries would have caused this difference?

Which of the following accounts are temporary accounts that must be closed at the end of the year?

The last step in the closing process is to credit the Drawings account and debit the Capital account.

Which of the following accounts does NOT close at the end of the period?

Which of the following entries will be necessary to close the insurance expense account at the end of the year?

What is the key distinction between current and non-current liabilities?

Which account has a balance equal to profit immediately before it is closed?

Prepaid rent is usually a non-current asset.

In which of the columns of the worksheet would a loss be found?

The post-closing trial balance shows the updated Capital balance.

As part of the closing process,revenues and expenses are closed to a temporary account called Profit (loss).

Refer to the following adjusted trial balance. Accounts Debit Credit Cash \ 1900 Accounts receivable 3500 Office supplies 100 Equipment 20,500 Accumulated depreciation -equipment \ 3000 Accounts payable 1700 Salaries payable 350 Unearned revenue 550 Owner's name, capital 3200 Owner's name, drawings 3000 Service revenue 51,700 Salaries expense 23,000 Supplies expense 2200 Depreciation expense - equipment 1800 Total \ 1,000 \ 1,000 What will be the final ending balance in the Owner's name,capital account after posting the closing entries?

Below is a list of various balance sheet accounts and their balances. Accounts Debit Credit Building \ 120,000 Building \ 130,000 Cash 7000 Supplies 1000 Furniture 6000 Prepaid insurance 4700 Accumulated depreciation - furniture \ 950 Land 34,000 Accumulated depreciation - building 4700 Accounts receivable 950 What are the total non-current assets that would be shown on the balance sheet?

Buildings,land and equipment would be classified as:

Which of the following would be considered a non-current asset?

What is the result if the amount of profit for the year is less than the amount of the drawings?

Assets and liabilities are classified as either current or non-current to show their relative liquidity.

The post-closing trial balance lists the accounts from the general ledger in: