Question 1

The balance in the J.Higgins,Withdrawals account was $4,200.The entry to close the account would include a:

Accepted Answer

A) debit to Income Summary,$4,200. 
B) credit to Income Summary,$4,200. 
C) debit to J.Higgins,Capital,$4,200. 
D) debit to J.Higgins,Withdrawals,$4,200. 
A) debit to Income Summary,$4,200. 
B) credit to Income Summary,$4,200. 
C) debit to J.Higgins,Capital,$4,200. 
D) debit to J.Higgins,Withdrawals,$4,200.

Question 2

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
$$\begin{array}{l}
\text { Example: }\
\begin{array} { | l | l | l | r | l | } 
\hline & \text { Column } 1 & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } & \text { Permanent } \
\hline
\end{array}
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Accounts } & & & & \
\text { Payable } & & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | c | c | c |

Question 3

The beginning capital balance is $5,350,there are no additional investments but the owner did withdraw $500 during the accounting period.The period's revenue is $5,000 and expenses total $6,500.What is the ending capital balance (after closing entries)?

Accepted Answer

A) $5,350 
B) $2,850 
C) $5,850 
D) $3,350 
A) $5,350 
B) $2,850 
C) $5,850 
D) $3,350

Question 4

After closing the revenue and expense accounts,Income Summary showed a debit balance of $2,000.Which of the following statements is true?

Accepted Answer

A) The company had a net loss of $2,000. 
B) The company had a net income of $2,000. 
C) The company's cash increased $2,000. 
D) None of these answers are correct. 
A) The company had a net loss of $2,000. 
B) The company had a net income of $2,000. 
C) The company's cash increased $2,000. 
D) None of these answers are correct.

Question 5

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 6

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 7

On Flex Company's worksheet the revenue account had a normal balance of $3,800.The entry to close the account would include a:

Accepted Answer

A) debit to Income Summary for $3,800. 
B) credit to Income Summary for $3,800. 
C) debit to Flex,Capital for $3,800. 
D) credit to Revenue for $3,800. 
A) debit to Income Summary for $3,800. 
B) credit to Income Summary for $3,800. 
C) debit to Flex,Capital for $3,800. 
D) credit to Revenue for $3,800.

Question 8

Accounts in which the balances are carried over from one accounting period to the next are called:

Accepted Answer

A) real accounts. 
B) nominal accounts. 
C) temporary accounts. 
D) zero accounts. 
A) real accounts. 
B) nominal accounts. 
C) temporary accounts. 
D) zero accounts.

Question 9

Income Summary does not have a normal balance.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) closing the Income Summary account-there is a net income. 
B) closing the Income Summary account-there is a net loss. 
C) closing the revenue accounts. 
D) closing the expense accounts. 
A) closing the Income Summary account-there is a net income. 
B) closing the Income Summary account-there is a net loss. 
C) closing the revenue accounts. 
D) closing the expense accounts.

Question 11

Which of the following columns of the worksheet are referred to when preparing closing entries to the Income Summary?

Accepted Answer

A) Adjusted trial balance columns 
B) Balance sheet columns 
C) Adjustments columns 
D) Income statement columns 
A) Adjusted trial balance columns 
B) Balance sheet columns 
C) Adjustments columns 
D) Income statement columns

Question 12

From the following accounts,prepare in proper form a post-closing trial balance for Matison Company on December 31.
 $$\begin{array} { l l } 
\text { Accounts Receivable } & \$ 4,600 \
\text { Accounts Payable } & 1,290 \
\text { Cash } & 6,450 \
\text { Salaries Payable } & 1,660 \
\text { Supplies } & 500 \
\text { Prepaid Inurance } & 1,200 \
\text { Matioon, Capital } & 9,800
\end{array}$$

Accepted Answer

The answer of From the following accounts,prepare in proper form...

Question 13

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

Accepted Answer

A) True 
 B)False

Question 14

An account in which the balance is not carried over from one accounting period to the next is called a:

Accepted Answer

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) debit Accumulated Depreciation,Automobile; credit Depreciation Expense,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 Accumulated Depreciation,Automobile; credit Depreciation Expense,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

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

Accepted Answer

A) True 
 B)False

Question 19

The Income Summary account can be found on the worksheet.

Accepted Answer

A) True 
 B)False

Question 20

When the expenses are closed:

Accepted Answer

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

Exam 5: The Accounting Cycle Completed

The balance in the J.Higgins,Withdrawals account was $4,200.The entry to close the account would include a:

The beginning capital balance is $5,350,there are no additional investments but the owner did withdraw $500 during the accounting period.The period's revenue is $5,000 and expenses total $6,500.What is the ending capital balance (after closing entries)?

After closing the revenue and expense accounts,Income Summary showed a debit balance of $2,000.Which of the following statements is true?

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.

On Flex Company's worksheet the revenue account had a normal balance of $3,800.The entry to close the account would include a:

Accounts in which the balances are carried over from one accounting period to the next are called:

Income Summary does not have a normal balance.

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

Which of the following columns of the worksheet are referred to when preparing closing entries to the Income Summary?

From the following accounts,prepare in proper form a post-closing trial balance for Matison Company on December 31. Accounts Receivable \ 4,600 Accounts Payable 1,290 Cash 6,450 Salaries Payable 1,660 Supplies 500 Prepaid Inurance 1,200 Matioon, Capital 9,800

The income statement and balance sheet sections of the worksheet provide the information needed to prepare the closing entries.

An account in which the balance is not carried over from one accounting period to the next is called a:

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

Closing entries will affect:

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

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

The Income Summary account can be found on the worksheet.

When the expenses are closed:

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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