Question 1

The journal entry to close expense accounts includes

Accepted Answer

A)  debiting the expense accounts and crediting Income Summary. 
B)  debiting Income Summary and crediting the expense accounts. 
C)  debiting the expense accounts and crediting the owner's capital account. 
D)  debiting the expense accounts and crediting the drawing account. 
A)  debiting the expense accounts and crediting Income Summary. 
B)  debiting Income Summary and crediting the expense accounts. 
C)  debiting the expense accounts and crediting the owner's capital account. 
D)  debiting the expense accounts and crediting the drawing account.

Question 2

After posting the adjusting entries,the balance of the depreciation expense account should agree with the amount shown on the income statement.

Accepted Answer

A) True 
 B)False

Question 3

The heading for a balance sheet includes the name of the business,the title of the statement,and a period of time.

Accepted Answer

A) True 
 B)False

Question 4

Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business,whichever is longer,are called

Accepted Answer

A)  property. 
B)  plant. 
C)  equipment. 
D)  current assets. 
A)  property. 
B)  plant. 
C)  equipment. 
D)  current assets.

Question 5

Closing entries are made in the journal and posted to the ledger accounts.

Accepted Answer

A) True 
 B)False

Question 6

____________________ will be converted into cash or consumed within either one year or the normal operating cycle of the business,whichever is longer.

Accepted Answer

The answer of ____________________ will be converted into cash or...

Question 7

Match the terms with the definitions.
-Obligations that are not expected to be paid within a year and do not require the use of current assets.

Accepted Answer

A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts 
A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts

Question 8

Owner's equity can be increased through

Accepted Answer

A)  withdrawals by the owner. 
B)  investments by the owner. 
C)  expenses exceeding revenues. 
D)  purchases of assets for cash. 
A)  withdrawals by the owner. 
B)  investments by the owner. 
C)  expenses exceeding revenues. 
D)  purchases of assets for cash.

Question 9

To close a revenue account with a credit balance,debit the account for its balance and credit the income summary account.

Accepted Answer

A) True 
 B)False

Question 10

A balance sheet that groups similar items is called a(n)

Accepted Answer

A)  report form of balance sheet. 
B)  account form of balance sheet. 
C)  classified balance sheet. 
D)  temporary balance sheet. 
A)  report form of balance sheet. 
B)  account form of balance sheet. 
C)  classified balance sheet. 
D)  temporary balance sheet.

Question 11

The total assets amount to $26,000 and the total liabilities amount to $18,000.The amount of the owner's equity is

Accepted Answer

A)  $18,000. 
B)  $44,000. 
C)  $26,000. 
D)  $8,000. 
A)  $18,000. 
B)  $44,000. 
C)  $26,000. 
D)  $8,000.

Question 12

To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted,prepare the

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  adjustments. 
D)  post-closing trial balance. 
A)  balance sheet. 
B)  income statement. 
C)  adjustments. 
D)  post-closing trial balance.

Question 13

A form of balance sheet that lists the liabilities and the owner's equity sections below the assets section is called the

Accepted Answer

A)  account form. 
B)  journal form. 
C)  report form. 
D)  current form. 
A)  account form. 
B)  journal form. 
C)  report form. 
D)  current form.

Question 14

An income statement is an itemized statement for the purpose of providing information regarding the results of operations during a specified period of time.

Accepted Answer

A) True 
 B)False

Question 15

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

Accepted Answer

A)  ending balance that should be reported on the balance sheet. 
B)  beginning balance. 
C)  beginning balance plus additional investments. 
D)  beginning balance less withdrawals. 
A)  ending balance that should be reported on the balance sheet. 
B)  beginning balance. 
C)  beginning balance plus additional investments. 
D)  beginning balance less withdrawals.

Question 16

After the closing entries are journalized and posted,which of the following accounts would NOT have a balance?

Accepted Answer

A)  Cash 
B)  Office Supplies 
C)  Accounts Payable 
D)  Service Revenue 
A)  Cash 
B)  Office Supplies 
C)  Accounts Payable 
D)  Service Revenue

Question 17

The Account Title and Balance Sheet columns of the work sheet provide all of the information necessary to prepare the statement of owner's equity.

Accepted Answer

A) True 
 B)False

Question 18

Which step is taken at the end of the accounting period?

Accepted Answer

A)  analyze source documents 
B)  post to the general ledger accounts 
C)  prepare a trial balance 
D)  prepare a post-closing trial balance 
A)  analyze source documents 
B)  post to the general ledger accounts 
C)  prepare a trial balance 
D)  prepare a post-closing trial balance

Question 19

Match the terms with the definitions.
-The period of time required to purchase supplies and services and convert them back into cash.

Accepted Answer

A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts 
A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts

Question 20

Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000.Capital at the end of the month is

Accepted Answer

A)  $3,000. 
B)  $2,000. 
C)  $7,000. 
D)  $5,000. 
A)  $3,000. 
B)  $2,000. 
C)  $7,000. 
D)  $5,000.

The journal entry to close expense accounts includes

After posting the adjusting entries,the balance of the depreciation expense account should agree with the amount shown on the income statement.

The heading for a balance sheet includes the name of the business,the title of the statement,and a period of time.

Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business,whichever is longer,are called

Closing entries are made in the journal and posted to the ledger accounts.

____________________ will be converted into cash or consumed within either one year or the normal operating cycle of the business,whichever is longer.

Match the terms with the definitions. -Obligations that are not expected to be paid within a year and do not require the use of current assets.

Owner's equity can be increased through

To close a revenue account with a credit balance,debit the account for its balance and credit the income summary account.

A balance sheet that groups similar items is called a(n)

The total assets amount to $26,000 and the total liabilities amount to $18,000.The amount of the owner's equity is

To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted,prepare the

A form of balance sheet that lists the liabilities and the owner's equity sections below the assets section is called the

An income statement is an itemized statement for the purpose of providing information regarding the results of operations during a specified period of time.

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

After the closing entries are journalized and posted,which of the following accounts would NOT have a balance?

The Account Title and Balance Sheet columns of the work sheet provide all of the information necessary to prepare the statement of owner's equity.

Which step is taken at the end of the accounting period?

Match the terms with the definitions. -The period of time required to purchase supplies and services and convert them back into cash.

Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000.Capital at the end of the month is

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

Filters

Exam 6: Financial Statements and the Closing Process

The journal entry to close expense accounts includes

After posting the adjusting entries,the balance of the depreciation expense account should agree with the amount shown on the income statement.

The heading for a balance sheet includes the name of the business,the title of the statement,and a period of time.

Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business,whichever is longer,are called

Closing entries are made in the journal and posted to the ledger accounts.

____________________ will be converted into cash or consumed within either one year or the normal operating cycle of the business,whichever is longer.

Match the terms with the definitions. -Obligations that are not expected to be paid within a year and do not require the use of current assets.

Owner's equity can be increased through

To close a revenue account with a credit balance,debit the account for its balance and credit the income summary account.

A balance sheet that groups similar items is called a(n)

The total assets amount to $26,000 and the total liabilities amount to $18,000.The amount of the owner's equity is

To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted,prepare the

A form of balance sheet that lists the liabilities and the owner's equity sections below the assets section is called the

An income statement is an itemized statement for the purpose of providing information regarding the results of operations during a specified period of time.

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

After the closing entries are journalized and posted,which of the following accounts would NOT have a balance?

The Account Title and Balance Sheet columns of the work sheet provide all of the information necessary to prepare the statement of owner's equity.

Which step is taken at the end of the accounting period?

Match the terms with the definitions. -The period of time required to purchase supplies and services and convert them back into cash.

Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000.Capital at the end of the month is

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

Filters