Exam 5: The Accounting Cycle Completed

The entry to close the Fees Earned account would cause:

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

The final step in the accounting cycle is:

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

The Income Summary account shows debits of $19,000 and credits of $10,000. This results in a:

The entry to close the revenue account(s)was entered in reverse-Income Summary was debited and the revenue account(s)was/were credited. The result of this error is that:

When the Withdrawals account is closed:

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

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). Example: -

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

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

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

When the balance of the Income Summary account is a debit, the entry to close this account is:

The Withdrawals account is closed to Income Summary.

After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,000. Which of the following situations could have occurred?

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). Example: -

All permanent accounts can be found:

Which of the following accounts will be directly closed to Capital at the end of the fiscal year?

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

How do you close a revenue account?