Question 1

After posting adjusting entries, the temporary accounts will be set back to zero.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) before closing it, Income Summary will have a credit balance. 
B) before closing it, Income Summary will have a debit balance. 
C) the assets will be overstated. 
D) the liabilities will be overstated. 
A) before closing it, Income Summary will have a credit balance. 
B) before closing it, Income Summary will have a debit balance. 
C) the assets will be overstated. 
D) the liabilities will be overstated.

Question 3

There are 7 closing entries.

Accepted Answer

A) True 
 B)False

Question 4

The following normal account balances were found on the general ledger before closing entries were prepared:   After closing entries are posted, what is the balance in the Revenue account?

Accepted Answer

A) $800 
B) $0 
C) $300 
D) Closing entries do not affect Revenue. 
A) $800 
B) $0 
C) $300 
D) Closing entries do not affect Revenue.

Question 5

Closing entries are prepared:

Accepted Answer

A) to clear all temporary accounts to zero. 
B) to update the Capital balance. 
C) at the end of the accounting period. 
D) All of the above are correct. 
A) to clear all temporary accounts to zero. 
B) to update the Capital balance. 
C) at the end of the accounting period. 
D) All of the above are correct.

Question 6

Samantha's Design Studio showed office supplies available of $800. A count of the supplies left on hand as of June 30 was $500. The adjusting journal entry is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 7

The balance in the Rent Expense account on the worksheet was $120. The journal entry to close the Rent Expense account is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 8

The entry to close the Depreciation Expense account would cause:

Accepted Answer

A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Depreciation Expense account balance to decrease. 
D) None of these are correct. 
A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Depreciation Expense account balance to decrease. 
D) None of these are correct.

Question 9

The income statement credit column of the worksheet showed the following revenues:   The journal entry to close the revenue accounts is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 10

Tim's Electrical Service purchased tools for $4,000. They have an expected life of 20 months and no residual value. The adjusting journal entry for the month is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 11

Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500.
$ ________

Accepted Answer

$11,950 [$

Question 12

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:
  
-

Accepted Answer

The answer of For each of the following, identify in...

Question 13

In the first space below, indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account. In the second space below, indicate by an (X)if the account should be closed.

Accepted Answer

1. R
 @#IMG-DLM& 3.

Question 14

Determine the ending owner's equity of a business having a beginning owner's equity of $4,200, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750.
$ ________

Accepted Answer

$7,450 [$4

Question 15

Each adjustment affects:

Accepted Answer

A) the income statement. 
B) the balance sheet. 
C) the cash account. 
D) Both A and B are correct. 
A) the income statement. 
B) the balance sheet. 
C) the cash account. 
D) Both A and B are correct.

Question 16

The post-closing trial balance contains the true ending figure for Capital.

Accepted Answer

A) True 
 B)False

Question 17

When revenue is 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.

Question 18

The income statement debit column of the worksheet showed the following expenses:   The journal entry to close the expense accounts is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 19

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 20

A summary of selected ledger accounts appear below for S. Ball for the current calendar year.   Answer the following questions.
1. What was the total amount of withdrawals for the year?
2. What was the net income?
3. What was the total revenue?
4. What were the total expenses?

Accepted Answer

1. $6,000

Exam 5: The Accounting Cycle Completed

After posting adjusting entries, the temporary accounts will be set back to zero.

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

There are 7 closing entries.

The following normal account balances were found on the general ledger before closing entries were prepared: After closing entries are posted, what is the balance in the Revenue account?

Closing entries are prepared:

Samantha's Design Studio showed office supplies available of $800. A count of the supplies left on hand as of June 30 was $500. The adjusting journal entry is:

The balance in the Rent Expense account on the worksheet was $120. The journal entry to close the Rent Expense account is:

The entry to close the Depreciation Expense account would cause:

The income statement credit column of the worksheet showed the following revenues: The journal entry to close the revenue accounts is:

Tim's Electrical Service purchased tools for $4,000. They have an expected life of 20 months and no residual value. The adjusting journal entry for the month is:

Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500. $ ________

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: -

In the first space below, indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account. In the second space below, indicate by an (X)if the account should be closed.

Determine the ending owner's equity of a business having a beginning owner's equity of $4,200, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750. $ ________

Each adjustment affects:

The post-closing trial balance contains the true ending figure for Capital.

When revenue is closed:

The income statement debit column of the worksheet showed the following expenses: The journal entry to close the expense accounts is:

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.

A summary of selected ledger accounts appear below for S. Ball for the current calendar year. Answer the following questions. 1. What was the total amount of withdrawals for the year? 2. What was the net income? 3. What was the total revenue? 4. What were the total expenses?

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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