Exam 4: Completing the Accounting Cycle

The owner's Capital, Withdrawals, and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The amount of net income (or net loss) for the period is

The term post means entering transactions into the journal.

The post-closing trial balance will contain only real accounts.

The owner's Capital, Withdrawals, and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The total amount of expenses for the period is

Analyzing business transactions from source documents constitutes the communication stage of the accounting cycle.

The Withdrawals account bypasses the Income Summary account when it is being closed.

The owner's Capital, Withdrawals, and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The amount of net income (or net loss) for the period is

Use the following adjusted trial balance to answer the question(s) below. The amount of net income (or net loss) during the period is

The amount placed opposite the owner's Capital account in the Balance Sheet columns of the work sheet is the amount to be reflected for owner's Capital on the balance sheet.

An important purpose of closing entries is to

The adjusting entries involving Rent Receivable and Salaries Payable could be reversed.

After all closing entries have been posted, which of the following accounts is most likely to have a nonzero balance?

In preparing closing entries, which of the following columns of the work sheet are the most helpful?

The owner's Capital, Withdrawals, and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The total amount of revenue earned for the period is

Probably the last account to be listed on a post-closing trial balance would be

The work sheet is a type of accountant's working paper.

When the Balance Sheet columns of the work sheet are initially footed, they should be in balance.

On the completed work sheet, which set of columns usually should be out of balance after the initial footing?

Depreciation Expense-Buildings is a permanent account.

Accounts Receivable is a real account.