Exam 4: Completing the Accounting Cycle

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 withdrawals for the period is

Which of the following accounts would not be closed?

Reversing entries can be made for deferrals but not for accruals.

Closing entries will

When the Income Statement columns of the work sheet are initially footed, they should be out of balance by the amount of net income or net loss.

Which of the following is a nominal account?

Adjusting the accounts is part of the processing stage of the accounting cycle.

Income Summary is closed with a debit to Income Summary and a credit to the Withdrawals account.

Which of the following is not a temporary account?

There is sufficient information on a post-closing trial balance to prepare a statement of owner's equity.

A revenue account is closed with a credit to the revenue account and a debit to Income Summary.

The process of posting is associated most closely with the

The work sheet is prepared

In the accounting cycle, closing entries are prepared before adjusting entries.

Closing entries can be prepared by referring solely to the Income Statement columns of the work sheet.

Use the following adjusted trial balance to answer the question(s) below. The entry to close the expense accounts is

An important use of the work sheet is as an aid in the preparation of financial statements.

The amount for the Withdrawals account will appear in the Income Statement columns of a work sheet.

In preparing adjustments on the work sheet, which of the following accounts most likely would be added to the Account Name column?

Which of the following accounts appears in the Balance Sheet columns of a work sheet?