Question 1

The post-closing trial balance would not include which of the following accounts?

Accepted Answer

A) Unearned Legal Fees 
B) Accumulated Depreciation-Office Equipment 
C) Withdrawals 
D) Owner's Capital 
A) Unearned Legal Fees 
B) Accumulated Depreciation-Office Equipment 
C) Withdrawals 
D) Owner's Capital

Question 2

The Trial Balance and Adjusted Trial Balance columns of Kathy's Cleaning Company's work sheet are shown below (the adjustments column has been omitted).In the journal provided,prepare the six adjusting entries and the four closing entries for the month ended June 30,20x5.No explanations are needed.

Accepted Answer

The answer of The Trial Balance and Adjusted Trial Balance...

Question 3

What two broad purposes do closing entries serve?

Accepted Answer

Closing entries zero out all nominal acc

Question 4

An adjusting entry was made on the last day of the previous fiscal year debiting Wages Expense and crediting Wages Payable.If a reversing entry has been made,then at the time of payment

Accepted Answer

A) the accountant needs to find out how much of the payment applies to the current period and how much applies to the previous period. 
B) the accountant will debit Wages Payable and Wages Expense,and credit Cash. 
C) the accountant will debit Wages Expense and credit Cash. 
D) the accountant will debit Cash and credit Wages Expense. 
A) the accountant needs to find out how much of the payment applies to the current period and how much applies to the previous period. 
B) the accountant will debit Wages Payable and Wages Expense,and credit Cash. 
C) the accountant will debit Wages Expense and credit Cash. 
D) the accountant will debit Cash and credit Wages Expense.

Question 5

Information from the Income Statement columns of the work sheet of Landry Laundry Service is provided below:   
-The entry to close the Cleaning Revenue account is

Accepted Answer

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

Question 6

A work sheet is useful for all except which of the following?

Accepted Answer

A) Preparing financial statements 
B) Recording closing entries 
C) Recording adjusting entries 
D) Recording transactions from source documents 
A) Preparing financial statements 
B) Recording closing entries 
C) Recording adjusting entries 
D) Recording transactions from source documents

Question 7

An important purpose of closing entries is to

Accepted Answer

A) set nominal account balances to zero to begin the next period. 
B) adjust the accounts in the ledger. 
C) help in preparing financial statements. 
D) set real account balances to zero to begin the next period. 
A) set nominal account balances to zero to begin the next period. 
B) adjust the accounts in the ledger. 
C) help in preparing financial statements. 
D) set real account balances to zero to begin the next period.

Question 8

An important purpose of closing entries is to

Accepted Answer

A) help achieve the goals of the matching principle. 
B) set permanent account balances to zero to begin the next period. 
C) update the nominal accounts at year end. 
D) transfer net income or net loss to the owner's Capital account. 
A) help achieve the goals of the matching principle. 
B) set permanent account balances to zero to begin the next period. 
C) update the nominal accounts at year end. 
D) transfer net income or net loss to the owner's Capital account.

Question 9

The post-closing trial balance will typically have more accounts than the adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 10

The information needed to record the adjusting entries can be copied from the work sheet.

Accepted Answer

A) True 
 B)False

Question 11

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 total amount of expenses for the period is

Accepted Answer

A) $500. 
B) $700. 
C) $400. 
D) $100. 
A) $500. 
B) $700. 
C) $400. 
D) $100.

Question 12

The normal account balances for owner's Capital and Withdrawals are

Accepted Answer

A) credit and debit,respectively. 
B) debits. 
C) credits. 
D) debit and credit,respectively. 
A) credit and debit,respectively. 
B) debits. 
C) credits. 
D) debit and credit,respectively.

Question 13

Depreciation Expense-Buildings is a nominal account.

Accepted Answer

A) True 
 B)False

Question 14

In preparing adjustments to the work sheet,which of the following accounts could not be added to the Account Name column?

Accepted Answer

A) Interest Receivable 
B) Notes Payable 
C) Depreciation Expense-Equipment 
D) Interest Income 
A) Interest Receivable 
B) Notes Payable 
C) Depreciation Expense-Equipment 
D) Interest Income

Question 15

On a work sheet,the balance of the owner's Capital account is its ending amount for the period.

Accepted Answer

A) True 
 B)False

Question 16

After all closing entries have been entered and posted,the balance of the Income Summary account will be zero.

Accepted Answer

A) True 
 B)False

Question 17

Discuss reversing entries by addressing each of the following questions:
a.Are reversing entries required?
b.When are reversing entries prepared?
c.Are reversing entries posted to the ledger?
d.What is the purpose of reversing entries?
e.Can all adjusting entries be reversed? If not,which adjusting entries can be reversed?

Accepted Answer

a.Reversing entries are not required,the

Question 18

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 Fran Laurel,Capital balance on 1/1 was

Accepted Answer

A) $2,000. 
B) $1,800. 
C) $2,400. 
D) $2,200. 
A) $2,000. 
B) $1,800. 
C) $2,400. 
D) $2,200.

Question 19

Reversing entries are never required.

Accepted Answer

A) True 
 B)False

Question 20

Accounts Receivable is closed to Income Summary as part of the closing process.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The post-closing trial balance would not include which of the following accounts?

The Trial Balance and Adjusted Trial Balance columns of Kathy's Cleaning Company's work sheet are shown below (the adjustments column has been omitted).In the journal provided,prepare the six adjusting entries and the four closing entries for the month ended June 30,20x5.No explanations are needed.

What two broad purposes do closing entries serve?

An adjusting entry was made on the last day of the previous fiscal year debiting Wages Expense and crediting Wages Payable.If a reversing entry has been made,then at the time of payment

Information from the Income Statement columns of the work sheet of Landry Laundry Service is provided below: -The entry to close the Cleaning Revenue account is

A work sheet is useful for all except which of the following?

An important purpose of closing entries is to

An important purpose of closing entries is to

The post-closing trial balance will typically have more accounts than the adjusted trial balance.

The information needed to record the adjusting entries can be copied from the work sheet.

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 total amount of expenses for the period is

The normal account balances for owner's Capital and Withdrawals are

Depreciation Expense-Buildings is a nominal account.

In preparing adjustments to the work sheet,which of the following accounts could not be added to the Account Name column?

On a work sheet,the balance of the owner's Capital account is its ending amount for the period.

After all closing entries have been entered and posted,the balance of the Income Summary account will be zero.

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 Fran Laurel,Capital balance on 1/1 was

Reversing entries are never required.

Accounts Receivable is closed to Income Summary as part of the closing process.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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