Question 1

Why will the Income Summary account never appear on any financial statement?

Accepted Answer

The Income Summary account beg

Question 2

Below are the adjusted accounts of Sterling Company for the month ended May 31,20x5,listed in alphabetical order:
 
In the journal provided,prepare Sterling's closing entries.Omit explanations

Accepted Answer

The answer of Below are the adjusted accounts of Sterling...

Question 3

Supplies Expense is a temporary account.

Accepted Answer

A) True 
 B)False

Question 4

A temporary account is also known as a nominal account.

Accepted Answer

A) True 
 B)False

Question 5

The owner's Capital,Withdrawals,and Income Summary accounts for Rick's Repair Shop for the accounting period are presented below in T account form after the recording and posting of closing entries.
  From the T accounts,determine the following:
a.Total revenue for the period
b.Net income (or net loss)
c.Total withdrawals for the period
d.Ending balance of Rick Barton,Capital

Accepted Answer

a.$900
b.(

Question 6

Adele Connor is the manager of Midland Standard Equipment Company.Adele does not have an accounting degree nor a strong background in accounting.Describe to Adele how the work sheet and closing entries assist her in managing Midland Standard Equipment Company.

Accepted Answer

Preparation of the work sheet and record

Question 7

Which of the following accounts is not found in closing entries?

Accepted Answer

A) Accumulated Depreciation-Equipment 
B) Owner's Capital 
C) Income Summary 
D) Withdrawals 
A) Accumulated Depreciation-Equipment 
B) Owner's Capital 
C) Income Summary 
D) Withdrawals

Question 8

The entry to close the Withdrawals account is

Accepted Answer

A) debit owner's Capital and credit Withdrawals. 
B) debit Withdrawals and credit owner's Capital. 
C) debit Income Summary and credit Withdrawals. 
D) debit Withdrawals and credit Income Summary. 
A) debit owner's Capital and credit Withdrawals. 
B) debit Withdrawals and credit owner's Capital. 
C) debit Income Summary and credit Withdrawals. 
D) debit Withdrawals and credit Income Summary.

Question 9

Using the information below from the Income Statement and Balance Sheet columns of Mesquite Company's work sheet for the month ended April 30,20x5,prepare the income statement,statement of owner's equity,and balance sheet.

Accepted Answer

The answer of Using the information below from the Income...

Question 10

Preparing the work sheet and closing entries

Accepted Answer

A) saves money. 
B) prevents mistakes. 
C) provides a mechanism for applying the periodicity concept. 
D) All of these choices. 
A) saves money. 
B) prevents mistakes. 
C) provides a mechanism for applying the periodicity concept. 
D) All of these choices.

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 Bill Harmon,Capital balance on 1/1 was

Accepted Answer

A) $300. 
B) $800. 
C) $700. 
D) $1,500. 
A) $300. 
B) $800. 
C) $700. 
D) $1,500.

Question 12

On the work sheet,under what circumstances will the last two columns be in balance after the initial footing?

Accepted Answer

A) Under all circumstances,assuming no arithmetical errors have been made 
B) When net income is zero 
C) When no adjustments have been entered on the work sheet 
D) Under no circumstances 
A) Under all circumstances,assuming no arithmetical errors have been made 
B) When net income is zero 
C) When no adjustments have been entered on the work sheet 
D) Under no circumstances

Question 13

On the work sheet,account balances are "extended" from the

Accepted Answer

A) Adjusted Trial Balance columns to the Income Statement or Balance Sheet columns. 
B) Income Statement and Balance Sheet columns to the financial statements. 
C) Trial Balance and Adjustments columns to the Adjusted Trial Balance columns. 
D) Trial Balance columns to the Adjusted Trial Balance columns. 
A) Adjusted Trial Balance columns to the Income Statement or Balance Sheet columns. 
B) Income Statement and Balance Sheet columns to the financial statements. 
C) Trial Balance and Adjustments columns to the Adjusted Trial Balance columns. 
D) Trial Balance columns to the Adjusted Trial Balance columns.

Question 14

The Balance Sheet columns of the work sheet show one account that needs to be closed.

Accepted Answer

A) True 
 B)False

Question 15

Discuss a worksheet by answering the following questions:
a.Why is the preparation of a worksheet not required?
b.When a worksheet is used,does a trial balance have to be prepared? Why or why not?
c.If the Income Statement and Balance Sheet columns balance,is this proof that the financial statements are correct? Why or why not?

Accepted Answer

a.A worksheet is not required because it

Question 16

An adjusting entry was made on the last day of the previous fiscal year debiting Accounts Receivable and crediting Service Revenue.If a reversing entry has been made,then at the time of cash collection

Accepted Answer

A) the accountant needs to find out how much of the cash collection applies to the current period and how much applies to the previous period. 
B) the accountant will debit Accounts Receivable and credit Service Revenue. 
C) the accountant will debit Cash and credit Service Revenue. 
D) the accountant will debit Service Revenue and credit Cash. 
A) the accountant needs to find out how much of the cash collection applies to the current period and how much applies to the previous period. 
B) the accountant will debit Accounts Receivable and credit Service Revenue. 
C) the accountant will debit Cash and credit Service Revenue. 
D) the accountant will debit Service Revenue and credit Cash.

Question 17

Closing entries are important to managing a business because

Accepted Answer

A) the owners expect periodic reports of the progress of the business. 
B) management needs to prepare budgets for future time periods. 
C) to assess progress toward goals,managers need to divide the life of the business into relatively short time periods. 
D) All of these choices. 
A) the owners expect periodic reports of the progress of the business. 
B) management needs to prepare budgets for future time periods. 
C) to assess progress toward goals,managers need to divide the life of the business into relatively short time periods. 
D) All of these choices.

Question 18

Which of the following accounts is not closed?

Accepted Answer

A) Income Summary 
B) Withdrawals 
C) Owner's Capital 
D) Interest Income 
A) Income Summary 
B) Withdrawals 
C) Owner's Capital 
D) Interest Income

Question 19

Which of the following items is associated with the purpose of the closing entries?

Accepted Answer

A) Recording adjusting entries. 
B) Preparing financial statements. 
C) Preparing budgets. 
D) Recording closing entries. 
A) Recording adjusting entries. 
B) Preparing financial statements. 
C) Preparing budgets. 
D) Recording closing entries.

Exam 4: Completing the Accounting Cycle

Why will the Income Summary account never appear on any financial statement?

Below are the adjusted accounts of Sterling Company for the month ended May 31,20x5,listed in alphabetical order: In the journal provided,prepare Sterling's closing entries.Omit explanations

Supplies Expense is a temporary account.

A temporary account is also known as a nominal account.

Adele Connor is the manager of Midland Standard Equipment Company.Adele does not have an accounting degree nor a strong background in accounting.Describe to Adele how the work sheet and closing entries assist her in managing Midland Standard Equipment Company.

Which of the following accounts is not found in closing entries?

The entry to close the Withdrawals account is

Using the information below from the Income Statement and Balance Sheet columns of Mesquite Company's work sheet for the month ended April 30,20x5,prepare the income statement,statement of owner's equity,and balance sheet.

Preparing the work sheet and closing entries

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 Bill Harmon,Capital balance on 1/1 was

On the work sheet,under what circumstances will the last two columns be in balance after the initial footing?

On the work sheet,account balances are "extended" from the

The Balance Sheet columns of the work sheet show one account that needs to be closed.

An adjusting entry was made on the last day of the previous fiscal year debiting Accounts Receivable and crediting Service Revenue.If a reversing entry has been made,then at the time of cash collection

Closing entries are important to managing a business because

Which of the following accounts is not closed?

Which of the following items is associated with the purpose of the closing entries?

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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