Question 1

When a firm experiences a net loss, the owner's capital is decreased.

Accepted Answer

A) True 
 B)False

Question 2

When prepaid expense items are initially recorded as assets, the end-of-period adjustments for these items should be reversed.

Accepted Answer

A) True 
 B)False

Question 3

The beginning capital balance shown on a statement of owner's equity is $100,000. Net income for the period is $50,000. The owner withdrew $25,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

Accepted Answer

A)  $175,000. 
B)  $150,000. 
C)  $125,000. 
D)  $100,000. 
A)  $175,000. 
B)  $150,000. 
C)  $125,000. 
D)  $100,000.

Question 4

The adjusted trial balance data given below is from the Hampton Company's worksheet for the year ended December 31, 2014. The firm had net income of $38,000 for the year. Prepare a statement of owner's equity for the year. No additional investments were made during the period. $$\begin{array}{l}
\text { ADJUSTED TRIAL BALANCE }\
\begin{array} { | l | r | r | } 
\hline  { \text { ACCOUNT NAME } } & \text { DEBIT } & { \text { CREDIT } } \
\hline \text { Lloyd Hampton, Capital (Jan. 1) } & & 62,000 \
\hline \text { Lloyd Hampton, Drawing } & 31,500 & \
\hline
\end{array}
\end{array}$$

Accepted Answer

The answer of The adjusted trial balance data given below...

When a firm experiences a net loss, the owner's capital is decreased.

When prepaid expense items are initially recorded as assets, the end-of-period adjustments for these items should be reversed.

The beginning capital balance shown on a statement of owner's equity is $100,000. Net income for the period is $50,000. The owner withdrew $25,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters

Exam 13: Financial Statements and Closing Procedures

When a firm experiences a net loss, the owner's capital is decreased.

When prepaid expense items are initially recorded as assets, the end-of-period adjustments for these items should be reversed.

The beginning capital balance shown on a statement of owner's equity is $100,000. Net income for the period is $50,000. The owner withdrew $25,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters