Question 1

In the closing process the balances of the income and expense accounts are closed off to the _______ and _____ summary account.

Accepted Answer

profit,loss

Question 2

If cleaning expenses for the year are $8 200,made up of cash payments of $7 900 and accrued cleaning of $300 what is the amount of cleaning that is closed to the profit and loss summary account?

Accepted Answer

A) Nil 
B) $300 
C) $7 900 
D) $8 200 
A) Nil 
B) $300 
C) $7 900 
D) $8 200 D

Question 3

The accounting entries made to close the temporary accounts are called ___________________ entries.

Accepted Answer

closing

Question 4

Before calculating the profit for the period,the totals of the income statement debit and credit columns on the worksheet are $60 000 and $80 000 respectively.What is the amount of the profit or loss?

Accepted Answer

A) $20 000 profit 
B) $20 000 loss 
C) $80 000 profit 
D) $60 000 loss 
A) $20 000 profit 
B) $20 000 loss 
C) $80 000 profit 
D) $60 000 loss

Question 5

The retained profits balance of Go Company was $50 000 on the first day of the year.Profit during the year was $20 000.Near year-end a $10 000 dividend was declared that is to be paid in the following year.Year-end retained profits are:

Accepted Answer

A) $70 000 
B) $60 000 
C) $50 000 
D) $40 000 
A) $70 000 
B) $60 000 
C) $50 000 
D) $40 000

Question 6

What is the closing entry for drawings of $25 000?

Accepted Answer

A) No closing entry is required 
B) Debit profit and loss summary account $25 000; credit drawings $25 000 
C) Debit bank $25 000; credit drawings $25 000 
D) Debit owner's capital account $25 000; credit drawings $25 000 
A) No closing entry is required 
B) Debit profit and loss summary account $25 000; credit drawings $25 000 
C) Debit bank $25 000; credit drawings $25 000 
D) Debit owner's capital account $25 000; credit drawings $25 000

Question 7

This is Kululu's year-end trial balance: $$\begin{array} { l c } 
& \$ \
\text { Cash } & 50 \
\text { Sales Revenue } & 80 \
\text { Accounts Payable } & 30 \
\text { Equity } & 70 \
\text { Interest Expense } & 60 \
\text { Interest Receivable } & 50 \
\text { Interest Revenue } & 40
\end{array}$$ How many of the above are temporary accounts?

Accepted Answer

A) One 
B) Two 
C) Three 
D) Four 
A) One 
B) Two 
C) Three 
D) Four

Question 8

In a company balance sheet equity is separated into two main categories:

Accepted Answer

A) Share capital and retained profits 
B) Retained profits and reserves 
C) Share capital and dividends 
D) Retained profits and investments 
A) Share capital and retained profits 
B) Retained profits and reserves 
C) Share capital and dividends 
D) Retained profits and investments

Question 9

When closing the accounts of a partnership it is true that:

Accepted Answer

A) Partner's salaries must be treated as drawings because partners are owners 
B) A retained profits account is used rather than a profit and loss summary account 
C) Profit is credited to each partner's capital account according to the profit sharing agreement 
D) A loss for the period is carried forward and is not transferred to the partner's capital accounts 
A) Partner's salaries must be treated as drawings because partners are owners 
B) A retained profits account is used rather than a profit and loss summary account 
C) Profit is credited to each partner's capital account according to the profit sharing agreement 
D) A loss for the period is carried forward and is not transferred to the partner's capital accounts

Question 10

A d_________________ is a distribution of cash by a company to its shareholders.

Accepted Answer

The answer of A d_________________ is a distribution of cash...

Question 11

Balance sheet accounts are known as permanent accounts and income statement accounts are known as t________________ accounts.

Accepted Answer

The answer of Balance sheet accounts are known as permanent...

Question 12

End of year records from Abbi's Boutique show: $$\begin{array} { l r } 
& \$ \
\text { Cash } & 20 \
\text { GST Outlays } & 35 \
\text { Salaries Payable } & 10 \
\text { Rent Expense } & 100 \
\text { Interest Expense } & 50 \
\text { Prepaid Rent } & 30 \
\text { Salary Expense } & 20 \
\text { Rent Collected in Advance } & 20
\end{array}$$ During the closing process the total debit to the Profit and Loss Summary account would be:

Accepted Answer

A) $90 
B) $170 
C) $80 
D) $110 
A) $90 
B) $170 
C) $80 
D) $110

Question 13

Which of these accounts is closed to the profit and loss summary account?

Accepted Answer

A) GST outlays 
B) Depreciation expense 
C) Owner's drawings 
D) Prepaid insurance 
A) GST outlays 
B) Depreciation expense 
C) Owner's drawings 
D) Prepaid insurance

Question 14

The financial statements of sole proprietorships,partnerships and companies are essentially the same except for transactions that directly affect e____________ accounts.

Accepted Answer

The answer of The financial statements of sole proprietorships,partnerships and...

Question 15

Monthly financial statements prepared during the year are called i________________ statements.

Accepted Answer

The answer of Monthly financial statements prepared during the year...

Question 16

The correct closing entry for a profit of $105 300 is:

Accepted Answer

A) No closing entry is required 
B) Debit profit and loss summary account $105 300; credit owner's capital account $105 300 
C) Debit owner's capital account $105 300; credit profit and loss summary account $105 300 
D) Debit owner's capital account $105 300; credit bank $105 300 
A) No closing entry is required 
B) Debit profit and loss summary account $105 300; credit owner's capital account $105 300 
C) Debit owner's capital account $105 300; credit profit and loss summary account $105 300 
D) Debit owner's capital account $105 300; credit bank $105 300

Question 17

Closing the accounts refers to:

Accepted Answer

A) Establishing zero balances in the balance sheet accounts 
B) Establishing a zero balance in the cash at bank account 
C) Establishing zero balances in all ledger accounts 
D) Transferring income and expense account balances to the profit and loss summary account,which is then closed to the equity account 
A) Establishing zero balances in the balance sheet accounts 
B) Establishing a zero balance in the cash at bank account 
C) Establishing zero balances in all ledger accounts 
D) Transferring income and expense account balances to the profit and loss summary account,which is then closed to the equity account

Question 18

Which of these is not a permanent account?

Accepted Answer

A) Prepaid insurance 
B) Rent expense 
C) Loan 
D) Owner's capital account 
A) Prepaid insurance 
B) Rent expense 
C) Loan 
D) Owner's capital account

Question 19

On a worksheet if the opening balance of the salaries expenses account was $7000,a reversing entry for $800 was completed for salaries accrued in the previous year and $600 of salaries were prepaid in the current year the balance of salaries expense transferred to the Income statement column would be:

Accepted Answer

A) $6,800 
B) $7,200 
C) $8,400 
D) $5,600 
A) $6,800 
B) $7,200 
C) $8,400 
D) $5,600

Question 20

The balance in the Profit and Loss Summary account before it is closed represents:

Accepted Answer

A) Total income 
B) Total expense 
C) Profit or loss 
D) Profit or loss less cash drawings 
A) Total income 
B) Total expense 
C) Profit or loss 
D) Profit or loss less cash drawings

Exam 5: Completing the Accounting Cycle

In the closing process the balances of the income and expense accounts are closed off to the _______ and _____ summary account.

If cleaning expenses for the year are $8 200,made up of cash payments of $7 900 and accrued cleaning of $300 what is the amount of cleaning that is closed to the profit and loss summary account?

The accounting entries made to close the temporary accounts are called ___________________ entries.

Before calculating the profit for the period,the totals of the income statement debit and credit columns on the worksheet are $60 000 and $80 000 respectively.What is the amount of the profit or loss?

The retained profits balance of Go Company was $50 000 on the first day of the year.Profit during the year was $20 000.Near year-end a $10 000 dividend was declared that is to be paid in the following year.Year-end retained profits are:

What is the closing entry for drawings of $25 000?

This is Kululu's year-end trial balance: \ Cash 50 Sales Revenue 80 Accounts Payable 30 Equity 70 Interest Expense 60 Interest Receivable 50 Interest Revenue 40 How many of the above are temporary accounts?

In a company balance sheet equity is separated into two main categories:

When closing the accounts of a partnership it is true that:

A d_________________ is a distribution of cash by a company to its shareholders.

Balance sheet accounts are known as permanent accounts and income statement accounts are known as t________________ accounts.

End of year records from Abbi's Boutique show: \ Cash 20 GST Outlays 35 Salaries Payable 10 Rent Expense 100 Interest Expense 50 Prepaid Rent 30 Salary Expense 20 Rent Collected in Advance 20 During the closing process the total debit to the Profit and Loss Summary account would be:

Which of these accounts is closed to the profit and loss summary account?

The financial statements of sole proprietorships,partnerships and companies are essentially the same except for transactions that directly affect e____________ accounts.

Monthly financial statements prepared during the year are called i________________ statements.

The correct closing entry for a profit of $105 300 is:

Closing the accounts refers to:

Which of these is not a permanent account?

The balance in the Profit and Loss Summary account before it is closed represents:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Analysis and Interpretation of Financial Statements

Filters

In the closing process the balances of the income and expense accounts are closed off to the ___ and _ summary account.