Question 1

The major purpose of a post-closing trial balance is to:

Accepted Answer

A) Prepare the accounting reports 
B) Confirm that the ledger is in balance at the start of the new accounting period 
C) Determine if any closing entries have been missed 
D) Determine if any adjusting entries have been missed 
A) Prepare the accounting reports 
B) Confirm that the ledger is in balance at the start of the new accounting period 
C) Determine if any closing entries have been missed 
D) Determine if any adjusting entries have been missed

Question 2

Dividends require two accounting entries,one when the dividend is declared and another when it is paid.What is the correct entry to record the declaration of a cash dividend of 20c a share calculated on 100 000 shares?

Accepted Answer

A) Debit bank $20 000; credit dividend payable $20 000 
B) Debit retained profits $20 000; credit dividend payable $20 000 
C) Debit bank $20 000; credit share capital $20 000 
D) Debit dividend payable $20 000; credit retained profits $20 000 
A) Debit bank $20 000; credit dividend payable $20 000 
B) Debit retained profits $20 000; credit dividend payable $20 000 
C) Debit bank $20 000; credit share capital $20 000 
D) Debit dividend payable $20 000; credit retained profits $20 000

Question 3

After the closing entries have been posted,the t_______________ accounts will have zero balances.

Accepted Answer

The answer of After the closing entries have been posted,the...

Question 4

Which of these is not recorded on a worksheet?

Accepted Answer

A) Closing entries 
B) Drawings 
C) Adjusting entries 
D) Profit for the period 
A) Closing entries 
B) Drawings 
C) Adjusting entries 
D) Profit for the period

Question 5

On 1 January Y Company Pty Ltd issued 100 000 shares for $2 each.The correct entry to record this transaction is:

Accepted Answer

A) Debit bank $200 000; credit shareholder's equity $200 000 
B) Debit bank $200 000; credit share capital $200 000 
C) Debit bank $100 000; credit share capital $100 000 
D) Debit share capital $100 000; credit bank $100 000 
A) Debit bank $200 000; credit shareholder's equity $200 000 
B) Debit bank $200 000; credit share capital $200 000 
C) Debit bank $100 000; credit share capital $100 000 
D) Debit share capital $100 000; credit bank $100 000

Question 6

R__________________ entries are made on the first day of the next financial year to undo the effects of certain adjusting entries.

Accepted Answer

The answer of R__________________ entries are made on the first...

Question 7

The major purpose of a post-closing trial balance is to:

Accepted Answer

A) Verify the worksheet calculations 
B) Determine if any adjusting entries have been omitted 
C) Test for equality of debits and credits in the general ledger to ensure the opening position is correct for the next period 
D) Make sure that all post-closing account balances are equal to the pre-closing account balances 
A) Verify the worksheet calculations 
B) Determine if any adjusting entries have been omitted 
C) Test for equality of debits and credits in the general ledger to ensure the opening position is correct for the next period 
D) Make sure that all post-closing account balances are equal to the pre-closing account balances

Question 8

Which statement relating to closing entries is incorrect?

Accepted Answer

A) The closing process is simple with a computerised accounting system 
B) Closing entries are only made once a year 
C) Closing entries are made each time a trial balance is prepared 
D) The need for closing entries arises from the accounting period assumption 
A) The closing process is simple with a computerised accounting system 
B) Closing entries are only made once a year 
C) Closing entries are made each time a trial balance is prepared 
D) The need for closing entries arises from the accounting period assumption

Question 9

Income and expense accounts can be referred to as:

Accepted Answer

A) Permanent accounts 
B) Real accounts 
C) Temporary accounts 
D) Deferred accounts 
A) Permanent accounts 
B) Real accounts 
C) Temporary accounts 
D) Deferred accounts

Question 10

Interim statements are:

Accepted Answer

A) Summary statements 
B) Prepared by junior staff when the accountant is busy 
C) Prepared between the annual reports,usually half-yearly,quarterly or monthly 
D) Used by creditors to deal with an emergency 
A) Summary statements 
B) Prepared by junior staff when the accountant is busy 
C) Prepared between the annual reports,usually half-yearly,quarterly or monthly 
D) Used by creditors to deal with an emergency

Question 11

In the closing process which accounts are closed?

Accepted Answer

A) All ledger accounts 
B) All asset,liability and equity accounts 
C) All income and expense accounts 
D) All accounts that have been adjusted 
A) All ledger accounts 
B) All asset,liability and equity accounts 
C) All income and expense accounts 
D) All accounts that have been adjusted

Question 12

Accounting entries made to reduce the temporary accounts to zero balances are known as:

Accepted Answer

A) Correcting entries 
B) Adjusting entries 
C) Closing entries 
D) Reversing entries 
A) Correcting entries 
B) Adjusting entries 
C) Closing entries 
D) Reversing entries

Question 13

The post closing trial balance contains only:

Accepted Answer

A) income statement accounts 
B) asset and liability accounts 
C) balance sheet accounts 
D) income and expense accounts. 
A) income statement accounts 
B) asset and liability accounts 
C) balance sheet accounts 
D) income and expense accounts.

Question 14

The post-closing trial balance should contain only b____________ s________ accounts.

Accepted Answer

The answer of The post-closing trial balance should contain only...

Question 15

Closing which of these accounts results in a credit to the Profit and Loss Summary account?

Accepted Answer

A) Sales 
B) Depreciation 
C) Rent Expense 
D) Drawings 
A) Sales 
B) Depreciation 
C) Rent Expense 
D) Drawings

Question 16

Closing entries are made:

Accepted Answer

A) In the ledger only 
B) In the journal and the ledger 
C) In the journal only 
D) On the worksheet 
A) In the ledger only 
B) In the journal and the ledger 
C) In the journal only 
D) On the worksheet

Question 17

If expenses exceed income,before it is closed,the Profit and Loss Summary account will have a debit/credit balance.

Accepted Answer

The answer of If expenses exceed income,before it is closed,the...

Question 18

The statement relating to the Profit and Loss Summary Account that is incorrect is:

Accepted Answer

A) The balance in each income and expense account is transferred to the Profit and Loss Summary Account 
B) The balance in the Profit and Loss Summary Account is transferred to the owner's Capital account 
C) The Profit and Loss Summary Account is established to summarise the balances in the income and expense accounts 
D) The Profit and loss Summary Account is a permanent account 
A) The balance in each income and expense account is transferred to the Profit and Loss Summary Account 
B) The balance in the Profit and Loss Summary Account is transferred to the owner's Capital account 
C) The Profit and Loss Summary Account is established to summarise the balances in the income and expense accounts 
D) The Profit and loss Summary Account is a permanent account

Question 19

The statement relating to reversing entries that is correct is:

Accepted Answer

A) They reverse the effect of credit transactions 
B) They reverse the effect of certain adjusting entries 
C) They reverse the effect of errors 
D) They reverse the effects of closing entries 
A) They reverse the effect of credit transactions 
B) They reverse the effect of certain adjusting entries 
C) They reverse the effect of errors 
D) They reverse the effects of closing entries

Question 20

The statement relating to reversing entries that is correct is:

Accepted Answer

A) Reversing entries are always necessary 
B) There are alternative ways of dealing with the effect of accruals in subsequent periods without using reversing entries. 
C) Reversing entries are never appropriate for deferral type entries 
D) Depreciation is an adjustment that requires reversing in the subsequent period 
A) Reversing entries are always necessary 
B) There are alternative ways of dealing with the effect of accruals in subsequent periods without using reversing entries. 
C) Reversing entries are never appropriate for deferral type entries 
D) Depreciation is an adjustment that requires reversing in the subsequent period

Exam 5: Completing the Accounting Cycle

The major purpose of a post-closing trial balance is to:

Dividends require two accounting entries,one when the dividend is declared and another when it is paid.What is the correct entry to record the declaration of a cash dividend of 20c a share calculated on 100 000 shares?

After the closing entries have been posted,the t_______________ accounts will have zero balances.

Which of these is not recorded on a worksheet?

On 1 January Y Company Pty Ltd issued 100 000 shares for $2 each.The correct entry to record this transaction is:

R__________________ entries are made on the first day of the next financial year to undo the effects of certain adjusting entries.

The major purpose of a post-closing trial balance is to:

Which statement relating to closing entries is incorrect?

Income and expense accounts can be referred to as:

Interim statements are:

In the closing process which accounts are closed?

Accounting entries made to reduce the temporary accounts to zero balances are known as:

The post closing trial balance contains only:

The post-closing trial balance should contain only b____________ s________ accounts.

Closing which of these accounts results in a credit to the Profit and Loss Summary account?

Closing entries are made:

If expenses exceed income,before it is closed,the Profit and Loss Summary account will have a debit/credit balance.

The statement relating to the Profit and Loss Summary Account that is incorrect is:

The statement relating to reversing entries that is correct is:

The statement relating to reversing entries that is correct is:

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

The post-closing trial balance should contain only b____ s accounts.