Question 1

Rank the steps of the accounting cycle in the proper order of preparation.

Accepted Answer

The answer of Rank the steps of the accounting cycle...

Question 2

The adjusted balances for Tomas Co. are listed below.
 Cash, $20,000
Accounts Receivable, $2,500
Prepaid Insurance, $3,500
Equipment, $15,000
Accumulated Depreciation, $2,000
Accounts Payable, $4,000
J.Tomas, Capital, $30,000
J.Tomas, Drawing, $10,000
Income from Services, $35,000
Wages Expense, $12,000
Rent Expense, $8,000
The entry to close revenue would involve a

Accepted Answer

A)  debit to Income Summary, $35,000. 
B)  credit to Income from Services, $35,000 
C)  debit to Income from Services, $35,000. 
D)  None of the answers listed 
A)  debit to Income Summary, $35,000. 
B)  credit to Income from Services, $35,000 
C)  debit to Income from Services, $35,000. 
D)  None of the answers listed

Question 3

If Income Summary has a credit balance after closing revenue and expense accounts, this indicates a net loss.

Accepted Answer

A) True 
 B)False

Question 4

Match the terms that follow with the correct definitions.
-Account that is used to assist in closing temporary-equity accounts

Accepted Answer

A) Interim statements 
B) Closing entries 
C) Expenses 
D) Real or permanent accounts 
E) Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts 
A) Interim statements 
B) Closing entries 
C) Expenses 
D) Real or permanent accounts 
E) Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts

Question 5

Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?

Accepted Answer

A)  Drawing 
B)  Accounts Receivable 
C)  Income from Services 
D)  Supplies Expense 
E)  Wages Expense 
A)  Drawing 
B)  Accounts Receivable 
C)  Income from Services 
D)  Supplies Expense 
E)  Wages Expense

Question 6

The balance of the Drawing account is closed to the Capital account.

Accepted Answer

A) True 
 B)False

Question 7

Revenue and expenses would not appear on a(n)

Accepted Answer

A)  unadjusted trial balance. 
B)  adjusted trial balance. 
C)  income statement. 
D)  work sheet. 
E)  post-closing trial balance. 
A)  unadjusted trial balance. 
B)  adjusted trial balance. 
C)  income statement. 
D)  work sheet. 
E)  post-closing trial balance.

Question 8

The closing process causes the account balance of which account to be zeroed out?

Accepted Answer

A)  Cash 
B)  Account Payable 
C)  Accumulated Depreciation 
D)  R. Carson, Drawing 
A)  Cash 
B)  Account Payable 
C)  Accumulated Depreciation 
D)  R. Carson, Drawing

Question 9

In the closing procedure, the expense account(s) should be closed into the:

Accepted Answer

A)  Income Summary account. 
B)  Net Income account. 
C)  Expense Payable account. 
D)  Drawings Account. 
A)  Income Summary account. 
B)  Net Income account. 
C)  Expense Payable account. 
D)  Drawings Account.

Question 10

Which of the following are all permanent accounts?

Accepted Answer

A)  Cash, Rent Expense, owner's drawing 
B)  Accumulated Depreciation, Notes Payable, owner's drawing 
C)  Cash, Prepaid Insurance, Notes Payable 
D)  Owner's capital, owner's drawing, Rent Expense 
A)  Cash, Rent Expense, owner's drawing 
B)  Accumulated Depreciation, Notes Payable, owner's drawing 
C)  Cash, Prepaid Insurance, Notes Payable 
D)  Owner's capital, owner's drawing, Rent Expense

Question 11

Explain the differences between cash and accrual accounting methods.

Accepted Answer

The cash basis of accounting records rev

Question 12

Match the terms that follow with the correct definitions.
-Account classifications that are closed into the Income Summary account

Accepted Answer

A) Interim statements 
B) Closing entries 
C) Expenses 
D) Real or permanent accounts 
E) Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts 
A) Interim statements 
B) Closing entries 
C) Expenses 
D) Real or permanent accounts 
E) Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts

Question 13

Financial statements prepared during the fiscal year for periods of less than twelve months are called

Accepted Answer

A)  temporary statements. 
B)  internal statements. 
C)  interim statements. 
D)  nominal statements. 
E)  external statements. 
A)  temporary statements. 
B)  internal statements. 
C)  interim statements. 
D)  nominal statements. 
E)  external statements.

Question 14

The Income Summary account balance should always increase after the closing entries are posted at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 15

Match the terms that follow with the correct definitions.
-The debit to Income Summary represents the total

Accepted Answer

A) Interim statements 
B) Closing entries 
C) Expenses 
D) Real or permanent accounts 
E) Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts 
A) Interim statements 
B) Closing entries 
C) Expenses 
D) Real or permanent accounts 
E) Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts

Question 16

The adjusted balances for Tomas Co. are listed below.
 Cash, $20,000
Accounts Receivable, $2,500
Prepaid Insurance, $3,500
Equipment, $15,000
Accumulated Depreciation, $2,000
Accounts Payable, $4,000
J. Tomas, Capital, $30,000
J. Tomas, Drawing, $10,000
Income from Services, $35,000
Wages Expense, $12,000
Rent Expense, $8,000
The entry to close Income Summary would involve a

Accepted Answer

A)  credit to Net Income, $15,000. 
B)  debit to Income Summary, $15,000. 
C)  debit to Net Income, $15,000. 
D)  debit to J. Tomas, Capital, $15,000 
A)  credit to Net Income, $15,000. 
B)  debit to Income Summary, $15,000. 
C)  debit to Net Income, $15,000. 
D)  debit to J. Tomas, Capital, $15,000

Question 17

The entry to close expenses would involve (a)

Accepted Answer

A)  debit to Income Summary 
B)  debit to drawing. 
C)  credit to net income. 
D)  debits to expense accounts. 
A)  debit to Income Summary 
B)  debit to drawing. 
C)  credit to net income. 
D)  debits to expense accounts.

Question 18

The adjusted balances for Windsor Co. are listed below. ​
Cash, $10,000
Accounts Receivable, $1,250
Prepaid Insurance, $1,750
Equipment, $7,500
Accumulated Depreciation, $1,000
Accounts Payable, $2,000
T. Windsor, Capital, $15,000
J. Windsor, Drawing, $5,000
Income from Services, $17,500
Wages Expense, $6,000
Rent Expense, $4,000
​
After recording the closing entries, what would be the balance of the capital account?

Accepted Answer

A)  $35,000 
B)  $12,500 
C)  $17,500 
D)  $10,000 
A)  $35,000 
B)  $12,500 
C)  $17,500 
D)  $10,000

Question 19

The _______________ requires that revenue is recorded when earned and expenses are recorded when incurred.

Accepted Answer

A)  accrual basis of accounting 
B)  cash basis of accounting 
C)  hybrid basis of accounting 
D)  GAAP basis of accounting 
A)  accrual basis of accounting 
B)  cash basis of accounting 
C)  hybrid basis of accounting 
D)  GAAP basis of accounting

Question 20

In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

Accepted Answer

A)  Balance Sheet columns 
B)  Adjusted Trial Balance columns 
C)  Income Statement columns 
D)  Trial Balance columns 
E)  Adjustments columns 
A)  Balance Sheet columns 
B)  Adjusted Trial Balance columns 
C)  Income Statement columns 
D)  Trial Balance columns 
E)  Adjustments columns

Rank the steps of the accounting cycle in the proper order of preparation.

If Income Summary has a credit balance after closing revenue and expense accounts, this indicates a net loss.

Match the terms that follow with the correct definitions. -Account that is used to assist in closing temporary-equity accounts

Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?

The balance of the Drawing account is closed to the Capital account.

Revenue and expenses would not appear on a(n)

The closing process causes the account balance of which account to be zeroed out?

In the closing procedure, the expense account(s) should be closed into the:

Which of the following are all permanent accounts?

Explain the differences between cash and accrual accounting methods.

Match the terms that follow with the correct definitions. -Account classifications that are closed into the Income Summary account

Financial statements prepared during the fiscal year for periods of less than twelve months are called

The Income Summary account balance should always increase after the closing entries are posted at the end of the accounting period.

Match the terms that follow with the correct definitions. -The debit to Income Summary represents the total

The entry to close expenses would involve (a)

The _______________ requires that revenue is recorded when earned and expenses are recorded when incurred.

In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 5: Closing Entries and the Post-Closing Trial Balance

Rank the steps of the accounting cycle in the proper order of preparation.

If Income Summary has a credit balance after closing revenue and expense accounts, this indicates a net loss.

Match the terms that follow with the correct definitions. -Account that is used to assist in closing temporary-equity accounts

Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?

The balance of the Drawing account is closed to the Capital account.

Revenue and expenses would not appear on a(n)

The closing process causes the account balance of which account to be zeroed out?

In the closing procedure, the expense account(s) should be closed into the:

Which of the following are all permanent accounts?

Explain the differences between cash and accrual accounting methods.

Match the terms that follow with the correct definitions. -Account classifications that are closed into the Income Summary account

Financial statements prepared during the fiscal year for periods of less than twelve months are called

The Income Summary account balance should always increase after the closing entries are posted at the end of the accounting period.

Match the terms that follow with the correct definitions. -The debit to Income Summary represents the total

The entry to close expenses would involve (a)

The _______________ requires that revenue is recorded when earned and expenses are recorded when incurred.

In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters