Question 1

List and explain at least two advantages and disadvantages of a computerized accounting system.

Accepted Answer

Advantages: Automatic-automatical

Question 2

Which of the following accounts would be shown on the post-closing trial balance?

Accepted Answer

A)  owner's drawing 
B)  Rent Expense 
C)  Accumulated Depreciation 
D)  All of the accounts listed would be shown. 
A)  owner's drawing 
B)  Rent Expense 
C)  Accumulated Depreciation 
D)  All of the accounts listed would be shown.

Question 3

Which of the following statements is true concerning the steps in the accounting cycle?

Accepted Answer

A)  Preparing a trial balance should be completed before recording business transactions into a journal. 
B)  Journalizing and posting the closing entries should be completed after preparing financial statements. 
C)  Completing the work sheet should be completed after preparing the financial statements. 
D)  Preparing a post-closing trial balance should be completed before completing the work sheet. 
A)  Preparing a trial balance should be completed before recording business transactions into a journal. 
B)  Journalizing and posting the closing entries should be completed after preparing financial statements. 
C)  Completing the work sheet should be completed after preparing the financial statements. 
D)  Preparing a post-closing trial balance should be completed before completing the work sheet.

Question 4

The first step in the closing entries is to close the revenue account(s) into the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 5

A post-closing trial balance will include only permanent accounts.

Accepted Answer

A) True 
 B)False

Question 6

If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.

Accepted Answer

A) True 
 B)False

Question 7

If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.

Accepted Answer

A) True 
 B)False

Question 8

If expenses are greater than revenue, the Income Summary account will be closed by a debit to

Accepted Answer

A)  Cash and a credit to Income Summary. 
B)  Income Summary and a credit to Cash. 
C)  Capital and a credit to Income Summary. 
D)  Income Summary and a credit to Capital. 
E)  Income Summary and a credit to Drawing. 
A)  Cash and a credit to Income Summary. 
B)  Income Summary and a credit to Cash. 
C)  Capital and a credit to Income Summary. 
D)  Income Summary and a credit to Capital. 
E)  Income Summary and a credit to Drawing.

Question 9

The owner's Capital account will always have a zero balance after the closing entries are posted.

Accepted Answer

A) True 
 B)False

Question 10

When using the work sheet to prepare closing entries, which of the following statement is correct?

Accepted Answer

A)  You should use all balances listed in the balance sheet columns. 
B)  You should use all balances listed in the balance sheet columns and the income statement columns. 
C)  You should use all balances listed in the income statement columns. 
D)  None of the answers listed 
A)  You should use all balances listed in the balance sheet columns. 
B)  You should use all balances listed in the balance sheet columns and the income statement columns. 
C)  You should use all balances listed in the income statement columns. 
D)  None of the answers listed

Question 11

Entries required to clear or zero the balances of temporary accounts at the end of the year are called ____________ entries.

Accepted Answer

A)  adjusting 
B)  journal 
C)  closing 
D)  clearing 
A)  adjusting 
B)  journal 
C)  closing 
D)  clearing

Question 12

___________ are prepared during the fiscal year and cover a period of time less than twelve months.

Accepted Answer

A)  Fiscal statements 
B)  Annual statements 
C)  Interim statements 
D)  Closing statements 
A)  Fiscal statements 
B)  Annual statements 
C)  Interim statements 
D)  Closing statements

Question 13

How would the company's books be affected if the company's accountant failed to make any closing entries?

Accepted Answer

If closing entries were not made, after

Question 14

Match the terms that follow with the correct definitions.
-Financial statements prepared during the fiscal year for a period of less than twelve months

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 15

Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using?

Accepted Answer

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

Question 16

The December 31 year-end ledger balances for Quick Delivery are presented below.
Instructions:
Journalize the four closing entries in the proper order in the general journal.

Accepted Answer

The answer of The December 31 year-end ledger balances for...

Question 17

Which of the following can be prepared by taking the account balances from the general ledger after closing?

Accepted Answer

A)  Income statement 
B)  Post-closing trial balance 
C)  Balance sheet 
D)  Statement of owner's equity 
E)  Adjusted trial balance 
A)  Income statement 
B)  Post-closing trial balance 
C)  Balance sheet 
D)  Statement of owner's equity 
E)  Adjusted trial balance

Question 18

Which of the following account(s) would remain open after closing entries?

Accepted Answer

A)  Accounts Payable 
B)  Equipment 
C)  Owner's capital 
D)  All of the answers listed 
A)  Accounts Payable 
B)  Equipment 
C)  Owner's capital 
D)  All of the answers listed

Question 19

The post-closing trial balance contains only asset, liability, and revenue accounts.

Accepted Answer

A) True 
 B)False

Question 20

The Income Summary account has a debit balance of $10,000 prior to closing. The owner's Drawing account has a balance of $7,000 before closing. The owner's Capital account will

Accepted Answer

A)  decrease $10,000. 
B)  increase $17,000. 
C)  increase $10,000. 
D)  decrease $17,000. 
E)  increase $7,000. 
A)  decrease $10,000. 
B)  increase $17,000. 
C)  increase $10,000. 
D)  decrease $17,000. 
E)  increase $7,000.

List and explain at least two advantages and disadvantages of a computerized accounting system.

Which of the following accounts would be shown on the post-closing trial balance?

Which of the following statements is true concerning the steps in the accounting cycle?

The first step in the closing entries is to close the revenue account(s) into the Income Summary account.

A post-closing trial balance will include only permanent accounts.

If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.

If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.

If expenses are greater than revenue, the Income Summary account will be closed by a debit to

The owner's Capital account will always have a zero balance after the closing entries are posted.

When using the work sheet to prepare closing entries, which of the following statement is correct?

Entries required to clear or zero the balances of temporary accounts at the end of the year are called ____________ entries.

___________ are prepared during the fiscal year and cover a period of time less than twelve months.

How would the company's books be affected if the company's accountant failed to make any closing entries?

Match the terms that follow with the correct definitions. -Financial statements prepared during the fiscal year for a period of less than twelve months

Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using?

The December 31 year-end ledger balances for Quick Delivery are presented below. Instructions: Journalize the four closing entries in the proper order in the general journal.

Which of the following can be prepared by taking the account balances from the general ledger after closing?

Which of the following account(s) would remain open after closing entries?

The post-closing trial balance contains only asset, liability, and revenue accounts.

The Income Summary account has a debit balance of $10,000 prior to closing. The owner's Drawing account has a balance of $7,000 before closing. The owner's Capital account will

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

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

List and explain at least two advantages and disadvantages of a computerized accounting system.

Which of the following accounts would be shown on the post-closing trial balance?

Which of the following statements is true concerning the steps in the accounting cycle?

The first step in the closing entries is to close the revenue account(s) into the Income Summary account.

A post-closing trial balance will include only permanent accounts.

If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.

If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.

If expenses are greater than revenue, the Income Summary account will be closed by a debit to

The owner's Capital account will always have a zero balance after the closing entries are posted.

When using the work sheet to prepare closing entries, which of the following statement is correct?

Entries required to clear or zero the balances of temporary accounts at the end of the year are called ____________ entries.

___________ are prepared during the fiscal year and cover a period of time less than twelve months.

How would the company's books be affected if the company's accountant failed to make any closing entries?

Match the terms that follow with the correct definitions. -Financial statements prepared during the fiscal year for a period of less than twelve months

Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using?

The December 31 year-end ledger balances for Quick Delivery are presented below. Instructions: Journalize the four closing entries in the proper order in the general journal.

Which of the following can be prepared by taking the account balances from the general ledger after closing?

Which of the following account(s) would remain open after closing entries?

The post-closing trial balance contains only asset, liability, and revenue accounts.

The Income Summary account has a debit balance of $10,000 prior to closing. The owner's Drawing account has a balance of $7,000 before closing. The owner's Capital account will

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