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

Match the correct definitions below with the terms .

List of the final balances of the general ledger after end-of-year procedures

Interim statements

Process in which preparing the post-closing trial balance is the last step

Closing entries

Accounts that belong to only one fiscal year and are closed out at the end of each fiscal year

Expenses

Correct Answer:

Verified

List of the final balances of the general ledger after end-of-year procedures

Process in which preparing the post-closing trial balance is the last step

Accounts that belong to only one fiscal year and are closed out at the end of each fiscal year

The account used to record amounts taken out of the business by the owner

Account classifications that are closed into the Income Summary account

The debit to Income Summary represents the total

Accounts that are not closed out at the end of each fiscal year

Financial statements prepared during the fiscal year for a period of less than twelve months

Clearing the accounts or bringing to zero balance

Account that is used to assist in closing temporary-equity accounts

(Matching)

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Question 101

Classify the following accounts as real (permanent) or nominal (temporary), and indicate with an X whether the account is closed. Also, indicate the financial statement in which each account will appear. The Accounts Payable account is given as an example.

(Essay)

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Question 102

The last step in the accounting cycle is to

(Multiple Choice)

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Question 103

Baker Co. uses the accrual basis of accounting. Baker Co. prepays cash in May for insurance that covers only the month of June. Which of the following statements is true?

(Multiple Choice)

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Question 104

The post-closing trial balance is best prepared from the

(Multiple Choice)

4.8/5

(39)

Question 105

Classify the following accounts as real (permanent) or nominal (temporary), and indicate with an X whether the account is closed. Also, indicate the financial statement in which each account will appear. The Accounts Payable account is given as an example.

The last step in the accounting cycle is to

Baker Co. uses the accrual basis of accounting. Baker Co. prepays cash in May for insurance that covers only the month of June. Which of the following statements is true?

The post-closing trial balance is best prepared from the

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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