Question 1

Match the terms that follow with the correct definitions.
  
-Accounts that are not closed out at the end of each fiscal year

Accepted Answer

The answer of Match the terms that follow with the...

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

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 4

The purpose of the post-closing trial balance is to make sure the debit balances equal the credit balances before the closing process.

Accepted Answer

A) True 
 B)False

Question 5

Below is an alphabetical list of accounts of Master Cleaners as of December 31, after all adjusting entries have been posted.
   Instructions:
1. Journalize the four closing entries in the proper order.
2. Record the account balances in t-accounts for owner's equity, revenue, and expense accounts. Post the closing entries in these t-accounts using number 1 through 4.
3. Prepare a post-closing trial balance.

Accepted Answer

1.
 @#IMG-DLM& 
2.
E. Hess, Capital
E. Hess, Drawi

Question 6

Which of the following are all temporary accounts?

Accepted Answer

A) Liabilities, revenue, and expenses 
B) Revenue, liabilities, and the owner's Drawing 
C) Assets, liabilities, and owner's Drawing 
D) Revenue, expenses, and the Owner's Drawing 
E) Liabilities and assets 
A) Liabilities, revenue, and expenses 
B) Revenue, liabilities, and the owner's Drawing 
C) Assets, liabilities, and owner's Drawing 
D) Revenue, expenses, and the Owner's Drawing 
E) Liabilities and assets

Question 7

Match the terms that follow with the correct definitions.
  
-Accounts that belong to only one fiscal year and are closed out at the end of each fiscal year

Accepted Answer

The answer of Match the terms that follow with the...

Question 8

What is the first step in the closing process?

Accepted Answer

A) Close the expense accounts to income summary. 
B) Close the Drawing account into the Capital account. 
C) Close the revenue account(s) into Income Summary. 
D) Close the Income Summary account into the Capital account. 
A) Close the expense accounts to income summary. 
B) Close the Drawing account into the Capital account. 
C) Close the revenue account(s) into Income Summary. 
D) Close the Income Summary account into the Capital account.

Question 9

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 10

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 11

The first step in the closing process is to close the _____________ account(s) into the ___________ account(s).

Accepted Answer

A) revenue, net income 
B) income summary, revenue 
C) expense, net income 
D) revenue, income summary 
A) revenue, net income 
B) income summary, revenue 
C) expense, net income 
D) revenue, income summary

Question 12

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

Question 13

Closing entries are posted to the work sheet, but not to the general ledger.

Accepted Answer

A) True 
 B)False

Question 14

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 15

The entry to close Income Summary, assuming a net loss, would involve a

Accepted Answer

A) credit to cash. 
B) debit to net income. 
C) credit to Income Summary. 
D) credit to capital. 
A) credit to cash. 
B) debit to net income. 
C) credit to Income Summary. 
D) credit to capital.

Question 16

Closing entries may be prepared from the ledger or the work sheet.

Accepted Answer

A) True 
 B)False

Question 17

If L. Green's total revenue for the year was $38,000 and total expenses were $30,000, the third closing entry would be

Accepted Answer

A) debit Income Summary; credit L.Green, Capital. 
B) debit L.Green, Capital; credit Income Summary. 
C) debit Income Summary; credit Income from Services. 
D) debit Income from Services; credit Income Summary. 
E) debit L.Green, Capital; credit L.Green, Drawing. 
A) debit Income Summary; credit L.Green, Capital. 
B) debit L.Green, Capital; credit Income Summary. 
C) debit Income Summary; credit Income from Services. 
D) debit Income from Services; credit Income Summary. 
E) debit L.Green, Capital; credit L.Green, Drawing.

Question 18

The balance in the owner's Capital account is closed to the owner's Drawing account.

Accepted Answer

A) True 
 B)False

Question 19

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 the drawing account would involve a

Accepted Answer

A) credit to J.Tomas, Drawing, $10,000. 
B) debit to Income Summary, $10,000. 
C) credit to J.Tomas, Capital, $10,000. 
D) debit to Income from Services, $10,000. 
A) credit to J.Tomas, Drawing, $10,000. 
B) debit to Income Summary, $10,000. 
C) credit to J.Tomas, Capital, $10,000. 
D) debit to Income from Services, $10,000.

Question 20

Boulder Co. uses the accrual basis of accounting. Boulder Co. receives cash from customers in October for services to be performed in December. Which of the following is true?

Accepted Answer

A) Boulder Co.should record revenue in October. 
B) Boulder Co.should record revenue in December. 
C) Boulder Co.should record the receipt of cash in December. 
D) None of the answers listed. 
A) Boulder Co.should record revenue in October. 
B) Boulder Co.should record revenue in December. 
C) Boulder Co.should record the receipt of cash in December. 
D) None of the answers listed.

Match the terms that follow with the correct definitions. -Accounts that are not closed out at the end of each fiscal year

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

The purpose of the post-closing trial balance is to make sure the debit balances equal the credit balances before the closing process.

Which of the following are all temporary accounts?

Match the terms that follow with the correct definitions. -Accounts that belong to only one fiscal year and are closed out at the end of each fiscal year

What is the first step in the closing process?

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

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.

The first step in the closing process is to close the ___ account(s) into the _ account(s).

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

Closing entries are posted to the work sheet, but not to the general ledger.

The entry to close expenses would involve (a)

The entry to close Income Summary, assuming a net loss, would involve a

Closing entries may be prepared from the ledger or the work sheet.

If L. Green's total revenue for the year was $38,000 and total expenses were $30,000, the third closing entry would be

The balance in the owner's Capital account is closed to the owner's Drawing account.

Boulder Co. uses the accrual basis of accounting. Boulder Co. receives cash from customers in October for services to be performed in December. Which of the following is true?

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 and Cash Funds

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

Filters

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

Match the terms that follow with the correct definitions. -Accounts that are not closed out at the end of each fiscal year

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

The purpose of the post-closing trial balance is to make sure the debit balances equal the credit balances before the closing process.

Which of the following are all temporary accounts?

Match the terms that follow with the correct definitions. -Accounts that belong to only one fiscal year and are closed out at the end of each fiscal year

What is the first step in the closing process?

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

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.

The first step in the closing process is to close the _____________ account(s) into the ___________ account(s).

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

Closing entries are posted to the work sheet, but not to the general ledger.

The entry to close expenses would involve (a)

The entry to close Income Summary, assuming a net loss, would involve a

Closing entries may be prepared from the ledger or the work sheet.

If L. Green's total revenue for the year was $38,000 and total expenses were $30,000, the third closing entry would be

The balance in the owner's Capital account is closed to the owner's Drawing account.

Boulder Co. uses the accrual basis of accounting. Boulder Co. receives cash from customers in October for services to be performed in December. Which of the following is true?

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 and Cash Funds

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

Filters

The first step in the closing process is to close the ___ account(s) into the _ account(s).