Exam 4: Completing the Accounting Cycle

Closing entries can be prepared by referring solely to the Income Statement columns of the work sheet.

IFRS are important to multinational companies because

The owner's Capital,Withdrawals,and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The total amount of revenue earned for the period is

An important purpose of closing entries is to

After all closing entries have been entered and posted,the balance of the Income Summary account will be zero.

The post-closing trial balance would not include which of the following accounts?

Use the following adjusted trial balance to answer the question below. The amount of net income (or net loss)during the period is

A work sheet is useful for all except which of the following?

The amount placed opposite the owner's Capital account in the Balance Sheet columns of the work sheet is the amount to be reflected for owner's Capital on the balance sheet.

A reversing entry is acceptable for which of the following?

Closing entries result in the transfer of net income or net loss into the owner's Capital account.

A reversing entry would never involve which of the following accounts?

In preparing adjustments on the work sheet,which of the following accounts most likely would be added to the Account Name column?

Working papers provide a written record of the work performed by the accountant or auditor.

Permanent accounts are also known as nominal accounts.

The work sheet is published in the annual report along with the financial statements.

Owner's Capital is closed by transferring the balance to Income Summary.

After all closing entries have been posted,which of the following accounts is most likely to have a nonzero balance?

The heading of a work sheet might contain the line "As of February 28,20x5."

The post-closing trial balance will contain only nominal accounts.