Deck 5: End-Of-Period Procedures Including Adjusting Entries, Owner Withdrawals and Investments, and Closing Entries

Question 1

QuickBooks Online follows the same closing process as manual accounting.

Answer 1

False

Question 2

The report that proves that Assets = Liabilities + Equity is the report.

A)Profit and Loss
B)Statement of Cash Flows
C)Balance Sheet
D)Trial Balance

Answer 2

C

Question 3

To close income and expense accounts, you enter a closing date in QuickBooks Online.

Answer 3

True

Question 4

Additional investments in the business may be cash or non-cash investments.

Question 5

An entry to must be recorded at the end of the year.

A)Transfer Net Income into the Owner's Capital account
B)Transfer Net Income into the Checking account
C)Close the adjusting entries for prepaid expenses
D)Write a check to the owner for the amount of Net Income

Question 6

QuickBooks Online automatically transfers Net Income into Retained Earnings at the end of the year.

Question 7

Adjusting entries are prepared for .

A)Prepaid Expenses
B)Depreciation
C)Drawing
D)Both A and B

Question 8

QuickBooks Online uses the cash-basis of accounting by default.

Question 9

When an owner works in a business, payment for the work is made by .

A)Creating a Paycheck
B)An Owner Withdrawal
C)A contribution to a Special Fund
D)Adding the time as an investment in the business

Question 10

When the Checking account and the bank account are reconciled, are recorded into the Checking account.

A)Service Charges
B)Automatic Payments
C)Interest Earned on the account
D)All of the above