Question 1

Revenues, expenses, and dividends are called permanent accounts.

Accepted Answer

A) True 
 B)False

Question 2

The account to which revenue and expenses are closed is called __________.

Accepted Answer

The answer of The account to which revenue and expenses...

Question 3

Interest revenue would be an example of a(n) __________.

Accepted Answer

The answer of Interest revenue would be an example of...

Question 4

Data from the adjusted trial balance of The Fireworks Company is provided below.
Required: Prepare the income statement for The Fireworks Company for the month of December 2013. The tax rate is 30%.

Accepted Answer

The answer of Data from the adjusted trial balance of...

Question 5

The total revenues of $6,500, total expenses of $3,500, and dividends of $500 were recorded in the closing entries. Calculate the net change in retained earnings for the month.

Accepted Answer

The answer of The total revenues of $6,500, total expenses...

Question 6

Because inventories are high, Sears should end its fiscal year in either November or December.

Accepted Answer

A) True 
 B)False

Question 7

All financial statements titles must include three title lines. Name the three lines in the order they should appear.

Accepted Answer

The answer of All financial statements titles must include three...

Question 8

Season ticket monies received in advance would be an example of a(n) __________.

Accepted Answer

The answer of Season ticket monies received in advance would...

Question 9

The accounts that are NOT closed are __________.

Accepted Answer

The answer of The accounts that are NOT closed are...

Question 10

Adjusting entries are used to update accounts at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 11

The adjusted trial balance for the accumulated depreciation account:

Accepted Answer

A)  is equal to the unadjusted trial balance total. 
B)  is greater than the unadjusted trial balance total. 
C)  is less than the unadjusted trial balance total. 
D)  has no relationship to the unadjusted trial balance total. 
E)  has no relationship to the trial balance total.

Question 12

The adjusted trial balance is prepared before the adjusting entries are completed and posted.

Accepted Answer

A) True 
 B)False

Question 13

The adjusted trial balance for the supplies account:

Accepted Answer

A)  is equal to the unadjusted trial balance total. 
B)  is greater than the unadjusted trial balance total. 
C)  is less than the unadjusted trial balance total. 
D)  has no relationship to the unadjusted trial balance total. 
E)  has no relationship to the trial balance total.

Question 14

The unadjusted trial balance for prepaid rent shows a $12,000 balance. At the end of the year, $7,000 of the rent had been used. The adjusted trial balance for prepaid rent is a __________.

Accepted Answer

The answer of The unadjusted trial balance for prepaid rent...

Question 15

The difference between the cost of office equipment and accumulated depreciation-office equipment is called __________.

Accepted Answer

The answer of The difference between the cost of office...

Question 16

Unearned subscriptions revenue would be an example of a(n) __________.

Accepted Answer

The answer of Unearned subscriptions revenue would be an example...

Question 17

After preparing the adjusted trial balance, those figures are used to complete the balance sheet only.

Accepted Answer

A) True 
 B)False

Question 18

The type of accounting required by IFRS is:

Accepted Answer

A)  modified cash. 
B)  hybrid cash. 
C)  cash. 
D)  accrual. 
E)  international cash

Question 19

The adjusted trial balance proves that:

Accepted Answer

A)  all adjusting entries have been recorded correctly. 
B)  debit totals equal credit totals. 
C)  no adjusting entry has been entered twice. 
D)  the balance of the adjusted trial balance is correct. 
E)  there are no errors.

Question 20

Journalize the following entries for December 31. Explanations are not required.
a. Wages incurred but not yet paid for $256.
b. Interest earned but not yet received for $190.
c. Depreciation expense on machinery for $388.

Accepted Answer

The answer of Journalize the following entries for December 31....

Exam 3: Adjusting and Closing Entries

Revenues, expenses, and dividends are called permanent accounts.

The account to which revenue and expenses are closed is called __________.

Interest revenue would be an example of a(n) __________.

Data from the adjusted trial balance of The Fireworks Company is provided below. Required: Prepare the income statement for The Fireworks Company for the month of December 2013. The tax rate is 30%.

The total revenues of $6,500, total expenses of $3,500, and dividends of $500 were recorded in the closing entries. Calculate the net change in retained earnings for the month.

Because inventories are high, Sears should end its fiscal year in either November or December.

All financial statements titles must include three title lines. Name the three lines in the order they should appear.

Season ticket monies received in advance would be an example of a(n) __________.

The accounts that are NOT closed are __________.

Adjusting entries are used to update accounts at the end of an accounting period.

The adjusted trial balance for the accumulated depreciation account:

The adjusted trial balance is prepared before the adjusting entries are completed and posted.

The adjusted trial balance for the supplies account:

The unadjusted trial balance for prepaid rent shows a $12,000 balance. At the end of the year, $7,000 of the rent had been used. The adjusted trial balance for prepaid rent is a __________.

The difference between the cost of office equipment and accumulated depreciation-office equipment is called __________.

Unearned subscriptions revenue would be an example of a(n) __________.

After preparing the adjusted trial balance, those figures are used to complete the balance sheet only.

The type of accounting required by IFRS is:

The adjusted trial balance proves that:

Journalize the following entries for December 31. Explanations are not required. a. Wages incurred but not yet paid for $256. b. Interest earned but not yet received for $190. c. Depreciation expense on machinery for $388.