Deck 5: General Accounting and End-Of-Period Procedures

Question 1

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

Answer 1

A

Question 2

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

Answer 2

True

Question 3

Reconciling a bank statement can help in finding the following types of errors recorded in the Checking account: .

A)A transaction that was recorded twice
B)A transaction that was recorded backwards
C)Transposition errors
D)All of these can be found with a reconciliation

Answer 3

D

Question 4

Adjusting entries are prepared for .

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

Question 5

When an owner works in a business, payment for services 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 6

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

Question 7

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

Question 8

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 the above

Question 9

There are three tabs available on the Reconcile Checking window: Receipts, Disbursements, and All.

Question 10

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