Question 1

The income statement debit column of the worksheet showed the following expenses:
  Supplies Expense $600 Depreciation Expense 400 Salaries Expense 300\begin{array}{|l|r|}\hline	ext { Supplies Expense } & \$ 600 \\hline 	ext { Depreciation Expense } & 400 \\hline 	ext { Salaries Expense } & 300 \\hline\end{array} Supplies Expense  Depreciation Expense  Salaries Expense ​$600400300​​ 
The journal entry to close the expense accounts is:

Accepted Answer

A)    Income Summary 1,300 Supplies Expense 600 Depreciation Expense 400 Salaries Expense 300\begin{array}{|l|l|}\hline 	ext { Income Summary } & 1,300 \\hline 	ext { Supplies Expense } & 600 \\hline 	ext { Depreciation Expense } & 400 \\hline 	ext { Salaries Expense } &300\\hline\end{array} Income Summary  Supplies Expense  Depreciation Expense  Salaries Expense ​1,300600400300​​ 
B)  
C)  
D)    Capital 1,200 Income Summary 1,200\begin{array}{|l|l|}\hline	ext { Capital } & 1,200 \\hline 	ext { Income Summary } & 1,200\\hline\end{array} Capital  Income Summary ​1,2001,200​​

Question 2

A real account is the same as a permanent account.

Accepted Answer

A) True 
 B)False

Question 3

In the normal accounting cycle the:

Accepted Answer

A)  financial statements are prepared after the adjusting entries are posted.
B)  financial statements are prepared before the adjusting entries are posted.
C)  adjusting and closing entries are journalized before the financial statements are prepared.
D)  post-closing trial balance is prepared before the closing entries are posted.

Question 4

For each of the following,identify in Column 1 the category to which the account belongs,in Column 2 the normal balance for the account,in Column 3 the financial statement on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary).
Example:
 $$\begin{array} { | l | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { asset } & \text { debit } & \text { palance sheet } & \text { permanent } \
\hline
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \
\hline \text { Capital } & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following,identify in Column...

Question 5

Adjusting journal entries:

Accepted Answer

A)  need not be journalized since they appear on the worksheet.
B)  need not be posted if the financial statements are prepared from the worksheet.
C)  are not needed if closing entries are prepared.
D)  must be journalized and posted.

Question 6

The beginning capital balance is $1,000;there are no additional investments or withdrawals by the owner during the accounting period.The period's revenue is $600 and expenses total $550.What is the ending capital balance (after closing entries) ?

Accepted Answer

A)  $1,050
B)  $1,500
C)  $1,450
D)  $50

Question 7

The entry to close Income Summary (net loss) was entered in reverse-Income Summary was debited and Capital was credited.This error will cause:

Accepted Answer

A)  Income Summary to have a credit balance.
B)  Income Summary to have a debit balance.
C)  the assets to be overstated.
D)  the liabilities to be understated.

Question 8

To close the Withdrawals account:

Accepted Answer

A)  debit Withdrawals;credit Revenue.
B)  debit Capital;credit Withdrawals.
C)  debit Withdrawals;credit Income Summary.
D)  debit Income Summary;credit Withdrawals.

Question 9

Determine the ending owner's equity of a business having a beginning owner's equity of $3,200,withdrawals of $2,000,and after closing the revenues and expenses Income Summary has a credit balance of $5,250.
$ ________

Accepted Answer

$6,450 [$3...

Question 10

When the balance in the Income Summary account is a debit,the company has:

Accepted Answer

A)  incurred a net loss.
B)  incurred a net income.
C)  had more revenue than expenses.
D)  made an error in their closing entries.

Question 11

When the expenses are closed:

Accepted Answer

A)  Owner's Capital will be debited.
B)  Income Summary will be debited.
C)  Income Summary will be credited.
D)  None of these is correct.

Question 12

When Income Summary has a credit balance and the account is closed:

Accepted Answer

A)  Capital is decreased.
B)  Capital is increased.
C)  Withdrawals is increased.
D)  Revenue is increased.

Question 13

Of the following accounts,which might appear in the adjusted trial balance,but not in the post-closing trial balance?

Accepted Answer

A)  Salary Expense
B)  Owner's Capital
C)  Accounts Payable
D)  Income Summary

Question 14

Which of the following accounts is a temporary account?

Accepted Answer

A)  Withdrawals
B)  Accounts Receivable
C)  Cash
D)  Accounts Payable

Question 15

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

Accepted Answer

A)  The company had a net income.
B)  The owner invested an additional amount.
C)  The owner made a withdrawal.
D)  All of these answers are correct.

Question 16

Income Summary:

Accepted Answer

A)  is a temporary account.
B)  is a permanent account.
C)  summarizes revenues and expenses and transfers the balance to Capital.
D)  Both A and C are correct.

Question 17

There are 7 closing entries.

Accepted Answer

A) True 
 B)False

Question 18

A real account is the same as a nominal account.

Accepted Answer

A) True 
 B)False

Question 19

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following accounts would appear on the post-closing trial balance?

Accepted Answer

A)  Fees Earned
B)  Rent Expense
C)  Accounts Receivable
D)  Income Summary

Exam 5: The Accounting Cycle Completed

Of the following accounts,which might appear in the adjusted trial balance,but not in the post-closing trial balance?

Correct Answer
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The entry to close Income Summary (net loss) was entered in reverse-Income Summary was debited and Capital was credited.This error will cause:

Correct Answer
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Correct Answer
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Determine the ending owner's equity of a business having a beginning owner's equity of $3,200,withdrawals of $2,000,and after closing the revenues and expenses Income Summary has a credit balance of $5,250. $ ________

Correct Answer
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$6,450 [$3...
View Answer

In the normal accounting cycle the:

Correct Answer
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When Income Summary has a credit balance and the account is closed:

Correct Answer
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A real account is the same as a permanent account.

Correct Answer
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Correct Answer
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Real accounts are those accounts with balances that are brought forward to the next accounting period.

Correct Answer
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After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

Correct Answer
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To close the Withdrawals account:

Correct Answer
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A real account is the same as a nominal account.

Correct Answer
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Which of the following accounts is a temporary account?

Correct Answer
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There are 7 closing entries.

Correct Answer
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Income Summary:

Correct Answer
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The beginning capital balance is $1,000;there are no additional investments or withdrawals by the owner during the accounting period.The period's revenue is $600 and expenses total $550.What is the ending capital balance (after closing entries) ?

Correct Answer
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When the expenses are closed:

Correct Answer
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Which of the following accounts would appear on the post-closing trial balance?

Correct Answer
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Adjusting journal entries:

Correct Answer
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When the balance in the Income Summary account is a debit,the company has:

Correct Answer
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Exam 5: The Accounting Cycle Completed

Of the following accounts,which might appear in the adjusted trial balance,but not in the post-closing trial balance?

Correct AnswerverifiedShow Answer

The entry to close Income Summary (net loss) was entered in reverse-Income Summary was debited and Capital was credited.This error will cause:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Determine the ending owner's equity of a business having a beginning owner's equity of $3,200,withdrawals of $2,000,and after closing the revenues and expenses Income Summary has a credit balance of $5,250. $ ________

Correct Answerverified$6,450 [$3...View AnswerShow Answer

In the normal accounting cycle the:

Correct AnswerverifiedShow Answer

When Income Summary has a credit balance and the account is closed:

Correct AnswerverifiedShow Answer

A real account is the same as a permanent account.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Correct AnswerverifiedShow Answer

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

Correct AnswerverifiedShow Answer

To close the Withdrawals account:

Correct AnswerverifiedShow Answer

A real account is the same as a nominal account.

Correct AnswerverifiedShow Answer

Which of the following accounts is a temporary account?

Correct AnswerverifiedShow Answer

There are 7 closing entries.

Correct AnswerverifiedShow Answer

Income Summary:

Correct AnswerverifiedShow Answer

The beginning capital balance is $1,000;there are no additional investments or withdrawals by the owner during the accounting period.The period's revenue is $600 and expenses total $550.What is the ending capital balance (after closing entries) ?

Correct AnswerverifiedShow Answer

When the expenses are closed:

Correct AnswerverifiedShow Answer

Which of the following accounts would appear on the post-closing trial balance?

Correct AnswerverifiedShow Answer

Adjusting journal entries:

Correct AnswerverifiedShow Answer

When the balance in the Income Summary account is a debit,the company has:

Correct AnswerverifiedShow Answer

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$6,450 [$3...
View Answer

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