Question 1

If the Income Summary account has a debit balance before it is closed,the firm experienced a net ____________________ from operations.

Accepted Answer

The answer of If the Income Summary account has a...

Question 2

Information in the financial statements provides answers to many questions,including:

Accepted Answer

A)  How much do customers owe the business? 
B)  What are the business' current and long term plans for expansion? 
C)  Has the business achieved its net income goal for the year? 
D)  Has there been a lot of employee turnover? 
A)  How much do customers owe the business? 
B)  What are the business' current and long term plans for expansion? 
C)  Has the business achieved its net income goal for the year? 
D)  Has there been a lot of employee turnover?

Question 3

The entry to close the Income Summary account may include

Accepted Answer

A)  a debit to Income Summary and a credit to the owner's capital account. 
B)  a debit to Income Summary and a credit to Cash. 
C)  a debit to Cash and a credit to Income Summary. 
D)  a debit to Income Summary and a credit to the owner's drawing account. 
A)  a debit to Income Summary and a credit to the owner's capital account. 
B)  a debit to Income Summary and a credit to Cash. 
C)  a debit to Cash and a credit to Income Summary. 
D)  a debit to Income Summary and a credit to the owner's drawing account.

Question 4

The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000.The third closing entry would be

Accepted Answer

A)  debit Capital $11,000;credit Income Summary $11,000. 
B)  debit Income Summary $11,000;credit Capital $11,000. 
C)  debit Revenue $64,000;credit Expenses $53,000. 
D)  debit Income Summary $11,000;credit Drawing $11,000. 
A)  debit Capital $11,000;credit Income Summary $11,000. 
B)  debit Income Summary $11,000;credit Capital $11,000. 
C)  debit Revenue $64,000;credit Expenses $53,000. 
D)  debit Income Summary $11,000;credit Drawing $11,000.

Question 5

In the closing procedure,the ____________________ account balances are transferred to the debit side of the Income Summary account.

Accepted Answer

The answer of In the closing procedure,the ____________________ account balances...

Question 6

After all the closing entries are posted,the ____________________ account reflects the results of operations for the period.

Accepted Answer

The answer of After all the closing entries are posted,the...

Question 7

The entry to close the revenue account,Fees Income,requires a debit to that account.

Accepted Answer

A) True 
 B)False

Question 8

After the closing entries are posted,the balance of the owner's capital account agrees with the amount of owner's equity shown on the balance sheet for the period.

Accepted Answer

A) True 
 B)False

Question 9

On December 31 the Income Summary account of Cook Company has a debit balance of $18,000 after revenue of $49,000 and expenses of $67,000 were closed to the account.Maria Cook,Drawing has a debit balance of $23,000 and Maria Cook,Capital has a credit balance of $84,000.Record the journal entries necessary to complete closing the accounts.Use 22 as the general journal page number.Then,post the closing entries to the Maria Cook,Capital account.

Accepted Answer

The answer of On December 31 the Income Summary account...

Question 10

Which of the following statements is correct?

Accepted Answer

A)  The Balance Sheet section of the worksheet contains the data that is used to make closing entries. 
B)  The balance of the owner's drawing account will appear on the post-closing trial balance. 
C)  Closing entries are entered directly on the worksheet. 
D)  Preparation of the post-closing trial balance is the last step in the end-of-period routine. 
A)  The Balance Sheet section of the worksheet contains the data that is used to make closing entries. 
B)  The balance of the owner's drawing account will appear on the post-closing trial balance. 
C)  Closing entries are entered directly on the worksheet. 
D)  Preparation of the post-closing trial balance is the last step in the end-of-period routine.

Question 11

The entry to close the owner's drawing account would include a debit to the

Accepted Answer

A)  Income Summary account and a credit to the owner's drawing account. 
B)  owner's drawing account and a credit to Cash. 
C)  owner's capital account and a credit to the owner's drawing account. 
D)  owner's drawing account and a credit to the Income Summary account. 
A)  Income Summary account and a credit to the owner's drawing account. 
B)  owner's drawing account and a credit to Cash. 
C)  owner's capital account and a credit to the owner's drawing account. 
D)  owner's drawing account and a credit to the Income Summary account.

Question 12

After the closing entries are posted to the ledger,each revenue account will have

Accepted Answer

A)  a zero balance. 
B)  a debit balance. 
C)  a credit balance. 
D)  either a debit or a credit balance. 
A)  a zero balance. 
B)  a debit balance. 
C)  a credit balance. 
D)  either a debit or a credit balance.

Question 13

Withdrawals by the owner for personal use do not affect net income or net loss of the business.

Accepted Answer

A) True 
 B)False

Question 14

The ____________________ entries reduce the balances of the revenue,expense,and drawing accounts to zero so that they are ready to receive data for the next period.

Accepted Answer

The answer of The ____________________ entries reduce the balances of...

Question 15

Which of the following accounts is a permanent account?

Accepted Answer

A)  Supplies 
B)  Supplies Expense 
C)  Owner's drawing 
D)  Fees Income 
A)  Supplies 
B)  Supplies Expense 
C)  Owner's drawing 
D)  Fees Income

Question 16

The asset,liability,and owner's capital accounts appear on all of the following except the

Accepted Answer

A)  income statement. 
B)  balance sheet. 
C)  post-closing trial balance. 
D)  worksheet. 
A)  income statement. 
B)  balance sheet. 
C)  post-closing trial balance. 
D)  worksheet.

Question 17

The post-closing trial balance lists only the asset,____________________,and owner's capital accounts.

Accepted Answer

The answer of The post-closing trial balance lists only the...

Question 18

After the closing entries are posted to the ledger,each expense account will have

Accepted Answer

A)  a debit balance. 
B)  a credit balance. 
C)  a negative balance. 
D)  a zero balance. 
A)  a debit balance. 
B)  a credit balance. 
C)  a negative balance. 
D)  a zero balance.

Question 19

The entry to close an expense account requires a credit to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 20

The final closing entry transfers the balance of the ____________________ account to the owner's capital account.

Accepted Answer

The answer of The final closing entry transfers the balance...

Exam 6: Closing Entries and the Postclosing Trial Balance

If the Income Summary account has a debit balance before it is closed,the firm experienced a net ____________________ from operations.

Information in the financial statements provides answers to many questions,including:

The entry to close the Income Summary account may include

The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000.The third closing entry would be

In the closing procedure,the ____________________ account balances are transferred to the debit side of the Income Summary account.

After all the closing entries are posted,the ____________________ account reflects the results of operations for the period.

The entry to close the revenue account,Fees Income,requires a debit to that account.

After the closing entries are posted,the balance of the owner's capital account agrees with the amount of owner's equity shown on the balance sheet for the period.

Which of the following statements is correct?

The entry to close the owner's drawing account would include a debit to the

After the closing entries are posted to the ledger,each revenue account will have

Withdrawals by the owner for personal use do not affect net income or net loss of the business.

The ____________________ entries reduce the balances of the revenue,expense,and drawing accounts to zero so that they are ready to receive data for the next period.

Which of the following accounts is a permanent account?

The asset,liability,and owner's capital accounts appear on all of the following except the

The post-closing trial balance lists only the asset,____________________,and owner's capital accounts.

After the closing entries are posted to the ledger,each expense account will have

The entry to close an expense account requires a credit to the Income Summary account.

The final closing entry transfers the balance of the ____________________ account to the owner's capital account.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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