Question 1

Which of the following accounts will NOT appear on the post-closing trial balance?

Accepted Answer

A) Wages Expense 
B) Equipment 
C) Wages Payable 
D) Prepaid Advertising 
A) Wages Expense 
B) Equipment 
C) Wages Payable 
D) Prepaid Advertising

Question 2

Which of the following statements is correct?

Accepted Answer

A) The term single-step income statement is sometimes used to describe a classified income statement. 
B) Salaries of office employees would be grouped with the selling expenses in the Operating Expenses section of the income statement. 
C) If a business is to earn a net income, the gross profit on sales must be greater than operating expenses. 
D) Sales less Operating Expenses equals Gross Profit. 
A) The term single-step income statement is sometimes used to describe a classified income statement. 
B) Salaries of office employees would be grouped with the selling expenses in the Operating Expenses section of the income statement. 
C) If a business is to earn a net income, the gross profit on sales must be greater than operating expenses. 
D) Sales less Operating Expenses equals Gross Profit.

Question 3

The balance of the Sales Returns and Allowances account is reported as a selling expense in Operating Expenses section of a multiple-step income statement.

Accepted Answer

A) True 
 B)False

Question 4

Current assets are usually listed on a balance sheet in order of liquidity.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) Payroll Tax Expense 
B) Sales 
C) Capital 
D) Depreciation Expense 
A) Payroll Tax Expense 
B) Sales 
C) Capital 
D) Depreciation Expense

Question 6

Which of the following accounts is not closed at the end of the accounting period?

Accepted Answer

A) Purchase Discounts 
B) Capital 
C) Depreciation Expense 
D) Sales 
A) Purchase Discounts 
B) Capital 
C) Depreciation Expense 
D) Sales

Question 7

Each reversing entry is the exact opposite of the related________ entry.

Accepted Answer

The answer of Each reversing entry is the exact opposite...

Question 8

Which of the following groups of accounts will have zero balances after the closing process is completed?

Accepted Answer

A) Depreciation Expense and Accumulated Depreciation-Equipment 
B) Allowance for Doubtful Accounts and Uncollectible Accounts Expense 
C) Purchases and Purchases Returns and Allowances 
D) Merchandise Inventory and Sales 
A) Depreciation Expense and Accumulated Depreciation-Equipment 
B) Allowance for Doubtful Accounts and Uncollectible Accounts Expense 
C) Purchases and Purchases Returns and Allowances 
D) Merchandise Inventory and Sales

Question 9

Brianna Graham is the owner of a dress shop. The firm had a net loss of $9,000 for the year. What accounts are debited and credited to transfer the net loss to the owner's capital account during the closing process?

Accepted Answer

Debit Brianna Graham

Question 10

At the end of the period, the balance of the Accounts Receivable account is closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is not correct?

Accepted Answer

A) A current ratio of 3.5 to 1 means that a firm has $3.50 in current liabilities for every $1 of current assets. 
B) The gross profit percentage is calculated by dividing the gross profit for the year by the net sales for the year. 
C) Working capital is the difference between total current assets and total current liabilities. 
D) The average inventory is calculated by adding the beginning inventory to the ending inventory and dividing the sum by 2. 
A) A current ratio of 3.5 to 1 means that a firm has $3.50 in current liabilities for every $1 of current assets. 
B) The gross profit percentage is calculated by dividing the gross profit for the year by the net sales for the year. 
C) Working capital is the difference between total current assets and total current liabilities. 
D) The average inventory is calculated by adding the beginning inventory to the ending inventory and dividing the sum by 2.

Question 12

Which of the following is not a current asset?

Accepted Answer

A) Accounts Receivable 
B) Prepaid Insurance 
C) Merchandise Inventory 
D) Equipment 
A) Accounts Receivable 
B) Prepaid Insurance 
C) Merchandise Inventory 
D) Equipment

Question 13

Which of the following is not a section on a Classified Balance Sheet:

Accepted Answer

A) Plant and Equipment 
B) Current Assets 
C) Long-Term Liabilities 
D) Selling Expenses 
A) Plant and Equipment 
B) Current Assets 
C) Long-Term Liabilities 
D) Selling Expenses

Question 14

For the current fiscal year, Purchases were $680,000, Purchase Returns and Allowances were
$21,640, Purchase Discounts were $5,800 and Freight In was $41,500. If the beginning merchandise inventory was $240,000 and the ending merchandise inventory was $215,000, the Cost of Goods Sold is:

Accepted Answer

A) $501,060 
B) $719,060 
C) $636,060 
D) $476,060 
A) $501,060 
B) $719,060 
C) $636,060 
D) $476,060

Question 15

The statement of owner's equity is prepared before the balance sheet so that the ending owner's capital balance is available for the balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following accounts would be closed at the end of the accounting period?

Accepted Answer

A) Capital 
B) Accumulated Depreciation 
C) Prepaid Rent 
D) Depreciation Expense 
A) Capital 
B) Accumulated Depreciation 
C) Prepaid Rent 
D) Depreciation Expense

Question 17

Use the following account balances from the adjusted trial balance columns of RB Auto's
Worksheet to answer below question.
  
-
Select the correct closing entry that RB Auto would make to close the owner's withdrawal account at the end of the accounting period.

Accepted Answer

A) debit R. Holloway, Capital $500 and credit R. Holloway, Drawing for $500. 
B) debit R. Holloway, Drawing $500 credit R. Holloway, Capital for $500. 
C) debit Income Summary $500 and credit R. Holloway, Drawing for $500. 
D) debit R. Holloway, Drawing $500 and credit Income Summary for $500. 
A) debit R. Holloway, Capital $500 and credit R. Holloway, Drawing for $500. 
B) debit R. Holloway, Drawing $500 credit R. Holloway, Capital for $500. 
C) debit Income Summary $500 and credit R. Holloway, Drawing for $500. 
D) debit R. Holloway, Drawing $500 and credit Income Summary for $500.

Question 18

If the Income Summary account has a credit balance after revenues, and expenses are closed, the firm had a net income for the fiscal period.

Accepted Answer

A) True 
 B)False

Question 19

The beginning capital balance shown on a statement of owner's equity is $80,000. Net income for the period is $37,000. The owner made no additional investments during the period. The owner's capital balance at the end of the period is $96,000. The amount the owner withdrew for personal use during the period is

Accepted Answer

A) $37,000. 
B) $16,000. 
C) $80,000. 
D) $21,000. 
A) $37,000. 
B) $16,000. 
C) $80,000. 
D) $21,000.

Question 20

Teresa Davis is the owner of a convenience shop. The firm had a net income of $4,500 for the year. What accounts are debited and credited to transfer the net income to the owner's capital account during the closing process?

Accepted Answer

Debit Income Summary

Exam 13: Financial Statements and Closing Procedures

Which of the following accounts will NOT appear on the post-closing trial balance?

Which of the following statements is correct?

The balance of the Sales Returns and Allowances account is reported as a selling expense in Operating Expenses section of a multiple-step income statement.

Current assets are usually listed on a balance sheet in order of liquidity.

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

Which of the following accounts is not closed at the end of the accounting period?

Each reversing entry is the exact opposite of the related________ entry.

Which of the following groups of accounts will have zero balances after the closing process is completed?

Brianna Graham is the owner of a dress shop. The firm had a net loss of $9,000 for the year. What accounts are debited and credited to transfer the net loss to the owner's capital account during the closing process?

At the end of the period, the balance of the Accounts Receivable account is closed to the Income Summary account.

Which of the following statements is not correct?

Which of the following is not a current asset?

Which of the following is not a section on a Classified Balance Sheet:

For the current fiscal year, Purchases were $680,000, Purchase Returns and Allowances were $21,640, Purchase Discounts were $5,800 and Freight In was $41,500. If the beginning merchandise inventory was $240,000 and the ending merchandise inventory was $215,000, the Cost of Goods Sold is:

The statement of owner's equity is prepared before the balance sheet so that the ending owner's capital balance is available for the balance sheet.

Which of the following accounts would be closed at the end of the accounting period?

Use the following account balances from the adjusted trial balance columns of RB Auto's Worksheet to answer below question. - Select the correct closing entry that RB Auto would make to close the owner's withdrawal account at the end of the accounting period.

If the Income Summary account has a credit balance after revenues, and expenses are closed, the firm had a net income for the fiscal period.

Teresa Davis is the owner of a convenience shop. The firm had a net income of $4,500 for the year. What accounts are debited and credited to transfer the net income to the owner's capital account during the closing process?

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

Closing Entries and Teh Postclosing Trial Balance

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

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 Analysis

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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