Question 1

After the________ entries are posted, the Sales account will have a zero balance.

Accepted Answer

The answer of After the________ entries are posted, the Sales...

Question 2

The owner of a firm had capital of $78,000 on January 1, 2019, and made withdrawals of $29,000 during 2019. The business earned a net income of $42,000 for the year.
1. What amount of capital was shown as of December 31, 2019, on the statement of owner's equity?
2. How much was the increase or decrease in capital for the year?

Accepted Answer

1. $91,000

Question 3

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 their expense account(s)at the end of the accounting period.

Accepted Answer

A) debit R. Holloway, Capital $9,000 and credit Salary Expense $4,000; credit Rent Expense
$3,000; credit Purchases $2,000 
B) debit Income Summary $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000 
C) debit Salary Expense $4,000; debit Rent Expense $3,000; debit Purchases $2,000 and credit
Income Summary $9,000 
D) debit Income Summary $9,000 and credit R. Holloway, Capital for $9,000 
A) debit R. Holloway, Capital $9,000 and credit Salary Expense $4,000; credit Rent Expense
$3,000; credit Purchases $2,000 
B) debit Income Summary $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000 
C) debit Salary Expense $4,000; debit Rent Expense $3,000; debit Purchases $2,000 and credit
Income Summary $9,000 
D) debit Income Summary $9,000 and credit R. Holloway, Capital for $9,000

Question 4

In the general journal, reversing entries are dated as of

Accepted Answer

A) any time before the end of the fiscal period. 
B) the first day of the new fiscal period. 
C) any day during the month of the new fiscal period. 
D) the last day of the old fiscal period. 
A) any time before the end of the fiscal period. 
B) the first day of the new fiscal period. 
C) any day during the month of the new fiscal period. 
D) the last day of the old fiscal period.

Question 5

A classified income statement showed net sales of $630,000, cost of goods sold of $342,000, and total operating expenses of $192,000 for the fiscal year ended June 30, 2019.
1. What was the gross profit on sales?
2. What was the net income from operations?

Accepted Answer

1. $288,00

Question 6

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were
$4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Net Delivered Cost of Purchases is:

Accepted Answer

A) $172,300 
B) $193,300 
C) $187,000 
D) $201,700 
A) $172,300 
B) $193,300 
C) $187,000 
D) $201,700

Question 7

The owner of a firm had capital of $170,000 on January 1, 2019, and made withdrawals of $96,000 during 2019. The business earned a net income of $90,000 for the year.
1. What amount of capital was shown as of December 31, 2019, on the statement of owner's equity?
2. How much was the increase or decrease in capital for the year?

Accepted Answer

1. $164,00

Question 8

Which of the following statements is not correct?

Accepted Answer

A) In the closing process, the balance of the Purchases account is transferred to the Merchandise Inventory account. 
B) Closing the Revenue accounts is the first step in the closing process. 
C) In the closing process, the balance of the owner's drawing account is transferred to the debit side of the owner's capital account. 
D) The worksheet is the source of data for the general journal entries required to close the temporary accounts. 
A) In the closing process, the balance of the Purchases account is transferred to the Merchandise Inventory account. 
B) Closing the Revenue accounts is the first step in the closing process. 
C) In the closing process, the balance of the owner's drawing account is transferred to the debit side of the owner's capital account. 
D) The worksheet is the source of data for the general journal entries required to close the temporary accounts.

Question 9

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

Accepted Answer

A) Merchandise Inventory 
B) Purchases 
C) Prepaid Rent 
D) Accumulated Depreciation 
A) Merchandise Inventory 
B) Purchases 
C) Prepaid Rent 
D) Accumulated Depreciation

Question 10

The current ratio is calculated by

Accepted Answer

A) dividing total assets by total liabilities. 
B) subtracting current liabilities from current assets. 
C) adding current assets to current liabilities. 
D) dividing current assets by current liabilities. 
A) dividing total assets by total liabilities. 
B) subtracting current liabilities from current assets. 
C) adding current assets to current liabilities. 
D) dividing current assets by current liabilities.

Question 11

Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:

Accepted Answer

A) Delivery Expense 
B) Sales Salaries Expense 
C) Advertising Expense 
D) Insurance Expense 
A) Delivery Expense 
B) Sales Salaries Expense 
C) Advertising Expense 
D) Insurance Expense

Question 12

Interest Expense is classified as a(n):

Accepted Answer

A) Administrative Expense 
B) Other Expense 
C) Selling Expense 
D) Other Income 
A) Administrative Expense 
B) Other Expense 
C) Selling Expense 
D) Other Income

Question 13

The balance of the owner's drawing account is reported

Accepted Answer

A) in the Operating Expenses section of the income statement. 
B) in the Current Assets section of the balance sheet. 
C) in the Other Expenses section of the income statement. 
D) on the statement of owner's equity. 
A) in the Operating Expenses section of the income statement. 
B) in the Current Assets section of the balance sheet. 
C) in the Other Expenses section of the income statement. 
D) on the statement of owner's equity.

Question 14

Use the following account balances from the adjusted trial balance columns of Goody Chocolate's
Worksheet to answer below question.
  
-
Using the adjusted trial balance above, select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances)at the end of the accounting period.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 15

On a classified balance sheet, Accounts Payable would appear in the________ section.

Accepted Answer

The answer of On a classified balance sheet, Accounts Payable...

Question 16

Which of the following would not be classified as a Current Asset:

Accepted Answer

A) Cash 
B) Accounts Receivable 
C) Equipment 
D) Supplies 
A) Cash 
B) Accounts Receivable 
C) Equipment 
D) Supplies

Question 17

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

Accepted Answer

A) Interest Expense 
B) Accumulated Depreciation 
C) Depreciation Expense 
D) Sales 
A) Interest Expense 
B) Accumulated Depreciation 
C) Depreciation Expense 
D) Sales

Question 18

The Income Summary account, for Wise Tools appears below. Based on the data contained in the account, determine which of the statements below is correct.
Income Summary

Accepted Answer

A) Wise Tools will report net income of $1,000 for the period ending 12/31 
B) Wise Tools will report net income of $6,000 for the period ending 12/31 
C) Wise Tools will report a $1,000 net loss for the period ending 12/31 
D) Wise Tools will report a $6,000 net loss for the period ending 12/31 
A) Wise Tools will report net income of $1,000 for the period ending 12/31 
B) Wise Tools will report net income of $6,000 for the period ending 12/31 
C) Wise Tools will report a $1,000 net loss for the period ending 12/31 
D) Wise Tools will report a $6,000 net loss for the period ending 12/31

Question 19

Prepaid expenses appear in the

Accepted Answer

A) Operating Expenses section of the income statement. 
B) Current Liabilities section of the balance sheet. 
C) Other Expenses section of the income statement. 
D) Current Assets section of the balance sheet. 
A) Operating Expenses section of the income statement. 
B) Current Liabilities section of the balance sheet. 
C) Other Expenses section of the income statement. 
D) Current Assets section of the balance sheet.

Question 20

All accounts appearing in the ________section of the worksheet are closed to the Income Summary account.

Accepted Answer

The answer of All accounts appearing in the ________section of...

Exam 13: Financial Statements and Closing Procedures

After the________ entries are posted, the Sales account will have a zero balance.

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 their expense account(s)at the end of the accounting period.

In the general journal, reversing entries are dated as of

A classified income statement showed net sales of $630,000, cost of goods sold of $342,000, and total operating expenses of $192,000 for the fiscal year ended June 30, 2019. 1. What was the gross profit on sales? 2. What was the net income from operations?

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Net Delivered Cost of Purchases is:

Which of the following statements is not correct?

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

The current ratio is calculated by

Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:

Interest Expense is classified as a(n):

The balance of the owner's drawing account is reported

On a classified balance sheet, Accounts Payable would appear in the________ section.

Which of the following would not be classified as a Current Asset:

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

The Income Summary account, for Wise Tools appears below. Based on the data contained in the account, determine which of the statements below is correct. Income Summary

Prepaid expenses appear in the

All accounts appearing in the ________section of the worksheet are closed to the Income Summary 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

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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