Question 1

The postclosing trial balance lists only the ________ accounts.

Accepted Answer

asset, lia

Question 2

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

Accepted Answer

The answer of In the closing procedure, the total of...

Question 3

"Closing" is written in the Description column of the individual revenue and expense accounts in the general ledger.

Accepted Answer

A) True 
 B)False

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

Question 5

Which of the following accounts will not normally have a zero balance after the closing entries have been posted?

Accepted Answer

A) Fees Income 
B) Rent Expense 
C) Capital 
D) Income Summary 
A) Fees Income 
B) Rent Expense 
C) Capital 
D) Income Summary

Question 6

After the transactions have been posted, the next step in the accounting cycle is to:

Accepted Answer

A) prepare the post-closing trial balance. 
B) prepare the worksheet. 
C) journalize and post the adjusting entries. 
D) prepare the financial statements. 
A) prepare the post-closing trial balance. 
B) prepare the worksheet. 
C) journalize and post the adjusting entries. 
D) prepare the financial statements.

Question 7

The trial balance is prepared to make sure that the general ledger is in balance after adjusting and closing entries have been recorded and posted.

Accepted Answer

The answer of The trial balance is prepared to make...

Question 8

One purpose of closing entries is to:

Accepted Answer

A) reduce the owner's capital account balance to zero so that the account is ready for the next period. 
B) transfer the results of operations to owner's equity. 
C) adjust the ledger account balances to provide complete and accurate figures for use on financial statements. 
D) close all accounts so that the ledger is ready for the next accounting period. 
A) reduce the owner's capital account balance to zero so that the account is ready for the next period. 
B) transfer the results of operations to owner's equity. 
C) adjust the ledger account balances to provide complete and accurate figures for use on financial statements. 
D) close all accounts so that the ledger is ready for the next accounting period.

Question 9

On December 31, the ledger of Hartley Engineering Company contained the following account balances:
  
All the accounts have normal balances. Journalize the closing entries. Use 6 as the general journal page number. (Note: if you want the accounts to be in alpha order, they need to be re-arranged.)

Accepted Answer

The answer of On December 31, the ledger of Hartley...

Question 10

Listed below in random order are the steps in the accounting cycle.
1()prepare the financial statements
2()post the journal entries to the ledger
3()record journal entries
4()prepare a trial balance
What is the proper order of these steps?

Accepted Answer

A) (2), (3), (4), (1) 
B) (3), (2), (1), (4) 
C) (3), (2), (4), (1) 
D) (4), (3), (2), (1) 
A) (2), (3), (4), (1) 
B) (3), (2), (1), (4) 
C) (3), (2), (4), (1) 
D) (4), (3), (2), (1)

Question 11

The entry to transfer a net loss to the owner's capital account would include:

Accepted Answer

A) a debit to the Capital account and a credit to Income Summary. 
B) a debit to Income Summary and a credit to Capital. 
C) a debit to the Capital account and a credit to Cash. 
D) a debit to the Capital account and a credit to the Drawing account. 
A) a debit to the Capital account and a credit to Income Summary. 
B) a debit to Income Summary and a credit to Capital. 
C) a debit to the Capital account and a credit to Cash. 
D) a debit to the Capital account and a credit to the Drawing account.

Question 12

The firm had net income if the entry to close the Income Summary account is recorded as a________ to the owner's capital account.

Accepted Answer

The answer of The firm had net income if the...

Question 13

A compound entry in the general journal is made to close expense accounts.

Accepted Answer

A) True 
 B)False

Question 14

Use the following account balances from the adjusted trial balance of ABC Consulting:
 
Select the correct closing entry that ABC Consulting would make to close their expense account(s)at the end of the accounting period.

Accepted Answer

A) debit Salary Expense $2,600; debit Rent Expense $3,000; debit Supplies Expense $1,900; debit Advertising Expense $800 and credit Income Summary $8,300. 
B) debit Income Summary $8,300 and credit B. Conway, Capital for $8,300. 
C) debit B. Conway, Capital $8,300 and credit Salary Expense $2,600; credit Rent Expense
$3,000; credit Supplies Expense $1,900; Advertising Expense $800. 
D) debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800. 
A) debit Salary Expense $2,600; debit Rent Expense $3,000; debit Supplies Expense $1,900; debit Advertising Expense $800 and credit Income Summary $8,300. 
B) debit Income Summary $8,300 and credit B. Conway, Capital for $8,300. 
C) debit B. Conway, Capital $8,300 and credit Salary Expense $2,600; credit Rent Expense
$3,000; credit Supplies Expense $1,900; Advertising Expense $800. 
D) debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.

Question 15

The Income Summary and Meryl Sussman, Capital accounts for Sussman Interior Design Services at the end of its accounting period follow.

Complete the following statements.
A. Total revenue for the period is ________.
B. Total expenses for the period are ________.
C. Net income (loss)for the period is ________.
D. Owner's withdrawals for the period are ________.

Accepted Answer

(A) $65,000, (B) $98

Question 16

The balance of the Income Summary account is transferred to the ________ account.

Accepted Answer

The answer of The balance of the Income Summary account...

Question 17

Select the correct closing entry that ABC Consulting would make to close the owner's drawing account at the end of the accounting period.

Accepted Answer

A) debit B. Conway, Drawing $600 credit B. Conway, Capital for $600. 
B) debit B. Conway, Capital $600 and credit B. Conway, Drawing for $600. 
C) debit B. Conway, Drawing $600 and credit Income Summary for $600. 
D) debit Income Summary $600 and credit B. Conway, Drawing for $600. 
A) debit B. Conway, Drawing $600 credit B. Conway, Capital for $600. 
B) debit B. Conway, Capital $600 and credit B. Conway, Drawing for $600. 
C) debit B. Conway, Drawing $600 and credit Income Summary for $600. 
D) debit Income Summary $600 and credit B. Conway, Drawing for $600.

Question 18

The temporary owner's equity accounts are closed because they apply to only one accounting period.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following accounts would not be involved in any of the closing entries?

Accepted Answer

A) Fred Sanford, Drawing 
B) Advertising Expense 
C) Accounts Payable 
D) Income from Services 
A) Fred Sanford, Drawing 
B) Advertising Expense 
C) Accounts Payable 
D) Income from Services

Question 20

One purpose of closing entries is to zero out the balances in the:

Accepted Answer

A) liability and capital accounts. 
B) expense and capital accounts. 
C) asset and liability accounts. 
D) revenue and expense accounts. 
A) liability and capital accounts. 
B) expense and capital accounts. 
C) asset and liability accounts. 
D) revenue and expense accounts.

Exam 6: Closing Entries and Teh Postclosing Trial Balance

The postclosing trial balance lists only the ________ accounts.

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

"Closing" is written in the Description column of the individual revenue and expense accounts in the general ledger.

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:

Which of the following accounts will not normally have a zero balance after the closing entries have been posted?

After the transactions have been posted, the next step in the accounting cycle is to:

The trial balance is prepared to make sure that the general ledger is in balance after adjusting and closing entries have been recorded and posted.

One purpose of closing entries is to:

On December 31, the ledger of Hartley Engineering Company contained the following account balances: All the accounts have normal balances. Journalize the closing entries. Use 6 as the general journal page number. (Note: if you want the accounts to be in alpha order, they need to be re-arranged.)

Listed below in random order are the steps in the accounting cycle. 1()prepare the financial statements 2()post the journal entries to the ledger 3()record journal entries 4()prepare a trial balance What is the proper order of these steps?

The entry to transfer a net loss to the owner's capital account would include:

The firm had net income if the entry to close the Income Summary account is recorded as a________ to the owner's capital account.

A compound entry in the general journal is made to close expense accounts.

Use the following account balances from the adjusted trial balance of ABC Consulting: Select the correct closing entry that ABC Consulting would make to close their expense account(s)at the end of the accounting period.

The balance of the Income Summary account is transferred to the ________ account.

Select the correct closing entry that ABC Consulting would make to close the owner's drawing account at the end of the accounting period.

The temporary owner's equity accounts are closed because they apply to only one accounting period.

Which of the following accounts would not be involved in any of the closing entries?

One purpose of closing entries is to zero out the balances in the:

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 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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