Question 1

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

Question 2

When the balance of the Income Summary account is a credit,the entry to close this account is:

Accepted Answer

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

Question 3

The Rent Expense account had a normal balance of $1,100.The entry to close the account would include a:

Accepted Answer

A) debit to Rent Expense,$1,100. 
B) debit to Income Summary,$1,100. 
C) debit to Capital,$1,100. 
D) credit to Income Summary,$1,100. 
A) debit to Rent Expense,$1,100. 
B) debit to Income Summary,$1,100. 
C) debit to Capital,$1,100. 
D) credit to Income Summary,$1,100.

Question 4

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. 
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 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. 
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

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) None of these are correct. 
A) Capital is decreased. 
B) Capital is increased. 
C) Withdrawals is increased. 
D) None of these are correct.

Question 7

A nominal account is the same as a permanent account.

Accepted Answer

A) True 
 B)False

Question 8

What are the major goals of the closing process?

Accepted Answer

Closing is a mechanical process that aid

Question 9

Each individual revenue account is debited when closing,and the total of all the revenue accounts is transferred to Income Summary.

Accepted Answer

A) True 
 B)False

Question 10

The income statement credit column of the worksheet showed the following revenues: $$\begin{array} {| l | r |} 
\hline \text { Catering Fees } & \$ 500 \
\hline \text { Cleaning Fees } & 800 \
\hline
\end{array}$$ The journal entry to close the revenue accounts is:

Accepted Answer

A)  $\begin{array}{|l|lcc|}
  \hline\text { Income Summary } \quad\quad\quad&1,300  \
 \hline\quad\quad\quad\quad\quad\quad\text { Catering Fees } &\quad\quad\quad\quad\quad\quad500\
 \hline\quad\quad\quad\quad\quad\quad\text { Cleaning Fees } &\quad\quad\quad\quad\quad\quad800\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|r|}
\hline  \text { Catering Fees } & 500 \
\hline \text { Cleaning Fees } & 300 \
\hline\quad\quad\quad \text { Income Stummary } &\quad\quad\quad\quad1,300\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline  \text { Capital } &1,300  \
\hline \text { Income Summary } &1,300\
\hline 
\end{array}$ 
D)  $$\begin{array} { | l | l | } 
\hline \text { Catering Fees }\quad\quad\quad & 500 \
\hline \text { Cleaning Fees } & 800 \
\hline\quad\quad\quad\quad\quad\quad\quad { \text { Capital } } &\quad\quad\quad 1,300\
\hline
\end{array}$$ 
A)  $\begin{array}{|l|lcc|}
  \hline\text { Income Summary } \quad\quad\quad&1,300  \
 \hline\quad\quad\quad\quad\quad\quad\text { Catering Fees } &\quad\quad\quad\quad\quad\quad500\
 \hline\quad\quad\quad\quad\quad\quad\text { Cleaning Fees } &\quad\quad\quad\quad\quad\quad800\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|r|}
\hline  \text { Catering Fees } & 500 \
\hline \text { Cleaning Fees } & 300 \
\hline\quad\quad\quad \text { Income Stummary } &\quad\quad\quad\quad1,300\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline  \text { Capital } &1,300  \
\hline \text { Income Summary } &1,300\
\hline 
\end{array}$ 
D)  $$\begin{array} { | l | l | } 
\hline \text { Catering Fees }\quad\quad\quad & 500 \
\hline \text { Cleaning Fees } & 800 \
\hline\quad\quad\quad\quad\quad\quad\quad { \text { Capital } } &\quad\quad\quad 1,300\
\hline
\end{array}$$

Question 11

Tim's Electrical Service purchased tools for $4,000.They have an expected life of 20 months and no residual value.The adjusting journal entry for the month is:

Accepted Answer

A)  $$\begin{array} { | l | l | } 
\hline \text { Depreciation Expense } & 200 \
\hline \text { Equipment } & 200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | l | } 
\hline \text { Depreciation Expense } & 200 \
\hline \text { Accumulated Depreciation } & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | l | } 
\hline \text { Accumulated Depreciation } & 200 \
\hline \text { Depreciation Expense } & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | l | } 
\hline \text { Accumulated Depreciation } & 200 \
\hline { \text { Equipment } }&200 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | l | } 
\hline \text { Depreciation Expense } & 200 \
\hline \text { Equipment } & 200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | l | } 
\hline \text { Depreciation Expense } & 200 \
\hline \text { Accumulated Depreciation } & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | l | } 
\hline \text { Accumulated Depreciation } & 200 \
\hline \text { Depreciation Expense } & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | l | } 
\hline \text { Accumulated Depreciation } & 200 \
\hline { \text { Equipment } }&200 \
\hline
\end{array}$$

Question 12

The correct order for closing accounts is:

Accepted Answer

A) revenue,expenses,income summary,withdrawals. 
B) revenue,income summary,expenses,withdrawals. 
C) revenue,expenses,capital,withdrawals. 
D) revenue,capital,expenses,withdrawals. 
A) revenue,expenses,income summary,withdrawals. 
B) revenue,income summary,expenses,withdrawals. 
C) revenue,expenses,capital,withdrawals. 
D) revenue,capital,expenses,withdrawals.

Question 13

The entry to close the Depreciation Expense account would cause:

Accepted Answer

A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Depreciation Expense account balance to decrease. 
D) None of these are correct. 
A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Depreciation Expense account balance to decrease. 
D) None of these are correct.

Question 14

All closing entries must be posted before preparing the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 15

To close the Fees Earned account:

Accepted Answer

A) debit Income Summary; credit Fees Earned. 
B) debit Fees Earned; credit Capital. 
C) debit Fees Earned; credit Income Summary. 
D) debit Capital; credit Fees Earned. 
A) debit Income Summary; credit Fees Earned. 
B) debit Fees Earned; credit Capital. 
C) debit Fees Earned; credit Income Summary. 
D) debit Capital; credit Fees Earned.

Question 16

The entry to close the revenue account(s)was entered in reverse-Income Summary was debited and the revenue account(s)was/were credited.The result of this error is that:

Accepted Answer

A) before closing it,Income Summary will have a credit balance. 
B) before closing it,Income Summary will have a debit balance. 
C) the assets will be overstated. 
D) the liabilities will be overstated. 
A) before closing it,Income Summary will have a credit balance. 
B) before closing it,Income Summary will have a debit balance. 
C) the assets will be overstated. 
D) the liabilities will be overstated.

Question 17

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

Accepted Answer

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

Question 18

Closing entries are found in the adjustment columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 19

The entry to close the Fees Earned account would cause:

Accepted Answer

A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Fees Earned account to decrease. 
D) None of these are correct. 
A) the Capital account balance to increase. 
B) the Capital account balance to decrease. 
C) the Fees Earned account to decrease. 
D) None of these are correct.

Question 20

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

Accepted Answer

A) True 
 B)False

Exam 5: The Accounting Cycle Completed

When revenue is closed:

When the balance of the Income Summary account is a credit,the entry to close this account is:

The Rent Expense account had a normal balance of $1,100.The entry to close the account would include a:

In the normal accounting cycle the:

Adjusting journal entries:

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

A nominal account is the same as a permanent account.

What are the major goals of the closing process?

Each individual revenue account is debited when closing,and the total of all the revenue accounts is transferred to Income Summary.

The income statement credit column of the worksheet showed the following revenues: Catering Fees \ 500 Cleaning Fees 800 The journal entry to close the revenue accounts is:

Tim's Electrical Service purchased tools for $4,000.They have an expected life of 20 months and no residual value.The adjusting journal entry for the month is:

The correct order for closing accounts is:

The entry to close the Depreciation Expense account would cause:

All closing entries must be posted before preparing the post-closing trial balance.

To close the Fees Earned account:

The entry to close the revenue account(s)was entered in reverse-Income Summary was debited and the revenue account(s)was/were credited.The result of this error is that:

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

Closing entries are found in the adjustment columns of the worksheet.

The entry to close the Fees Earned account would cause:

The trial balance prepared after all of the temporary accounts have been closed is called a post-closing trial balance.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters