Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

After posting adjusting entries,the temporary accounts will be set back to zero.

Accepted Answer

A) True 
 B)False

Question 3

B.Benson's worksheet showed the revenue account,Rental Fees,$1,300.The journal entry to close the account is:

Accepted Answer

A)  $\begin{array}{|l|lcc|}
\hline  \text { Rental Fees}\quad\quad\quad\quad &1,300\
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Income Summary} &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline  \text { Benson, Capital }\quad\quad\quad\quad &1,300\
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {Rental Fees} &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline  \text { Rental Fees }\quad\quad\quad\quad &1,300\
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Benson, Capital } &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$ 
D)  $\begin{array}{|l|lcc|}
\hline  \text { Income Summary}\quad\quad\quad\quad &1,300  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Rental Fees} &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$ 
A)  $\begin{array}{|l|lcc|}
\hline  \text { Rental Fees}\quad\quad\quad\quad &1,300\
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Income Summary} &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline  \text { Benson, Capital }\quad\quad\quad\quad &1,300\
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {Rental Fees} &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline  \text { Rental Fees }\quad\quad\quad\quad &1,300\
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Benson, Capital } &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$ 
D)  $\begin{array}{|l|lcc|}
\hline  \text { Income Summary}\quad\quad\quad\quad &1,300  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Rental Fees} &\quad\quad\quad\quad\quad\quad1,300\
\hline  
\end{array}$

Question 4

The balance in the Rent Expense account on the worksheet was $120.The journal entry to close the Rent Expense account is:

Accepted Answer

A)  $\begin{array}{|l|lcc|}
\hline  \text {  Rent Expense}\quad\quad\quad\quad &120  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {  Prepaid Rent} &\quad\quad\quad\quad\quad\quad120\
\hline  
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline  \text {  Rent Expense}\quad\quad\quad\quad &120  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {  Income Summary } &\quad\quad\quad\quad\quad\quad120\
\hline  
\end{array}$ 
C)  $$\begin{array} { | r | r | } 
\hline \text { Rent Expense }\quad\quad\quad\quad\quad\quad\quad\quad\quad & 120 \
\hline \text { Capital } &\quad\quad\quad\quad 120 \
\hline
\end{array}$$ 
D)  $\begin{array}{|l|lcc|}
\hline  \text { Income Summary}\quad\quad\quad\quad &120  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Rent Expense} &\quad\quad\quad\quad\quad\quad120\
\hline  
\end{array}$ 
A)  $\begin{array}{|l|lcc|}
\hline  \text {  Rent Expense}\quad\quad\quad\quad &120  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {  Prepaid Rent} &\quad\quad\quad\quad\quad\quad120\
\hline  
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline  \text {  Rent Expense}\quad\quad\quad\quad &120  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {  Income Summary } &\quad\quad\quad\quad\quad\quad120\
\hline  
\end{array}$ 
C)  $$\begin{array} { | r | r | } 
\hline \text { Rent Expense }\quad\quad\quad\quad\quad\quad\quad\quad\quad & 120 \
\hline \text { Capital } &\quad\quad\quad\quad 120 \
\hline
\end{array}$$ 
D)  $\begin{array}{|l|lcc|}
\hline  \text { Income Summary}\quad\quad\quad\quad &120  \
 \hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Rent Expense} &\quad\quad\quad\quad\quad\quad120\
\hline  
\end{array}$

Question 5

M.Smuts showed a net income of $6,000.The entry to close the Income Summary account would include a:

Accepted Answer

A) debit to M.Smuts Capital,$6,000. 
B) credit to M.Smuts Capital,$6,000. 
C) debit to Income Summary,$6,000. 
D) Both B and C are correct. 
A) debit to M.Smuts Capital,$6,000. 
B) credit to M.Smuts Capital,$6,000. 
C) debit to Income Summary,$6,000. 
D) Both B and C are correct.

Question 6

Tina's Event Planning bought a computer worth $3,500 with an expected life of 5 years and a residual value of $750.What is the adjusting journal entry after the first year?

Accepted Answer

A)  
$$\begin{array} { | c | l | } 
\hline \text {  Computer  } & 550 \
\hline \text { Depreciation Expense } & 550 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | l | } 
\hline \text { Computer } & 550 \
\hline \text { Accumulated Depreciation, Computer } & 550 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | l | } 
\hline \text { Depreciation Expense } & 550 \
\hline \text { Accumulated Depreciation, Computer } & 550 \
\hline
\end{array}$$ 
D)  
$$\begin{array} { | c | l | } 
\hline \text {Depreciation Expense} & 550 \
\hline \text { Computer} & 550 \
\hline
\end{array}$$ 
A)  
$$\begin{array} { | c | l | } 
\hline \text {  Computer  } & 550 \
\hline \text { Depreciation Expense } & 550 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | l | } 
\hline \text { Computer } & 550 \
\hline \text { Accumulated Depreciation, Computer } & 550 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | l | } 
\hline \text { Depreciation Expense } & 550 \
\hline \text { Accumulated Depreciation, Computer } & 550 \
\hline
\end{array}$$ 
D)  
$$\begin{array} { | c | l | } 
\hline \text {Depreciation Expense} & 550 \
\hline \text { Computer} & 550 \
\hline
\end{array}$$

Question 7

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
$$\begin{array}{l}
\text { Example: }\
\begin{array} { | l | l | l | r | l | } 
\hline & \text { Column } 1 & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } & \text { Permanent } \
\hline
\end{array}
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Fees Earned } & & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | l | l | c | c |

Question 8

A summary of selected ledger accounts appear below for S.Ball for the current calendar year.   Answer the following questions.
1.What was the total amount of withdrawals for the year?
2.What was the net income?
3.What was the total revenue?
4.What were the total expenses?

Accepted Answer

1.$6,000

Question 9

Nominal accounts are called temporary accounts because their balances are not carried forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following sequence of actions describes the proper order in the accounting cycle?

Accepted Answer

A) Journalize,post,close,prepare financial statements,adjust,and analyze transactions 
B) Prepare financial statements,journalize,post,adjust,analyze transactions,close 
C) Analyze transactions,journalize,post,adjust,prepare financial statements,close 
D) Post,close,prepare financial statements,adjust,analyze transactions,and journalize 
A) Journalize,post,close,prepare financial statements,adjust,and analyze transactions 
B) Prepare financial statements,journalize,post,adjust,analyze transactions,close 
C) Analyze transactions,journalize,post,adjust,prepare financial statements,close 
D) Post,close,prepare financial statements,adjust,analyze transactions,and journalize

Question 11

Why will the Income Summary account never appear on a financial statement?

Accepted Answer

The Income Summary account is used durin

Question 12

Closing entries will update the Capital account to the same figure that is on the balance sheet for that date.

Accepted Answer

A) True 
 B)False

Question 13

Determine the ending owner's equity of a business having a beginning owner's equity of $4,200,withdrawals of $1,500,and after closing the revenues and expenses Income Summary has a credit balance of $4,750.
$ ________

Accepted Answer

$7,450 [$4

Question 14

There are 7 closing entries.

Accepted Answer

A) True 
 B)False

Question 15

Closing entries will:

Accepted Answer

A) increase the Owner's Capital. 
B) decrease the Owner's Capital balance. 
C) either increase or decrease Owner's Capital. 
D) not affect the Owner's Capital balance. 
A) increase the Owner's Capital. 
B) decrease the Owner's Capital balance. 
C) either increase or decrease Owner's Capital. 
D) not affect the Owner's Capital balance.

Question 16

Which of the following is a real account?

Accepted Answer

A) Cash 
B) Fees Earned 
C) Utilities Expense 
D) Income Summary 
A) Cash 
B) Fees Earned 
C) Utilities Expense 
D) Income Summary

Question 17

The Withdrawals account is closed to Income Summary.

Accepted Answer

A) True 
 B)False

Question 18

Revenues and expenses are closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 19

How do you close a revenue account?

Accepted Answer

A) Debit Capital; credit Revenue 
B) Credit Capital; debit Revenue 
C) Credit Income Summary; debit Revenue 
D) Debit Income Summary; credit Revenue 
A) Debit Capital; credit Revenue 
B) Credit Capital; debit Revenue 
C) Credit Income Summary; debit Revenue 
D) Debit Income Summary; credit Revenue

Question 20

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
$$\begin{array}{l}
\text { Example: }\
\begin{array} { | l | l | l | r | l | } 
\hline & \text { Column } 1 & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } & \text { Permanent } \
\hline
\end{array}
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Capital } & & & & \
\hline
\end{array}$$

Accepted Answer

None

Exam 5: The Accounting Cycle Completed

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

After posting adjusting entries,the temporary accounts will be set back to zero.

B.Benson's worksheet showed the revenue account,Rental Fees,$1,300.The journal entry to close the account is:

The balance in the Rent Expense account on the worksheet was $120.The journal entry to close the Rent Expense account is:

M.Smuts showed a net income of $6,000.The entry to close the Income Summary account would include a:

Tina's Event Planning bought a computer worth $3,500 with an expected life of 5 years and a residual value of $750.What is the adjusting journal entry after the first year?

A summary of selected ledger accounts appear below for S.Ball for the current calendar year. Answer the following questions. 1.What was the total amount of withdrawals for the year? 2.What was the net income? 3.What was the total revenue? 4.What were the total expenses?

Nominal accounts are called temporary accounts because their balances are not carried forward to the next accounting period.

Which of the following sequence of actions describes the proper order in the accounting cycle?

Why will the Income Summary account never appear on a financial statement?

Closing entries will update the Capital account to the same figure that is on the balance sheet for that date.

Determine the ending owner's equity of a business having a beginning owner's equity of $4,200,withdrawals of $1,500,and after closing the revenues and expenses Income Summary has a credit balance of $4,750. $ ________

There are 7 closing entries.

Closing entries will:

Which of the following is a real account?

The Withdrawals account is closed to Income Summary.

Revenues and expenses are closed to the Income Summary account.

How do you close a revenue account?

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

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