Question 1

When the balance in the Income Summary account is a debit,the company has:

Accepted Answer

A) incurred a net loss. 
B) incurred a net income. 
C) had more revenue than expenses. 
D) made an error in their closing entries. 
A) incurred a net loss. 
B) incurred a net income. 
C) had more revenue than expenses. 
D) made an error in their closing entries.

Question 2

From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31,prepare the closing entries without explanation,assuming that a $1,000 withdrawal was made during the period.
 $\begin{array}{c}
\begin{array}{lll}
\
\underline{\text {Account}}\
\text {Tutoring Fees}\
\text {Wages Expense}\
\text {Rent Expense}\
\text {Supplies Expense}\
\text {Insurance Expense}\
\
\text {Net Income}\

\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\
700 \
600 \
450 \
\underline{250}\
2,000 \
\underline{1,450}\
\underline{\$ 3,450}
\end{array}
\begin{array}{lll}
\underline{\text {Income Statemen}}\
\underline{\text {Credit}}\
3,450\
\
\

-----\
\underline{3,450} \
-----\
\underline{\$ 3,450} 
\end{array}
\end{array}$

Accepted Answer

None

Question 3

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).
$$\begin{array}{l}
\text { Example: }\
\begin{array} { | l | l | l | r | l | } 
\hline & \text { Column } 1 & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } & \text { Permanent } \
\hline
\end{array}
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Supplies } & & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 4

From the following accounts,prepare in proper form a post-closing trial balance for Logan's Pet Sitting on December 31.(Note: These balances are before closing).
 $$\begin{array} { l l } 
\text { Logan, Capital } & \$ 7,400 \
\text { Cash } & 2,000 \
\text { Accumulated Depreciation } & 1,500 \
\text { Equipment } & 5,000 \
\text { Accounts Payable } & 990 \
\text { Logan, Withdrawals } & 1,000 \
\text { Wages Expense } & 2,250 \
\text { Supplies Expense } & 775 \
\text { Accounts Receivable } & 3,125 \
\text { Personal Trainer Fees } & 4,350
\end{array}$$

Accepted Answer

The answer of From the following accounts,prepare in proper form...

Question 5

How do you close the expense accounts?

Accepted Answer

A) Debit Capital; credit the expense accounts 
B) Credit Capital; debit the expense accounts 
C) Credit Income Summary; debit the expense accounts 
D) Debit Income Summary; credit the expense accounts 
A) Debit Capital; credit the expense accounts 
B) Credit Capital; debit the expense accounts 
C) Credit Income Summary; debit the expense accounts 
D) Debit Income Summary; credit the expense accounts

Question 6

The post-closing trial balance is used to determine if the ledger is in balance after closing.

Accepted Answer

A) True 
 B)False

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).
$$\begin{array}{l}
\text { Example: }\
\begin{array} { | l | l | l | r | l | } 
\hline & \text { Column } 1 & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } & \text { Permanent } \
\hline
\end{array}
\end{array}$$
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Withdrawals } & & & & \
\hline
\end{array}$$

Accepted Answer

None

Question 8

The business failed to close any of the revenue accounts.The result of this error is that:

Accepted Answer

A) revenues will be understated. 
B) capital will be understated. 
C) the assets will be overstated. 
D) the liabilities will be overstated. 
A) revenues will be understated. 
B) capital will be understated. 
C) the assets will be overstated. 
D) the liabilities will be overstated.

Question 9

The post-closing trial balance contains the true ending figure for Capital.

Accepted Answer

A) True 
 B)False

Question 10

The following normal account balances were found on the general ledger before closing entries were prepared: $$\begin{array} { | l | l | } 
\hline \text { Revenue } \$ 600 & \text { Cash } \$ 500 \
\hline \text { Expenses } \$ 400 & \text { Accounts Receivable } \$ 350 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$ After closing entries are posted,what is the balance in the Cash account?

Accepted Answer

A) $800 
B) $0 
C) $300 
D) Closing entries do not affect the Cash account. 
A) $800 
B) $0 
C) $300 
D) Closing entries do not affect the Cash account.

Question 11

Real accounts are those accounts with balances that are brought forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) Fees Earned 
B) Rent Expense 
C) Owner's Capital 
D) Income Summary 
A) Fees Earned 
B) Rent Expense 
C) Owner's Capital 
D) Income Summary

Question 13

The final step in the accounting cycle is:

Accepted Answer

A) preparing the post-closing trial balance. 
B) preparing the financial statements. 
C) journalizing the closing entries. 
D) journalizing the adjusting entries. 
A) preparing the post-closing trial balance. 
B) preparing the financial statements. 
C) journalizing the closing entries. 
D) journalizing the adjusting entries.

Question 14

Which of the following accounts should not be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A) Salaries Expense 
B) Fees Earned 
C) Utilities Expense 
D) Withdrawals 
A) Salaries Expense 
B) Fees Earned 
C) Utilities Expense 
D) Withdrawals

Question 15

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

Accepted Answer

A) The company had a net income. 
B) The owner invested an additional amount. 
C) The owner made a withdrawal. 
D) All of these answers are correct. 
A) The company had a net income. 
B) The owner invested an additional amount. 
C) The owner made a withdrawal. 
D) All of these answers are correct.

Question 16

The adjusting entry for accrued salaries is to:

Accepted Answer

A) debit Salaries Expense; credit Salaries Payable. 
B) debit Salaries Expense; credit Cash. 
C) debit Salaries Payable; credit Salaries Expense. 
D) debit Cash; credit Salaries Expense. 
A) debit Salaries Expense; credit Salaries Payable. 
B) debit Salaries Expense; credit Cash. 
C) debit Salaries Payable; credit Salaries Expense. 
D) debit Cash; credit Salaries Expense.

Question 17

The Income Summary account shows debits of $19,000 and credits of $10,000.This results in a:

Accepted Answer

A) net income of $29,000. 
B) net loss of $29,000. 
C) net income of $9,000. 
D) net loss of $9,000. 
A) net income of $29,000. 
B) net loss of $29,000. 
C) net income of $9,000. 
D) net loss of $9,000.

Question 18

The Capital account debited and the withdrawals credited would be the result of:

Accepted Answer

A) closing the Income Summary account-there is a net income. 
B) closing the withdrawal account. 
C) closing the Income Summary account-there is a net loss. 
D) closing the expense accounts. 
A) closing the Income Summary account-there is a net income. 
B) closing the withdrawal account. 
C) closing the Income Summary account-there is a net loss. 
D) closing the expense accounts.

Question 19

When closing the Income Summary account when there is a net income:

Accepted Answer

A) Capital would increase. 
B) Capital would decrease. 
C) Capital would remain the same. 
D) None of these are correct. 
A) Capital would increase. 
B) Capital would decrease. 
C) Capital would remain the same. 
D) None of these are correct.

When the balance in the Income Summary account is a debit,the company has:

How do you close the expense accounts?

The post-closing trial balance is used to determine if the ledger is in balance after closing.

The business failed to close any of the revenue accounts.The result of this error is that:

The post-closing trial balance contains the true ending figure for Capital.

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 600 Cash \ 500 Expenses \ 400 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted,what is the balance in the Cash account?

Real accounts are those accounts with balances that are brought forward to the next accounting period.

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

The final step in the accounting cycle is:

Which of the following accounts should not be closed to Income Summary at the end of the fiscal year?

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

The adjusting entry for accrued salaries is to:

The Income Summary account shows debits of $19,000 and credits of $10,000.This results in a:

The Capital account debited and the withdrawals credited would be the result of:

When closing the Income Summary account when there is a net income:

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

Exam 5: The Accounting Cycle Completed

When the balance in the Income Summary account is a debit,the company has:

How do you close the expense accounts?

The post-closing trial balance is used to determine if the ledger is in balance after closing.

The business failed to close any of the revenue accounts.The result of this error is that:

The post-closing trial balance contains the true ending figure for Capital.

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue \ 600 Cash \ 500 Expenses \ 400 Accounts Receivable \ 350 Capital \ 7,500 Withdrawals \ 1,000 After closing entries are posted,what is the balance in the Cash account?

Real accounts are those accounts with balances that are brought forward to the next accounting period.

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

The final step in the accounting cycle is:

Which of the following accounts should not be closed to Income Summary at the end of the fiscal year?

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

The adjusting entry for accrued salaries is to:

The Income Summary account shows debits of $19,000 and credits of $10,000.This results in a:

The Capital account debited and the withdrawals credited would be the result of:

When closing the Income Summary account when there is a net income:

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