Question 1

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not true about closing entries?

Accepted Answer

A)  There are four closing entries that update the retained earnings account. 
B)  After the second closing entry, the income summary account is equal to the net income or (loss) for the period. 
C)  All real accounts are closed at the end of the period. 
D)  By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly. 
A)  There are four closing entries that update the retained earnings account. 
B)  After the second closing entry, the income summary account is equal to the net income or (loss) for the period. 
C)  All real accounts are closed at the end of the period. 
D)  By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly.

Question 3

Which of the following account groups are all considered nominal accounts?

Accepted Answer

A)  Cash, Retained Earnings, Wages Payable 
B)  Prepaid Insurance, Property, Plant & Equipment, Fees Earned 
C)  Capital Stock, Dividends, Income Summary 
D)  Rent Revenue, Fees Earned, Miscellaneous Expense 
A)  Cash, Retained Earnings, Wages Payable 
B)  Prepaid Insurance, Property, Plant & Equipment, Fees Earned 
C)  Capital Stock, Dividends, Income Summary 
D)  Rent Revenue, Fees Earned, Miscellaneous Expense

Question 4

Net income appears on the work sheet in the

Accepted Answer

A)  debit column of the Balance Sheet columns 
B)  debit column of the Adjustments columns 
C)  debit column of the Income Statement columns 
D)  credit column of the Income Statement columns 
A)  debit column of the Balance Sheet columns 
B)  debit column of the Adjustments columns 
C)  debit column of the Income Statement columns 
D)  credit column of the Income Statement columns

Question 5

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Accepted Answer

A) True 
 B)False

Question 6

Closing entries are entered directly on to the work sheet.

Accepted Answer

A) True 
 B)False

Question 7

What is the last account that should be listed in the post-closing trial balance?

Accepted Answer

A)  Income Summary 
B)  Retained Earnings 
C)  Cash 
D)  Fees Earned 
A)  Income Summary 
B)  Retained Earnings 
C)  Cash 
D)  Fees Earned

Question 8

The balance in the retained earnings account on the work sheet will equal the amount presented in the balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

Use the work sheet for Finley Company to answer the questions that follow.  
The entry to close Dividends would be

Accepted Answer

A)  debit Retained Earnings, $3,000; credit Dividends, $3,000 
B)  debit Retained Earnings, $12,000; credit Dividends, $12,000 
C)  debit Dividends, $3,000; credit Retained Earnings, $3,000 
D)  debit Dividends, $12,000; credit Retained Earnings, $12,000 
A)  debit Retained Earnings, $3,000; credit Dividends, $3,000 
B)  debit Retained Earnings, $12,000; credit Dividends, $12,000 
C)  debit Dividends, $3,000; credit Retained Earnings, $3,000 
D)  debit Dividends, $12,000; credit Retained Earnings, $12,000

Question 10

Financial statements should be prepared before the closing entries are journalized and posted.

Accepted Answer

A) True 
 B)False

Question 11

List/describe the four closing entries in the order that they should occur.

Accepted Answer

1. Close revenues to Income Su

Question 12

On the work sheet, the capital stock and dividends account balances are extended to the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 13

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014.   The entry required to close the revenue accounts at the end of the period includes a:

Accepted Answer

A)  debit to Income Summary for $37,000 
B)  credit to Income Summary for $38,300 
C)  debit to Income Summary for $38,200 
D)  credit to Income Summary for $37,000 
A)  debit to Income Summary for $37,000 
B)  credit to Income Summary for $38,300 
C)  debit to Income Summary for $38,200 
D)  credit to Income Summary for $37,000

Question 14

The income summary account is also known as the clearing account.

Accepted Answer

A) True 
 B)False

Question 15

Hakik Enterprises offers rug cleaning services to business clients. Below is the work sheet containing the trial balance for the month ended July 31, 2012.
  
 Journalize adjusting entries based on the work sheet trial balance and the adjustment data provided below.
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.
b) Accrued wages, $2.
c) Unused supplies on hand, $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

Accepted Answer

The answer of Hakik Enterprises offers rug cleaning services to...

Question 16

On January 1, 2014, the retained earnings account of Crystal Pool Service Company had a balance of $252,000. During the year, the company issued an additional $20,000 of capital stock and paid $52,400 in dividends. For the year ended December 31, 2014, Crystal Pool Service Company reported a net income of $73,200. Prepare a retained earnings statement for the year ended December 31, 2014.

Accepted Answer

The answer of On January 1, 2014, the retained earnings...

Question 17

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

Accepted Answer

A)  in the Income Statement columns of the work sheet 
B)  in the statement of cash flows 
C)  in the general ledger 
D)  in the Adjustments columns of the work sheet 
A)  in the Income Statement columns of the work sheet 
B)  in the statement of cash flows 
C)  in the general ledger 
D)  in the Adjustments columns of the work sheet

Question 18

Match between columns
                        Premises: Accounts Receivable
Unearned Revenues
Notes Payable (due in 2014)
Accumulated Depreciation
Retained Earnings
Equipment
Mortgage Payable
Cash

Accepted Answer

The Answer of current liabilities and current assets and stockholders' is...

Question 19

Which of the following is not showed on the retained earnings statement of a company?

Accepted Answer

A)  Ending balance of retained earnings 
B)  Net income of the company 
C)  Dividends paid by the company 
D)  Additional capital stock issued by the company 
A)  Ending balance of retained earnings 
B)  Net income of the company 
C)  Dividends paid by the company 
D)  Additional capital stock issued by the company

Question 20

Land is an example of a plant asset.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Once an account has been closed for the period, inserting a line in the balance columns zeros out the account, making it ready for the following period.

Which of the following is not true about closing entries?

Which of the following account groups are all considered nominal accounts?

Net income appears on the work sheet in the

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Closing entries are entered directly on to the work sheet.

What is the last account that should be listed in the post-closing trial balance?

The balance in the retained earnings account on the work sheet will equal the amount presented in the balance sheet.

Use the work sheet for Finley Company to answer the questions that follow. The entry to close Dividends would be

Financial statements should be prepared before the closing entries are journalized and posted.

List/describe the four closing entries in the order that they should occur.

On the work sheet, the capital stock and dividends account balances are extended to the Balance Sheet columns.

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014. The entry required to close the revenue accounts at the end of the period includes a:

The income summary account is also known as the clearing account.

When preparing the retained earnings statement, the beginning retained earnings balance can always be found

Which of the following is not showed on the retained earnings statement of a company?

Land is an example of a plant asset.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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