Question 1

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 2

A post-closing trial balance contains only asset and liability accounts.

Accepted Answer

A) True 
 B)False

Question 3

Prepare an income statement and a retained earnings statement for the month ended September 30, 2011, from the T accounts below of Carson Company.

Accepted Answer

The answer of Prepare an income statement and a retained...

Question 4

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs:
   Journalize the entries to close the appropriate accounts.

Accepted Answer

The answer of After all adjustments have been made, but...

Question 5

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

Accepted Answer

A)  debit Income Summary, $141,000; credit Fees Earned, $141,000 
B)  debit Retained Earnings, $141,000; credit Fees Earned, $141,000 
C)  debit Fees Earned, $141,000; credit Income Summary, $141,000 
D)  credit Fees Earned, $141,000; credit Retained Earnings, $141,000 
A)  debit Income Summary, $141,000; credit Fees Earned, $141,000 
B)  debit Retained Earnings, $141,000; credit Fees Earned, $141,000 
C)  debit Fees Earned, $141,000; credit Income Summary, $141,000 
D)  credit Fees Earned, $141,000; credit Retained Earnings, $141,000

Question 6

Which one of the steps below is not aided by the preparation of the work sheet?

Accepted Answer

A)  preparing the adjusted trial balance 
B)  posting to the general ledger 
C)  preparing the financial statements 
D)  preparing the closing entries 
A)  preparing the adjusted trial balance 
B)  posting to the general ledger 
C)  preparing the financial statements 
D)  preparing the closing entries

Question 7

The work sheet is considered a part of the formal accounting records.

Accepted Answer

A) True 
 B)False

Question 8

In a computerized accounting system, a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

Accepted Answer

A) True 
 B)False

Question 9

The income statement should be prepared

Accepted Answer

A)  before the retained earnings statement and balance sheet 
B)  after the retained earnings statement and before the balance sheet 
C)  after the retained earnings statement and balance sheet 
D)  after the balance sheet and before the retained earnings statement 
A)  before the retained earnings statement and balance sheet 
B)  after the retained earnings statement and before the balance sheet 
C)  after the retained earnings statement and balance sheet 
D)  after the balance sheet and before the retained earnings statement

Question 10

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Accepted Answer

A)  Supplies Expense 
B)  Accumulated Depreciation 
C)  Prepaid Insurance 
D)  Unearned Rent 
A)  Supplies Expense 
B)  Accumulated Depreciation 
C)  Prepaid Insurance 
D)  Unearned Rent

Question 11

A post-closing trial balance should be prepared before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 12

The following is the adjusted trial balance for Sandeep Company.
   Prepare closing entries and the post closing trial balance.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 13

Complete the following work sheet for Danilo Enterprises.
Danilo Enterprises
Work Sheet
For the Year Ended December 31, 2011

Accepted Answer

The answer of Complete the following work sheet for Danilo...

Question 14

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 15

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

Accepted Answer

A) True 
 B)False

Question 16

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Accepted Answer

A) True 
 B)False

Question 17

The usual presentation of the retained earnings statement is (1) beginning retained earnings, (2) net income or loss, (3) dividends (4) ending retained earnings.

Accepted Answer

A) True 
 B)False

Question 18

The dividends account is closed to the income summary account.

Accepted Answer

A) True 
 B)False

Question 19

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 20

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows:
   Prepare the entry required to close the dividends account at the end of the period.

Accepted Answer

The answer of Beachside Realty rents condominiums and furnishings. It's...

Which of the following is not true about closing entries?

A post-closing trial balance contains only asset and liability accounts.

Prepare an income statement and a retained earnings statement for the month ended September 30, 2011, from the T accounts below of Carson Company.

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: Journalize the entries to close the appropriate accounts.

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

Which one of the steps below is not aided by the preparation of the work sheet?

The work sheet is considered a part of the formal accounting records.

In a computerized accounting system, a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

The income statement should be prepared

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

A post-closing trial balance should be prepared before the financial statements are prepared.

The following is the adjusted trial balance for Sandeep Company. Prepare closing entries and the post closing trial balance.

Complete the following work sheet for Danilo Enterprises. Danilo Enterprises Work Sheet For the Year Ended December 31, 2011

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

The usual presentation of the retained earnings statement is (1) beginning retained earnings, (2) net income or loss, (3) dividends (4) ending retained earnings.

The dividends account is closed to the income summary account.

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the dividends account at the end of the period.

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

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Exam 4: Completing the Accounting Cycle

Which of the following is not true about closing entries?

A post-closing trial balance contains only asset and liability accounts.

Prepare an income statement and a retained earnings statement for the month ended September 30, 2011, from the T accounts below of Carson Company.

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: Journalize the entries to close the appropriate accounts.

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

Which one of the steps below is not aided by the preparation of the work sheet?

The work sheet is considered a part of the formal accounting records.

In a computerized accounting system, a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.

The income statement should be prepared

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

A post-closing trial balance should be prepared before the financial statements are prepared.

The following is the adjusted trial balance for Sandeep Company. Prepare closing entries and the post closing trial balance.

Complete the following work sheet for Danilo Enterprises. Danilo Enterprises Work Sheet For the Year Ended December 31, 2011

The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

The balances of the equity accounts from the Adjusted Trial Balance columns of the work sheet are extended to the Retained Earnings Statement columns.

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

The usual presentation of the retained earnings statement is (1) beginning retained earnings, (2) net income or loss, (3) dividends (4) ending retained earnings.

The dividends account is closed to the income summary account.

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the dividends account at the end of the period.

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

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