Question 1

Interpreting the financial statements is the last step in the accounting cycle.

Accepted Answer

A) True 
 B)False

Question 2

The partial worksheet for the Roberts Company showed the following data on October 31, 2013. Record the closing entries on page 9 of a general journal.

Accepted Answer

The answer of The partial worksheet for the Roberts Company...

Question 3

Which of the following has a normal credit balance?

Accepted Answer

A)  Accounts Receivable 
B)  Accounts Payable 
C)  Supplies Expense 
D)  T. Stark, Drawing 
A)  Accounts Receivable 
B)  Accounts Payable 
C)  Supplies Expense 
D)  T. Stark, Drawing

Question 4

The ____________________ is a series of steps performed during each fiscal period to classify and record transactions and summarize financial data for a business.

Accepted Answer

The answer of The ____________________ is a series of steps...

Question 5

The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be

Accepted Answer

A)  debit Capital $11,000; credit Income Summary $11,000 
B)  debit Income Summary $11,000; credit Capital $11,000 
C)  debit Revenue $64,000; credit Expenses $53,000 
D)  debit Income Summary $11,000; credit Drawing $11,000 
A)  debit Capital $11,000; credit Income Summary $11,000 
B)  debit Income Summary $11,000; credit Capital $11,000 
C)  debit Revenue $64,000; credit Expenses $53,000 
D)  debit Income Summary $11,000; credit Drawing $11,000

Question 6

Which of the following accounts would be closed?

Accepted Answer

A)  Accounts Receivable 
B)  Accumulated Depreciation 
C)  Supplies Expense 
D)  Joan Wilson, Capital 
A)  Accounts Receivable 
B)  Accumulated Depreciation 
C)  Supplies Expense 
D)  Joan Wilson, Capital

Question 7

"Income and Expense Summary" is another name for the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 8

The entry to close the Income Summary account may include

Accepted Answer

A)  a debit to Income Summary and a credit to the owner's capital account. 
B)  a debit to Income Summary and a credit to Cash. 
C)  a debit to Cash and a credit to Income Summary. 
D)  a debit to Income Summary and a credit to the owner's drawing account. 
A)  a debit to Income Summary and a credit to the owner's capital account. 
B)  a debit to Income Summary and a credit to Cash. 
C)  a debit to Cash and a credit to Income Summary. 
D)  a debit to Income Summary and a credit to the owner's drawing account.

Question 9

On December 31, the ledger of Davis Company contained the following account balances:   All the accounts have normal balances. Journalize the closing entries. Use 11 as the general journal page number.

Accepted Answer

The answer of On December 31, the ledger of Davis...

Question 10

Which of the following accounts is not closed?

Accepted Answer

A)  Cash 
B)  Fees Income 
C)  Rent Expense 
D)  Joan Wilson, Drawing 
A)  Cash 
B)  Fees Income 
C)  Rent Expense 
D)  Joan Wilson, Drawing

Question 11

The postclosing trial balance contains balance sheet accounts only.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is correct?

Accepted Answer

A)  The Balance Sheet section of the worksheet contains the data that is used to make closing entries. 
B)  The balance of the owner's drawing account will appear on the postclosing trial balance. 
C)  Closing entries are entered directly on the worksheet. 
D)  Preparation of the postclosing trial balance is the last step in the end-of-period routine. 
A)  The Balance Sheet section of the worksheet contains the data that is used to make closing entries. 
B)  The balance of the owner's drawing account will appear on the postclosing trial balance. 
C)  Closing entries are entered directly on the worksheet. 
D)  Preparation of the postclosing trial balance is the last step in the end-of-period routine.

Question 13

Which of the following statements is not correct?

Accepted Answer

A)  Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. 
B)  The Income Summary account is a temporary owner's equity account. 
C)  The Income Summary account is used only at the end of an accounting period to help with the closing procedure. 
D)  The owner's drawing account is closed to the Income Summary Statement. 
A)  Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. 
B)  The Income Summary account is a temporary owner's equity account. 
C)  The Income Summary account is used only at the end of an accounting period to help with the closing procedure. 
D)  The owner's drawing account is closed to the Income Summary Statement.

Question 14

Managers often consult financial statements for specific types of information. Indicate whether each of the following items would appear on the income statement, statement of owner's equity, or the balance sheet. Note that an item may appear on more than one statement. The first item is completed as an example.

Accepted Answer

The answer of Managers often consult financial statements for specific...

Question 15

The owner's drawing account is closed by debiting

Accepted Answer

A)  the owner's drawing account and crediting the owner's capital account. 
B)  the owner's capital account and crediting the owner's drawing account. 
C)  Income Summary and crediting the owner's drawing account. 
D)  the owner's drawing account and crediting Income Summary. 
A)  the owner's drawing account and crediting the owner's capital account. 
B)  the owner's capital account and crediting the owner's drawing account. 
C)  Income Summary and crediting the owner's drawing account. 
D)  the owner's drawing account and crediting Income Summary.

Question 16

Withdrawals by the owner for personal use do not affect net income or net loss of the business.

Accepted Answer

A) True 
 B)False

Question 17

A postclosing trial balance could include all of the following except the

Accepted Answer

A)  owner's capital account. 
B)  Cash account. 
C)  Fees Income account. 
D)  Accounts Receivable account. 
A)  owner's capital account. 
B)  Cash account. 
C)  Fees Income account. 
D)  Accounts Receivable account.

Question 18

On December 31 the Income Summary account of Cook Company has a debit balance of $18,000 after revenue of $49,000 and expenses of $67,000 were closed to the account. Maria Cook, Drawing has a debit balance of $23,000 and Maria Cook, Capital has a credit balance of $84,000. Record the journal entries necessary to complete closing the accounts. Use 22 as the general journal page number. Then, post the closing entries to the Maria Cook, Capital account.

Accepted Answer

The answer of On December 31 the Income Summary account...

Question 19

Danos Company's partial worksheet for the month ended December 31, 2013, is shown below. Open the owner's capital account (account number 301) in the general ledger and record the December 1, 2013, balance of $64,000 shown on the worksheet. Journalize the closing entries on page 8 of a general journal. Post the closing entries to the owner's capital account. Prepare a postclosing trial balance.

Accepted Answer

The answer of Danos Company's partial worksheet for the month...

Question 20

At the end of the accounting period, the balances of the revenue and expense accounts are transferred to the ____________________ account.

Accepted Answer

The answer of At the end of the accounting period,...

Interpreting the financial statements is the last step in the accounting cycle.

The partial worksheet for the Roberts Company showed the following data on October 31, 2013. Record the closing entries on page 9 of a general journal.

Which of the following has a normal credit balance?

The ____________________ is a series of steps performed during each fiscal period to classify and record transactions and summarize financial data for a business.

The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be

Which of the following accounts would be closed?

"Income and Expense Summary" is another name for the Income Summary account.

The entry to close the Income Summary account may include

On December 31, the ledger of Davis Company contained the following account balances: All the accounts have normal balances. Journalize the closing entries. Use 11 as the general journal page number.

Which of the following accounts is not closed?

The postclosing trial balance contains balance sheet accounts only.

Which of the following statements is correct?

Which of the following statements is not correct?

The owner's drawing account is closed by debiting

Withdrawals by the owner for personal use do not affect net income or net loss of the business.

A postclosing trial balance could include all of the following except the

At the end of the accounting period, the balances of the revenue and expense accounts are transferred to the ____________________ account.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters

Exam 6: Closing Entries and the Postclosing Trial Balance

Interpreting the financial statements is the last step in the accounting cycle.

The partial worksheet for the Roberts Company showed the following data on October 31, 2013. Record the closing entries on page 9 of a general journal.

Which of the following has a normal credit balance?

The ____________________ is a series of steps performed during each fiscal period to classify and record transactions and summarize financial data for a business.

The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be

Which of the following accounts would be closed?

"Income and Expense Summary" is another name for the Income Summary account.

The entry to close the Income Summary account may include

On December 31, the ledger of Davis Company contained the following account balances: All the accounts have normal balances. Journalize the closing entries. Use 11 as the general journal page number.

Which of the following accounts is not closed?

The postclosing trial balance contains balance sheet accounts only.

Which of the following statements is correct?

Which of the following statements is not correct?

The owner's drawing account is closed by debiting

Withdrawals by the owner for personal use do not affect net income or net loss of the business.

A postclosing trial balance could include all of the following except the

At the end of the accounting period, the balances of the revenue and expense accounts are transferred to the ____________________ account.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters