Question 1

The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as

Accepted Answer

A)  input. 
B)  processing. 
C)  output. 
D)  the accounting cycle.

Question 2

After the closing entries are journalized and posted, which of the following accounts would NOT have a balance?

Accepted Answer

A)  Cash 
B)  Office Supplies 
C)  Accounts Payable 
D)  Service Revenue

Question 3

Revenue and expense account are permanent accounts.

Accepted Answer

A) True 
 B)False

Question 4

A separate explanation of each closing entry is necessary.

Accepted Answer

A) True 
 B)False

Question 5

After the closing entries have been posted, which of the following accounts would still have a balance?

Accepted Answer

A)  Miscellaneous Revenues 
B)  Accumulated Depreciation Equipment 
C)  Salaries Expense 
D)  Supplies Expense

Question 6

Revenues and expenses are temporary accounts and are closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 7

The amounts in the financial statements must agree with the ledger account balances.

Accepted Answer

A) True 
 B)False

Question 8

A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.

Accepted Answer

A) True 
 B)False

Question 9

Match the terms with the definitions.
-The period of time required to purchase supplies and services and convert them back into cash.

Accepted Answer

A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts

Question 10

Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000. Capital at the end of the month is

Accepted Answer

A)  $3,000. 
B)  $2,000. 
C)  $7,000. 
D)  $5,000.

Question 11

Expenses on the income statement could be listed in alphabetical order by dollar amount.

Accepted Answer

A) True 
 B)False

Question 12

Which step is taken at the end of the accounting period?

Accepted Answer

A)  analyze source documents 
B)  post to the general ledger accounts 
C)  prepare a trial balance 
D)  prepare a post-closing trial balance

Exam 6: Financial Statements and the Closing Process

The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as

After the closing entries are journalized and posted, which of the following accounts would NOT have a balance?

Revenue and expense account are permanent accounts.

A separate explanation of each closing entry is necessary.

After the closing entries have been posted, which of the following accounts would still have a balance?

Revenues and expenses are temporary accounts and are closed at the end of the accounting period.

The amounts in the financial statements must agree with the ledger account balances.

A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.

Match the terms with the definitions. -The period of time required to purchase supplies and services and convert them back into cash.

Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000. Capital at the end of the month is

Expenses on the income statement could be listed in alphabetical order by dollar amount.

Which step is taken at the end of the accounting period?