Question 1

Which of the following account(s)  would remain open after closing entries?

Accepted Answer

A)   Accounts Payable
B)   Equipment
C)   Owner's capital
D)   All of the answers listed

Question 2

The first step in the closing entries is to close the revenue account(s) into the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)   owner's drawing
B)   Rent Expense
C)   Accumulated Depreciation
D)   All of the accounts listed would be shown.

Question 4

Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using?

Accepted Answer

A)   accrual basis of accounting
B)   cash basis of accounting
C)   hybrid basis of accounting
D)   consolidated basis of accounting

Question 5

___________ are prepared during the fiscal year and cover a period of time less than twelve months.

Accepted Answer

A)   Fiscal statements
B)   Annual statements
C)   Interim statements
D)   Closing statements

Question 6

List and explain at least two advantages and disadvantages of a computerized accounting system.

Accepted Answer

Advantages:
Automatic-automatical...

Question 7

If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.

Accepted Answer

A) True 
 B)False

Question 8

Entries required to clear or zero the balances of temporary accounts at the end of the year are called ____________ entries.

Accepted Answer

A)   adjusting
B)   journal
C)   closing
D)   clearing

Question 9

The owner's Capital account will always have a zero balance after the closing entries are posted.

Accepted Answer

A) True 
 B)False

Question 10

If expenses are greater than revenue, the Income Summary account will be closed by a debit to

Accepted Answer

A)   Cash and a credit to Income Summary.
B)   Income Summary and a credit to Cash.
C)   Capital and a credit to Income Summary.
D)   Income Summary and a credit to Capital.
E)   Income Summary and a credit to Drawing.

Question 11

Which of the following can be prepared by taking the account balances from the general ledger after closing?

Accepted Answer

A)   Income statement
B)   Post-closing trial balance
C)   Balance sheet
D)   Statement of owner's equity
E)   Adjusted trial balance

Question 12

Match the terms that follow with the correct definitions.
-Financial statements prepared during the fiscal year for a period of less than twelve months

Accepted Answer

A)  Interim statements
B)  Closing entries
C)  Expenses
D)  Real or permanent accounts
E)  Drawing accountF) Income SummaryG) Post-closing trial balanceH) Accounting cycleI) Expense and revenueJ) Temporary-equity accounts

Question 13

When using the work sheet to prepare closing entries, which of the following statement is correct?

Accepted Answer

A)   You should use all balances listed in the balance sheet columns.
B)   You should use all balances listed in the balance sheet columns and the income statement columns.
C)   You should use all balances listed in the income statement columns.
D)   None of the answers listed

Question 14

A post-closing trial balance will include only permanent accounts.

Accepted Answer

A) True 
 B)False

Question 15

The post-closing trial balance contains only asset, liability, and revenue accounts.

Accepted Answer

A) True 
 B)False

Question 16

The December 31 year-end ledger balances for Quick Delivery are presented below.
Instructions:
Journalize the four closing entries in the proper order in the general journal.

Accepted Answer

The answer of The December 31 year-end ledger balances for...

Question 17

Which of the following statements is true concerning the steps in the accounting cycle?

Accepted Answer

A)   Preparing a trial balance should be completed before recording business transactions into a journal.
B)   Journalizing and posting the closing entries should be completed after preparing financial statements.
C)   Completing the work sheet should be completed after preparing the financial statements.
D)   Preparing a post-closing trial balance should be completed before completing the work sheet.

Question 18

If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.

Accepted Answer

A) True 
 B)False

Question 19

How would the company's books be affected if the company's accountant failed to make any closing entries?

Accepted Answer

If closing entries were not made, after ...

Question 20

The Income Summary account has a debit balance of $10,000 prior to closing. The owner's Drawing account has a balance of $7,000 before closing. The owner's Capital account will

Accepted Answer

A)   decrease $10,000.
B)   increase $17,000.
C)   increase $10,000.
D)   decrease $17,000.
E)   increase $7,000.

Exam 5: Closing Entries and the Post-Closing Trial Balance

If expenses are greater than revenue, the Income Summary account will be closed by a debit to

Correct AnswerverifiedShow Answer

A post-closing trial balance will include only permanent accounts.

Correct AnswerverifiedShow Answer

The December 31 year-end ledger balances for Quick Delivery are presented below. Instructions: Journalize the four closing entries in the proper order in the general journal.

Correct AnswerverifiedShow Answer

How would the company's books be affected if the company's accountant failed to make any closing entries?

Correct AnswerverifiedIf closing entries were not made, after ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Match the terms that follow with the correct definitions. -Financial statements prepared during the fiscal year for a period of less than twelve months

Correct AnswerverifiedShow Answer

The first step in the closing entries is to close the revenue account(s) into the Income Summary account.

Correct AnswerverifiedShow Answer

If the totals of the post-closing trial balance are not equal, the first step in tracking down the error is to verify postings to the ledger.

Correct AnswerverifiedShow Answer

The post-closing trial balance contains only asset, liability, and revenue accounts.

Correct AnswerverifiedShow Answer

The Income Summary account has a debit balance of $10,000 prior to closing. The owner's Drawing account has a balance of $7,000 before closing. The owner's Capital account will

Correct AnswerverifiedShow Answer

List and explain at least two advantages and disadvantages of a computerized accounting system.

Correct AnswerverifiedAdvantages:Automatic-automatical...View AnswerShow Answer

___________ are prepared during the fiscal year and cover a period of time less than twelve months.

Correct AnswerverifiedShow Answer

The owner's Capital account will always have a zero balance after the closing entries are posted.

Correct AnswerverifiedShow Answer

Which of the following can be prepared by taking the account balances from the general ledger after closing?

Correct AnswerverifiedShow Answer

Entries required to clear or zero the balances of temporary accounts at the end of the year are called ____________ entries.

Correct AnswerverifiedShow Answer

Which of the following statements is true concerning the steps in the accounting cycle?

Correct AnswerverifiedShow Answer

Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using?

Correct AnswerverifiedShow Answer

If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.

Correct AnswerverifiedShow Answer

When using the work sheet to prepare closing entries, which of the following statement is correct?

Correct AnswerverifiedShow Answer

Which of the following account(s) would remain open after closing entries?

Correct AnswerverifiedShow Answer

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If closing entries were not made, after ...
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Advantages:
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