Question 1

Match the terms with the definitions.
-Prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts.

Accepted Answer

A)  account form of balance sheet
B)  accounting cycle
C)  classified balance sheet
D)  closing process
E)  current assetsF) current liabilitiesG) Income SummaryH) long-term liabilitiesI) operating cycleJ) permanent accountsK) post-closing trial balanceL) property, plant, and equipmentM) report form of balance sheetN) temporary accounts

Question 2

Adjustments at the end of the period are not formally entered in the journal or posted to the accounts.

Accepted Answer

A) True 
 B)False

Question 3

The income summary account is an account used only during the closing process.

Accepted Answer

A) True 
 B)False

Question 4

The journal entry to close the income summary account (showing a net loss) includes

Accepted Answer

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

Question 5

Long-term liabilities may also be called long-term debt.

Accepted Answer

A) True 
 B)False

Question 6

Match the terms with the definitions.
-Assets that are expected to serve the business for many years.

Accepted Answer

A)  account form of balance sheet
B)  accounting cycle
C)  classified balance sheet
D)  closing process
E)  current assetsF) current liabilitiesG) Income SummaryH) long-term liabilitiesI) operating cycleJ) permanent accountsK) post-closing trial balanceL) property, plant, and equipmentM) report form of balance sheetN) temporary accounts

Question 7

Match the terms with the definitions.
-Cash and assets that will be converted into cash or consumed within either one year or the normal operating cycle of the business,whichever is longer.

Accepted Answer

A)  account form of balance sheet
B)  accounting cycle
C)  classified balance sheet
D)  closing process
E)  current assetsF) current liabilitiesG) Income SummaryH) long-term liabilitiesI) operating cycleJ) permanent accountsK) post-closing trial balanceL) property, plant, and equipmentM) report form of balance sheetN) temporary accounts

Question 8

The ____________________ is prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts.

Accepted Answer

post-closi...

Question 9

The journal entry to close the income summary account (showing a profit) includes

Accepted Answer

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

Question 10

The three types of business activities are operating activities,investing activities,and capital activities.

Accepted Answer

A) True 
 B)False

Question 11

The ____________________ process gives zero balances to the temporary accounts so that they can accumulate information for the next accounting period.

Accepted Answer

The answer of The ____________________ process gives zero balances to...

Question 12

A balance sheet that classifies (or groups)items by similarities is called a unified balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

The purpose and use of the income summary account is to summarize the difference between revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms with the definitions.
-Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet.

Accepted Answer

A)  account form of balance sheet
B)  accounting cycle
C)  classified balance sheet
D)  closing process
E)  current assetsF) current liabilitiesG) Income SummaryH) long-term liabilitiesI) operating cycleJ) permanent accountsK) post-closing trial balanceL) property, plant, and equipmentM) report form of balance sheetN) temporary accounts

Question 15

The account to which the drawing account is closed is called

Accepted Answer

A)   Revenue.
B)   Income Summary.
C)   Owner's Capital.
D)   Cash.

Question 16

The ____________________ account is a temporary account used in the closing process to summarize the effects of all revenue and expense accounts.

Accepted Answer

The answer of The ____________________ account is a temporary account...

Question 17

A mortgage on an office building is an example of a property,plant,and equipment asset.

Accepted Answer

A) True 
 B)False

Question 18

The body of the income statement consists of an itemized list of

Accepted Answer

A)   assets and liabilities.
B)   assets and owner's equity.
C)   cash and revenues.
D)   revenues and expenses.

Question 19

The order in which financial statements should be prepared is

Accepted Answer

A)   balance sheet,income statement,statement of owner's equity.
B)   income statement,balance sheet,statement of owner's equity.
C)   statement of owner's equity,balance sheet,income statement.
D)   income statement,statement of owner's equity,balance sheet.

Question 20

A post-closing trial balance is used to prove the equality of debit and credit balances in the general ledger accounts after the closing entries have been posted.

Accepted Answer

A) True 
 B)False

Exam 6: Financial Statements and the Closing Process

The journal entry to close the income summary account (showing a profit) includes

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts.

Correct AnswerverifiedShow Answer

The three types of business activities are operating activities,investing activities,and capital activities.

Correct AnswerverifiedShow Answer

The income summary account is an account used only during the closing process.

Correct AnswerverifiedShow Answer

A post-closing trial balance is used to prove the equality of debit and credit balances in the general ledger accounts after the closing entries have been posted.

Correct AnswerverifiedShow Answer

A balance sheet that classifies (or groups)items by similarities is called a unified balance sheet.

Correct AnswerverifiedShow Answer

The ____________________ process gives zero balances to the temporary accounts so that they can accumulate information for the next accounting period.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Cash and assets that will be converted into cash or consumed within either one year or the normal operating cycle of the business,whichever is longer.

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The body of the income statement consists of an itemized list of

Correct AnswerverifiedShow Answer

The order in which financial statements should be prepared is

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The account to which the drawing account is closed is called

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The ____________________ account is a temporary account used in the closing process to summarize the effects of all revenue and expense accounts.

Correct AnswerverifiedShow Answer

Long-term liabilities may also be called long-term debt.

Correct AnswerverifiedShow Answer

The purpose and use of the income summary account is to summarize the difference between revenues and expenses.

Correct AnswerverifiedShow Answer

The journal entry to close the income summary account (showing a net loss) includes

Correct AnswerverifiedShow Answer

Adjustments at the end of the period are not formally entered in the journal or posted to the accounts.

Correct AnswerverifiedShow Answer

The ____________________ is prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts.

Correct Answerverifiedpost-closi...View AnswerShow Answer

Match the terms with the definitions. -Assets that are expected to serve the business for many years.

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A mortgage on an office building is an example of a property,plant,and equipment asset.

Correct AnswerverifiedShow Answer

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