Question 1

The adjusted balances for Tomas Co. are listed below.
 Cash, $20,000
Accounts Receivable, $2,500
Prepaid Insurance, $3,500
Equipment, $15,000
Accumulated Depreciation, $2,000
Accounts Payable, $4,000
J. Tomas, Capital, $30,000
J. Tomas, Drawing, $10,000
Income from Services, $35,000
Wages Expense, $12,000
Rent Expense, $8,000
The entry to close Income Summary would involve a

Accepted Answer

A)   credit to Net Income, $15,000.
B)   debit to Income Summary, $15,000.
C)   debit to Net Income, $15,000.
D)   debit to J. Tomas, Capital, $15,000

Question 2

Revenue and expenses would not appear on a(n)

Accepted Answer

A)   unadjusted trial balance.
B)   adjusted trial balance.
C)   income statement.
D)   work sheet.
E)   post-closing trial balance.

Question 3

Match the terms that follow with the correct definitions.
-Account classifications that are closed into the Income Summary account

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 4

The closing process causes the account balance of which account to be zeroed out?

Accepted Answer

A)   Cash
B)   Account Payable
C)   Accumulated Depreciation
D)   R. Carson, Drawing

Question 5

The adjusted balances for Windsor Co. are listed below. ​
Cash, $10,000
Accounts Receivable, $1,250
Prepaid Insurance, $1,750
Equipment, $7,500
Accumulated Depreciation, $1,000
Accounts Payable, $2,000
T. Windsor, Capital, $15,000
J. Windsor, Drawing, $5,000
Income from Services, $17,500
Wages Expense, $6,000
Rent Expense, $4,000
​
After recording the closing entries, what would be the balance of the capital account?

Accepted Answer

A)   $35,000
B)   $12,500
C)   $17,500
D)   $10,000

Question 6

In the closing procedure, the expense account(s)  should be closed into the:

Accepted Answer

A)   Income Summary account.
B)   Net Income account.
C)   Expense Payable account.
D)   Drawings Account.

Question 7

The entry to close expenses would involve (a)

Accepted Answer

A)   debit to Income Summary
B)   debit to drawing.
C)   credit to net income.
D)   debits to expense accounts.

Question 8

Explain the differences between cash and accrual accounting methods.

Accepted Answer

The cash basis of accounting records rev...

Question 9

If Income Summary has a credit balance after closing revenue and expense accounts, this indicates a net loss.

Accepted Answer

A) True 
 B)False

Question 10

The Income Summary account balance should always increase after the closing entries are posted at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 11

The balance of the Drawing account is closed to the Capital account.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are all permanent accounts?

Accepted Answer

A)   Cash, Rent Expense, owner's drawing
B)   Accumulated Depreciation, Notes Payable, owner's drawing
C)   Cash, Prepaid Insurance, Notes Payable
D)   Owner's capital, owner's drawing, Rent Expense

Question 13

In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

Accepted Answer

A)   Balance Sheet columns
B)   Adjusted Trial Balance columns
C)   Income Statement columns
D)   Trial Balance columns
E)   Adjustments columns

Question 14

Rank the steps of the accounting cycle in the proper order of preparation.

Accepted Answer

The answer of Rank the steps of the accounting cycle...

Question 15

Match the terms that follow with the correct definitions.
-The debit to Income Summary represents the total

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 16

The _______________ requires that revenue is recorded when earned and expenses are recorded when incurred.

Accepted Answer

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

Question 17

Financial statements prepared during the fiscal year for periods of less than twelve months are called

Accepted Answer

A)   temporary statements.
B)   internal statements.
C)   interim statements.
D)   nominal statements.
E)   external statements.

Question 18

Match the terms that follow with the correct definitions.
-Account that is used to assist in closing temporary-equity accounts

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 19

The adjusted balances for Tomas Co. are listed below.
 Cash, $20,000
Accounts Receivable, $2,500
Prepaid Insurance, $3,500
Equipment, $15,000
Accumulated Depreciation, $2,000
Accounts Payable, $4,000
J.Tomas, Capital, $30,000
J.Tomas, Drawing, $10,000
Income from Services, $35,000
Wages Expense, $12,000
Rent Expense, $8,000
The entry to close revenue would involve a

Accepted Answer

A)   debit to Income Summary, $35,000.
B)   credit to Income from Services, $35,000
C)   debit to Income from Services, $35,000.
D)   None of the answers listed

Question 20

Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?

Accepted Answer

A)   Drawing
B)   Accounts Receivable
C)   Income from Services
D)   Supplies Expense
E)   Wages Expense

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

Rank the steps of the accounting cycle in the proper order of preparation.

Correct Answer
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The closing process causes the account balance of which account to be zeroed out?

Correct Answer
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In the closing procedure, the expense account(s) should be closed into the:

Correct Answer
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Correct Answer
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The entry to close expenses would involve (a)

Correct Answer
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The _______________ requires that revenue is recorded when earned and expenses are recorded when incurred.

Correct Answer
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If Income Summary has a credit balance after closing revenue and expense accounts, this indicates a net loss.

Correct Answer
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Explain the differences between cash and accrual accounting methods.

Correct Answer
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The cash basis of accounting records rev...
View Answer

Correct Answer
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The Income Summary account balance should always increase after the closing entries are posted at the end of the accounting period.

Correct Answer
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Correct Answer
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Financial statements prepared during the fiscal year for periods of less than twelve months are called

Correct Answer
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In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

Correct Answer
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The balance of the Drawing account is closed to the Capital account.

Correct Answer
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Match the terms that follow with the correct definitions. -Account that is used to assist in closing temporary-equity accounts

Correct Answer
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Revenue and expenses would not appear on a(n)

Correct Answer
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Which of the following are all permanent accounts?

Correct Answer
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Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?

Correct Answer
verified

Match the terms that follow with the correct definitions. -The debit to Income Summary represents the total

Correct Answer
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Match the terms that follow with the correct definitions. -Account classifications that are closed into the Income Summary account

Correct Answer
verified

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

Rank the steps of the accounting cycle in the proper order of preparation.

Correct AnswerverifiedShow Answer

The closing process causes the account balance of which account to be zeroed out?

Correct AnswerverifiedShow Answer

In the closing procedure, the expense account(s) should be closed into the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The entry to close expenses would involve (a)

Correct AnswerverifiedShow Answer

The _______________ requires that revenue is recorded when earned and expenses are recorded when incurred.

Correct AnswerverifiedShow Answer

If Income Summary has a credit balance after closing revenue and expense accounts, this indicates a net loss.

Correct AnswerverifiedShow Answer

Explain the differences between cash and accrual accounting methods.

Correct AnswerverifiedThe cash basis of accounting records rev...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The Income Summary account balance should always increase after the closing entries are posted at the end of the accounting period.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Financial statements prepared during the fiscal year for periods of less than twelve months are called

Correct AnswerverifiedShow Answer

In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?

Correct AnswerverifiedShow Answer

The balance of the Drawing account is closed to the Capital account.

Correct AnswerverifiedShow Answer

Match the terms that follow with the correct definitions. -Account that is used to assist in closing temporary-equity accounts

Correct AnswerverifiedShow Answer

Revenue and expenses would not appear on a(n)

Correct AnswerverifiedShow Answer

Which of the following are all permanent accounts?

Correct AnswerverifiedShow Answer

Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance?

Correct AnswerverifiedShow Answer

Match the terms that follow with the correct definitions. -The debit to Income Summary represents the total

Correct AnswerverifiedShow Answer

Match the terms that follow with the correct definitions. -Account classifications that are closed into the Income Summary account

Correct AnswerverifiedShow Answer

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The cash basis of accounting records rev...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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