Question 1

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 2

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 ExpenseE) A) and D)
F) C) and D)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 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 accountsO) E) and L)
P) F) and L)

Question 6

A separate explanation of each closing entry is necessary.

Accepted Answer

A) True 
 B)False

Question 7

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.E) B) and D)
F) A) and B)

Question 8

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 balanceE) C) and D)
F) B) and D)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Revenue and expense account are permanent accounts.

Accepted Answer

A) True 
 B)False

Question 11

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 RevenueE) A) and B)
F) A) and C)

Question 12

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.E) B) and D)
F) B) and C)

Exam 6: Financial Statements and the Closing Process

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

Correct Answer
verified

Revenue and expense account are permanent accounts.

Correct Answer
verified

A separate explanation of each closing entry is necessary.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 6: Financial Statements and the Closing Process

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

Correct AnswerverifiedShow Answer

Revenue and expense account are permanent accounts.

Correct AnswerverifiedShow Answer

A separate explanation of each closing entry is necessary.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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