56) The entry to close the Fees Earned account would cause:

A) the Capital account balance to increase.

B) the Capital account balance to decrease.

C) the Fees Earned account to decrease.

D) None of these are correct.

57) The beginning capital balance is $900; there are no additional investments or withdrawals by the owner during the accounting period. The period’s revenue is $500 and expenses total $450. What is the ending capital balance (after closing entries)?

A) $950

B) $1,500

C) $1,450

D) $50

 

58) The beginning capital balance is $5,350, there are no additional investments but the owner did withdraw $500 during the accounting period. The period’s revenue is $5,000 and expenses total $6,500. What is the ending capital balance (after closing entries)?

A) $5,350

B) $2,850

C) $5,850

D) $3,350

 

59) There are 7 closing entries.

 

60) The Withdrawals account is closed to Income Summary.

 

61) The Withdrawals account is closed to the Owner’s Capital account.

62) Real accounts are those accounts with balances that are brought forward to the next accounting period.

 

63) Nominal accounts are called temporary accounts because their balances are not carried forward to the next accounting period.

 

64) Revenues and expenses are closed to the Income Summary account.

 

65) Closing entries are found in the adjustment columns of the worksheet.

 

 

 



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