6) Accounts in which the balances are carried over from one accounting period to the next are called:

A) real accounts.

B) nominal accounts.

C) temporary accounts.

D) zero accounts.

 

7) Closing entries:

A) need not be journalized since they appear on the worksheet.

B) need not be posted if the financial statements are prepared from the worksheet.

C) are not needed if adjusting entries are prepared.

D) must be journalized and posted.

 

8) Closing entries will affect:

A) total assets.

B) Cash.

C) Owner’s Capital.

D) total liabilities.

 

9) Which of the following accounts should not be closed to Income Summary at the end of the fiscal year?

A) Salaries Expense

B) Fees Earned

C) Utilities Expense

D) Withdrawals

10) To close the Withdrawals account:

A) debit Withdrawals; credit Capital.

B) debit Capital; credit Withdrawals.

C) debit Withdrawals; credit Income Summary.

D) debit Income Summary; credit Withdrawals.

 

11) The correct order for closing accounts is:

A) revenue, expenses, income summary, withdrawals.

B) revenue, income summary, expenses, withdrawals.

C) revenue, expenses, capital, withdrawals.

D) revenue, capital, expenses, withdrawals.

 

12) To close the Fees Earned account:

A) debit Income Summary; credit Fees Earned.

B) debit Fees Earned; credit Capital.

C) debit Fees Earned; credit Income Summary.

D) debit Capital; credit Fees Earned.

 

13) Which of the following accounts will be directly closed to Capital at the end of the fiscal year?

A) Salaries Expense

B) Fees Revenue

C) Withdrawals

D) Depreciation Expense

14) When the balance of the Income Summary account is a credit, the entry to close this account is:

A) debit Capital, credit Income Summary.

B) debit Income Summary; credit Revenue.

C) debit Income Summary; credit Capital.

D) debit Revenue; credit Income Summary.

 

15) When the balance of the Income Summary account is a debit, the entry to close this account is:

A) debit Capital; credit Income Summary.

B) debit Income Summary; credit Revenue.

C) debit Revenue; credit Income Summary.

D) debit Income Summary; credit Capital.

 

 

 



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