Question : 51. When done properly, how many journal entries involved in the : 1197849

 

 

51. When done properly, how many journal entries are involved in the closing process? 

A. 2

B. 3

C. 4

D. 5

 

52. Which of the following statements is not correct? 

A. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances.

B. At the end of each accounting period, asset and liability account balances are reduced to zero.

C. A postclosing trial balance will not contain revenue and expense account balances.

D. Adjusting entries must be journalized and posted before the closing entries are journalized and posted.

 

53. Which of the following statements is correct? 

A. The Balance Sheet section of the worksheet contains the data that is used to make closing entries.

B. The balance of the owner’s drawing account will appear on the postclosing trial balance.

C. Closing entries are entered directly on the worksheet.

D. Preparation of the postclosing trial balance is the last step in the end-of-period routine.

 

54. After the closing entries are posted to the ledger, each revenue account will have 

A. a zero balance.

B. a debit balance.

C. a credit balance.

D. either a debit or a credit balance.

 

55. A postclosing trial balance could include all of the following except the 

A. owner’s capital account.

B. Cash account.

C. Fees Income account.

D. Accounts Receivable account.

 

56. Which of the following accounts is a permanent account? 

A. Supplies

B. Supplies Expense

C. Owner’s drawing

D. Fees Income

 

57. All of the following accounts will appear on the postclosing trial balance except 

A. Equipment.

B. Accumulated Depreciation–Equipment.

C. Depreciation Expense–Equipment.

D. Accounts Payable.

 

58. Which of the following statements is not correct? 

A. If the postclosing trial balance does not balance, there are errors in the accounting records.

B. The audit trial should be used to trace data through the accounting records to find and correct errors.

C. The balance of the owner’s capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement.

D. The balance of the owner’s capital account on the adjusted trial balance will usually be different than that reported on the postclosing trial balance.

 

59. During the closing process, Accumulated Depreciation, Equipment will 

A. be closed to the income summary account

B. be closed to the capital account

C. be closed to the drawing account

D. not be used

 

60. Which of the following accounts has a normal debit balance? 

A. Accounts Receivable

B. Accounts Payable

C. Fees Income

D. T. Stark, Capital

 

 

 

61. Which of the following has a normal credit balance? 

A. Accounts Receivable

B. Accounts Payable

C. Supplies Expense

D. T. Stark, Drawing

 

62. Information in the financial statements provides answers to many questions, including: 

A. How much do customers owe the business?

B. What are the business’ current and long term plans for expansion?

C. Has the business achieved its net income goal for the year?

D. All of the above.

 

63. The asset, liability, and owner’s capital accounts appear on all of the following except the 

A. income statement.

B. balance sheet.

C. postclosing trial balance.

D. worksheet.

 

64. After the worksheet has been completed, the next step in the accounting cycle is to 

A. journalize and post the closing entries.

B. journalize and post the adjusting entries.

C. prepare the postclosing trial balance.

D. prepare the financial statements.

 

65. After the transactions have been posted, the next step in the accounting cycle is to 

A. prepare the financial statements.

B. prepare the postclosing trial balance.

C. prepare the worksheet.

D. journalize and post the adjusting entries.