Question : Multiple Choice Questions 27.One purpose of closing entries to give zero : 1169380

 

Multiple Choice Questions 

27.One purpose of closing entries is to give zero balances to   

A. asset and liability accounts.

 

B. liability and capital accounts.

 

C. revenue and expense accounts.

 

D. expense and capital accounts.

 

 

 

 

28.Use the following account balances from the adjusted trial balance of ABCConsulting  Select the correct closing entry that ABCConsulting would make to close their revenue account(s) at the end of the accounting period.   

A. debit FeesRevenue and credit Cash for $15,000.

 

B. debit IncomeSummary and credit FeesRevenue for $15,000.

 

C. debit FeesRevenue and credit B.Conway,Capital for $15,000.

 

D. debit FeesRevenue and credit IncomeSummary for $15,000.

 

 

 

 

29.Use the following account balances from the adjusted trial balance of ABCConsulting  Select the correct closing entry that ABCConsulting would make to close their expense account(s) at the end of the accounting period.   

A. debit SalaryExpense $2,000; debit RentExpense $3,000; debit SuppliesExpense $4,000 and credit IncomeSummary $9,000.

 

B. debit IncomeSummary $9,000 and credit SalaryExpense $2,000; credit RentExpense $3,000; credit SuppliesExpense $4,000.

 

C. debit IncomeSummary $9,000 and credit B.Conway,Capital for $9,000.

 

D. debit B.Conway,Capital$9,000 and credit SalaryExpense $2,000; credit RentExpense $3,000; credit SuppliesExpense $4,000.

 

 

 

 

30.Use the following account balances from the adjusted trial balance of ABCConsulting  Select the correct closing entry that ABCConsulting would make to close the owner’s withdrawal account at the end of the accounting period.   

A. debit B.Conway,Drawing $500 and credit IncomeSummary for $500.

 

B. debit IncomeSummary $500 and credit B.Conway,Drawing for $500.

 

C. debit B.Conway,Capital $500 and credit B.Conway,Drawing for $500.

 

D. debit B.Conway,Drawing $500 and credit B.Conway,Capital for $500.

 

 

 

 

31.Use the following account balances from the adjusted trial balance of GeesCatering  Select the correct closing entry that GeesCatering would make to close their revenue account(s) at the end of the accounting period.   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

 

 

 

 

32.Use the following account balances from the adjusted trial balance of GeesCatering  Select the correct closing entry that GeesCatering would make to close their IncomeSummary account at the end of the accounting period.   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

The company had a net loss ($10,000 – $7,000 – $6,000 – $6,000) = $9,000 loss

 

 

 

33.Use the following account balances from the adjusted trial balance of GeesCatering  Select the correct closing entry that GeesCatering would make to close the owner’s withdrawal account at the end of the accounting period.   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

 

 

 

 

34.After the closing entries are posted to the ledger, each expense account will have   

A. a debit balance.

 

B. a credit balance.

 

C. a negative balance.

 

D. a zero balance.

 

 

 

 

35.Which of the following accounts is not closed?   

A. Cash

 

B. Fees Income

 

C. Rent Expense

 

D. Joan Wilson, Drawing

 

 

 

 

36.The entry to close the Income Summary account may include   

A. a debit to Income Summary and a credit to the owner’s capital account.

 

B. a debit to Income Summary and a credit to Cash.

 

C. a debit to Cash and a credit to Income Summary.

 

D. a debit to Income Summary and a credit to the owner’s drawing account.