Question : 113.It obvious that an error occurred in the preparation and/or : 1236869

113.It is obvious that an error occurred in the preparation and/or posting of closing entries if:    

A.all revenue and expense accounts have zero balances.

B.the owner’s capital account is debited for the amount of the net loss for the period.

C.the income summary account is debited for the amount of net income for the period.

D.all balance sheet accounts have zero balances.

E.only permanent accounts appear on the post-closing trial balance.

114.At the beginning of the year, a company’s balance sheet reported the following balances: Total Assets = $225,000; Total Liabilities = $125,000; and Owner’s Capital = $100,000. During the year, the company reported revenues of $46,000 and expenses of $30,000. In addition, owner’s withdrawals for the year totaled $20,000. Assuming no other changes to owner’s capital, the balance in the owner’s capital account at the end of the year would be:   

A.$116,000.

B.$136,000.

C.$24,000.

D.$96,000.

E.$104,000.

115.At the beginning of the year, Sigma Company’s balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During the year, the company reported total revenues of $226,000 and expenses of $175,000. Also, owner withdrawals during the year totaled $48,000. Assuming no other changes to owner’s capital, the balance in the owner’s capital account at the end of the year would be:   

A.$174,000.

B.$78,000.

C.$171,000.

D.$120,000.

E.$123,000.

116.After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $33,000. The entry to close the income summary account will be:   

A.Debit Owner Withdrawals $33,000; credit Income Summary$33,000.

B.Debit Income Summary $33,000; credit Owner Withdrawals $33,000.

C.Debit Income Summary$33,000; credit Owner Capital $33,000.

D.Debit Owner Capital $33,000; credit Income Summary $33,000.

E.Credit Owner Capital $33,000; debit Owner Withdrawals $33,000.

117.The trial balance prepared after all closing entries have been journalized and posted is called the:   

A.Unadjusted trial balance.

B.Post-closing trial balance.

C.General ledger.

D.Adjusted trial balance.

E.Work sheet.

118.Which of the following accounts showing a balance on the post-closing trial balance indicate an error?   

A.Office Equipment.

B.Accumulated Depreciation-Office Equipment.

C.Depreciation Expense-Office Equipment.

D.N. Young, Capital.

E.Salaries Payable.

119.Which of the following accounts showing a balance on the post-closing trial balance indicate an error?   

A.Land.

B.S. Stills, Withdrawal.

C.Accounts Payable.

D.Unearned Revenue.

E.Prepaid Insurance.

120.A post-closing trial balance reports:   

A.All permanent ledger accounts with balances.

B.All nominal ledger accounts with balances.

C.All temporary and permanent ledger accounts with balances.

D.Only revenue and expense accounts.

E.Only asset accounts.

121.Which of the following statements is true?   

A.Owner’s capital must be closed each accounting period.

B.A post-closing trial balance should include only permanent accounts.

C.The work sheet can be substituted for preparing financial statements.

D.By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.

E.Closing entries are only necessary if errors have been made.

122.Reversing entries:   

A.Are optional.

B.Are mandatory.

C.Correct errors in journal entries.

D.Are required by GAAP.

E.Are prepared on the worksheet.