Question : Multiple Choice Questions 73.Another name for a temporary account a(n): A.Real account. B.Contra : 1258792

 

Multiple Choice Questions 

73.Another name for a temporary account is a(n):   

A.Real account.

 

B.Contra account.

 

C.Accrued account.

 

D.Balance column account.

 

Nominal account.

 

 

 

 

74.Which of the following accounts are permanent (real) accounts?   

A.Fees earned.

 

B.Office supplies expense.

 

C.Interest revenue.

 

Accounts payable.

 

E.Salaries expense.

 

 

 

 

75.When closing entries are made:   

A.All ledger accounts are closed to start the new accounting period.

 

All temporary accounts are closed but permanent accounts are not closed.

 

C.All real accounts are closed but nominal accounts are not closed.

 

D.All permanent accounts are closed but nominal accounts are not closed.

 

E.All balance sheet accounts are closed.

 

 

 

 

76.Revenues, expenses, and dividend accounts, which are closed at the end of each accounting period are:   

A.Real accounts.

 

Temporary accounts.

 

C.Closing accounts.

 

D.Permanent accounts.

 

E.Balance sheet accounts.

 

 

 

 

77.Assets, liabilities, and equity accounts are not closed; these accounts are called:   

A.Nominal accounts.

 

B.Temporary accounts.

 

Permanent accounts.

 

D.Contra accounts.

 

E.Accrued accounts.

 

 

 

 

78.Closing the temporary accounts at the end of each accounting period does all of the following except:    

A.Serves to transfer the effects of these accounts to the retained earnings account on the balance sheet.

 

B.Prepares the dividends account for use in the next period.

 

C.Brings the revenue and expense accounts to zero balances.

 

Has no effect on the retained earnings account.

 

E.Causes retained earnings to reflect increases from revenues and decreases from expenses and dividends.

 

 

 

 

79.Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and dividend accounts for the upcoming period and to update the retained earnings account for the events of the period just finished are referred to as:   

A.Adjusting entries.

 

Closing entries.

 

C.Final entries.

 

D.Work sheet entries.

 

E.Updating entries.

 

 

 

 

80.The closing process is necessary in order to:   

A.Calculate net income or net loss for an accounting period.

 

B.Ensure that all permanent accounts are closed to zero at the end of each accounting period.

 

C.Ensure that the company complies with state laws.

 

Ensure that net income or net loss and dividends for the period are closed into the retained earnings account.

 

E.Ensure that management is aware of how well the company is operating.

 

 

 

 

81.The recurring steps performed each reporting period in preparing financial statements, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:   

A.Accounting period.

 

B.Operating cycle.

 

Accounting cycle.

 

D.Closing cycle.

 

E.Natural business year.

 

 

 

 

82.Which of the following is the usual final step in the accounting cycle?   

A.Journalizing transactions.

 

B.Preparing an adjusted trial balance.

 

Preparing a post-closing trial balance.

 

D.Preparing the financial statements.

 

E.Preparing a work sheet.