Question 1

Which of the following accounts would be closed at the end of the accounting period?

Accepted Answer

A)  Merchandise Inventory
B)  Purchases
C)  Prepaid Rent
D)  Accumulated DepreciationE) B) and D)
F) B) and C)

Question 2

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were
$4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Net Delivered Cost of Purchases is:

Accepted Answer

A)  $172,300
B)  $193,300
C)  $187,000
D)  $201,700E) B) and C)
F) A) and C)

Question 3

Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:

Accepted Answer

A)  Delivery Expense
B)  Sales Salaries Expense
C)  Advertising Expense
D)  Insurance ExpenseE) All of the above
F) B) and D)

Question 4

The owner of a firm had capital of $78,000 on January 1, 2019, and made withdrawals of $29,000 during 2019. The business earned a net income of $42,000 for the year.
1. What amount of capital was shown as of December 31, 2019, on the statement of owner's equity?
2. How much was the increase or decrease in capital for the year?

Accepted Answer

1. $91,000...

Question 5

Which of the following accounts is not closed at the end of the accounting period?

Accepted Answer

A)  Interest Expense
B)  Accumulated Depreciation
C)  Depreciation Expense
D)  SalesE) All of the above
F) B) and C)

Question 6

In the general journal, reversing entries are dated as of

Accepted Answer

A)  any time before the end of the fiscal period.
B)  the first day of the new fiscal period.
C)  any day during the month of the new fiscal period.
D)  the last day of the old fiscal period.E) B) and C)
F) A) and B)

Question 7

Interest Expense is classified as a(n) :

Accepted Answer

A)  Administrative Expense
B)  Other Expense
C)  Selling Expense
D)  Other IncomeE) A) and D)
F) B) and D)

Question 8

Which of the following would not be classified as a Current Asset:

Accepted Answer

A)  Cash
B)  Accounts Receivable
C)  Equipment
D)  SuppliesE) A) and C)
F) B) and D)

Question 9

On a classified balance sheet, Accounts Payable would appear in the________ section.

Accepted Answer

The answer of On a classified balance sheet, Accounts Payable...

Question 10

Which of the following statements is not correct?

Accepted Answer

A)  In the closing process, the balance of the Purchases account is transferred to the Merchandise Inventory account.
B)  Closing the Revenue accounts is the first step in the closing process.
C)  In the closing process, the balance of the owner's drawing account is transferred to the debit side of the owner's capital account.
D)  The worksheet is the source of data for the general journal entries required to close the temporary accounts.E) A) and D)
F) B) and D)

Question 11

The balance of the owner's drawing account is reported

Accepted Answer

A)  in the Operating Expenses section of the income statement.
B)  in the Current Assets section of the balance sheet.
C)  in the Other Expenses section of the income statement.
D)  on the statement of owner's equity.E) A) and D)
F) All of the above

Question 12

A classified income statement showed net sales of $630,000, cost of goods sold of $342,000, and total operating expenses of $192,000 for the fiscal year ended June 30, 2019.
1. What was the gross profit on sales?
2. What was the net income from operations?

Accepted Answer

1. $288,00...

Question 13

After the________ entries are posted, the Sales account will have a zero balance.

Accepted Answer

The answer of After the________ entries are posted, the Sales...

Question 14

The Income Summary account, for Wise Tools appears below. Based on the data contained in the account, determine which of the statements below is correct.
Income Summary

Accepted Answer

A)  Wise Tools will report net income of $1,000 for the period ending 12/31
B)  Wise Tools will report net income of $6,000 for the period ending 12/31
C)  Wise Tools will report a $1,000 net loss for the period ending 12/31
D)  Wise Tools will report a $6,000 net loss for the period ending 12/31E) A) and D)
F) All of the above

Question 15

Use the following account balances from the adjusted trial balance columns of RB Auto's
Worksheet to answer below question.
 
-
Select the correct closing entry that RB Auto would make to close their expense account(s) at the end of the accounting period.

Accepted Answer

A)  debit R. Holloway, Capital $9,000 and credit Salary Expense $4,000; credit Rent Expense$3,000; credit Purchases $2,000
B)  debit Income Summary $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000
C)  debit Salary Expense $4,000; debit Rent Expense $3,000; debit Purchases $2,000 and creditIncome Summary $9,000
D)  debit Income Summary $9,000 and credit R. Holloway, Capital for $9,000E) B) and C)
F) A) and D)

Question 16

The current ratio is calculated by

Accepted Answer

A)  dividing total assets by total liabilities.
B)  subtracting current liabilities from current assets.
C)  adding current assets to current liabilities.
D)  dividing current assets by current liabilities.E) None of the above
F) A) and D)

Question 17

Use the following account balances from the adjusted trial balance columns of Goody Chocolate's
Worksheet to answer below question.
 
-
Using the adjusted trial balance above, select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period.

Accepted Answer

A)   
B)  
C)  
D)  E) A) and C)
F) All of the above

Question 18

All accounts appearing in the ________section of the worksheet are closed to the Income Summary account.

Accepted Answer

The answer of All accounts appearing in the ________section of...

Question 19

The owner of a firm had capital of $170,000 on January 1, 2019, and made withdrawals of $96,000 during 2019. The business earned a net income of $90,000 for the year.
1. What amount of capital was shown as of December 31, 2019, on the statement of owner's equity?
2. How much was the increase or decrease in capital for the year?

Accepted Answer

1. $164,00...

Question 20

Prepaid expenses appear in the

Accepted Answer

A)  Operating Expenses section of the income statement.
B)  Current Liabilities section of the balance sheet.
C)  Other Expenses section of the income statement.
D)  Current Assets section of the balance sheet.E) All of the above
F) A) and C)

Exam 13: Financial Statements and Closing Procedures

Correct Answer
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1. $91,000...
View Answer

Which of the following accounts is not closed at the end of the accounting period?

Correct Answer
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In the general journal, reversing entries are dated as of

Correct Answer
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All accounts appearing in the ________section of the worksheet are closed to the Income Summary account.

Correct Answer
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The balance of the owner's drawing account is reported

Correct Answer
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Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:

Correct Answer
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Correct Answer
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The Income Summary account, for Wise Tools appears below. Based on the data contained in the account, determine which of the statements below is correct. Income Summary

Correct Answer
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Which of the following accounts would be closed at the end of the accounting period?

Correct Answer
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Which of the following would not be classified as a Current Asset:

Correct Answer
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A classified income statement showed net sales of $630,000, cost of goods sold of $342,000, and total operating expenses of $192,000 for the fiscal year ended June 30, 2019. 1. What was the gross profit on sales? 2. What was the net income from operations?

Correct Answer
verified
1. $288,00...
View Answer

Prepaid expenses appear in the

Correct Answer
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Use the following account balances from the adjusted trial balance columns of RB Auto's Worksheet to answer below question. - Select the correct closing entry that RB Auto would make to close their expense account(s) at the end of the accounting period.

Correct Answer
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Which of the following statements is not correct?

Correct Answer
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After the________ entries are posted, the Sales account will have a zero balance.

Correct Answer
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On a classified balance sheet, Accounts Payable would appear in the________ section.

Correct Answer
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For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Net Delivered Cost of Purchases is:

Correct Answer
verified

Correct Answer
verified
1. $164,00...
View Answer

Interest Expense is classified as a(n) :

Correct Answer
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The current ratio is calculated by

Correct Answer
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Exam 13: Financial Statements and Closing Procedures

Correct Answerverified1. $91,000...View AnswerShow Answer

Which of the following accounts is not closed at the end of the accounting period?

Correct AnswerverifiedShow Answer

In the general journal, reversing entries are dated as of

Correct AnswerverifiedShow Answer

All accounts appearing in the ________section of the worksheet are closed to the Income Summary account.

Correct AnswerverifiedShow Answer

The balance of the owner's drawing account is reported

Correct AnswerverifiedShow Answer

Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Income Summary account, for Wise Tools appears below. Based on the data contained in the account, determine which of the statements below is correct. Income Summary

Correct AnswerverifiedShow Answer

Which of the following accounts would be closed at the end of the accounting period?

Correct AnswerverifiedShow Answer

Which of the following would not be classified as a Current Asset:

Correct AnswerverifiedShow Answer

A classified income statement showed net sales of $630,000, cost of goods sold of $342,000, and total operating expenses of $192,000 for the fiscal year ended June 30, 2019. 1. What was the gross profit on sales? 2. What was the net income from operations?

Correct Answerverified1. $288,00...View AnswerShow Answer

Prepaid expenses appear in the

Correct AnswerverifiedShow Answer

Use the following account balances from the adjusted trial balance columns of RB Auto's Worksheet to answer below question. - Select the correct closing entry that RB Auto would make to close their expense account(s) at the end of the accounting period.

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

After the________ entries are posted, the Sales account will have a zero balance.

Correct AnswerverifiedShow Answer

On a classified balance sheet, Accounts Payable would appear in the________ section.

Correct AnswerverifiedShow Answer

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Net Delivered Cost of Purchases is:

Correct AnswerverifiedShow Answer

Correct Answerverified1. $164,00...View AnswerShow Answer

Interest Expense is classified as a(n) :

Correct AnswerverifiedShow Answer

The current ratio is calculated by

Correct AnswerverifiedShow Answer

Correct Answer
verified
1. $91,000...
View Answer

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Correct Answer
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Correct Answer
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1. $288,00...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
verified
1. $164,00...
View Answer

Correct Answer
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Correct Answer
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