(A SoS ————— oe Multiple Choice 1. Some entities adjust thei 1 Neir a J For these firms, cCOunts and close their books only on an annual basis 3 worksheets may be Prepared on an interim basi worksheets are not needed. on an interim basis. worksheets are prepared pared only on an annual worksheets sre not prepared. annual bs w a9 Gosing entries reduce thi . 7 7 @ following type of accounts to 2 zero balance at the end of the period. ao = x the endo @. income and expenses b. income summary c withdrawals g. allofthe sbove 3. The dosing entry for Salaries Expense, with a balance of P240,000 is 2 Salaries Expense 249,000 Income Summary 220,000 b. Salaries Expense 240,000 Salaries Payable 249,000 < _ income Summary 240,000 Salaries Expense 240,000 ¢. _— Selaries Payable 240,000 — Salaries Expense 240, 4. The purpose of the post-closing trial belance isto . provi he preparation of the balance sheet. a de the account balances fort : ensure that the ledger is in balance for completion of the worksheet. c. aid the journalizing ‘and posting of the closing entries. ¢. ensure that the ledger is in balance for the start of the next period. j 2 5. Which of the following accounts will appear on the post-closing trial balance? Sepeeaion expense building owner withdrawals service revenues app OULAIINNICU WILT vainS10. A final check on the adjusting and closing process is provided by the a. worksheet. cc. post-closing trial balance. b. financial statements. d. adjusted trial balance. If the last item ona trial balance reads "Owner's Equity", this must be the a. post-closing trial balance. c. adjusted trial balance. b. unadjusted trial balance. d. reversed trial balance. If a trial balance were to be prepared on the first day of the new year, and the account Salaries Expense had a credit balance, you would know that a. the trial balance is a post-closing trial balance. b. the adjusting entries have been recorded. c. the trial balance is an adjusted trial balance. d. areversing entry has been made. Reversing entries are optional. made to record a change in corporate objectives. required by generally accepted accounting principles. made prior to preparing a post-closing trial balance. ance Which of the following comes last in the accounting Process? a. preparation of a post-closing trial balance b. preparation of an adjusted trial balance c. worksheet preparation d. journalizing external transactions Scanned with CamSt™” [NAME | score (sectors - | PROFESSOR 4 Multiple Choice 1 Which of the fotlowing accounts could appear in an adjusting entry, closing entry and reversing entry? Interest Income Salaries Payable Depreciation Expense-Suildi Accumulated Depreciation-Buildings aoge When an entity has eared a profit, the profit amount is entered on the work sheet on the a. debit side of the Income Statement columns and the crecit side of the Balance Sheet columns. b. credit side of the Income Statement columns and the debit side of the Balance Sheet columns. c debit side of both the Income Statement and the Balance Sheet columns. G. credit side of both the Income Statement and the Balance Sheet columns. Probably the last account to be listed on 2 post-iesing tris! balance would De Salaries Payable. Salaries Expense. Owner's Capital. Income Summary. pao oe When there is a loss, the entry to dose the Income Summary account is debit Loss and credit Income Summary. debit Owner's Capital and credit Income Summary. debit Income Summary end crest Loss. d. debit income Summary and credit Owner's C2pital. On the completed work sheet, which set of columns usually should be out of balance after the initisl footing? a. Balance Sheet columns only Adjusted Trial Balance columas only b. Income Statement columas cay d. Both Income Statement and Bsisnce Sheet columns eow The post-ciosing trial balance contains a. real accounts only. b. nominal accounts only. OULAIINNICU WILT vamS10. 11. 12. ¢. both real accounts and nominal accounts. d. neither real accounts nor nominal accounts. In which financial statement does Income Summary appear? a. Income statement b. Statement of changes in equity c. Balance sheet d. Itdoes not appear in any financial statement. When an entity has suffered a loss, the loss amount is entered on the work sheet on, the a, debit side of the Income Statement columns and the credit side of the Balance Sheet columns. b. credit side of the Income Statement columns and the debit side of the Balance Sheet columns. ‘ debit side of both the Income Statement and the Balance Sheet columns, d. credit side of both the Income Statement and the Balance Sheet columns. 9 An important purpose of closing entries is to adjust the accounts in the ledger. . set nominal account balances to zero at the start of the next period. set'real account balances to zero at the start of the next period. help in preparing financial statements. poo Which of the following sequences of documents or records describes the proper sequence in the accounting cycle? a. Source documents, ledger, journal, financial statements b. Journal, source documents, ledger, financial statements c. Source documents, journal, ledger, financial statements d. Ledger, source documents, journal, financial statements Closing entries will increase the Owner's Capital balance. decrease the Owner's Capital balance. not affect the Owner's Capital balance. either increase or decrease the Owner’s Capital balance. aoge Which of the following accounting cycle steps comes before the others? The financial statements are prepared. Closing entries are recorded and posted. Source documents are analyzed. Adjusting entries are recorded and posted. aoc OULAIINICU WILT vans3. Closing entries ultimately will affect a. total liabilities. b. the Cash account. c. total assets, the Owner's Capital account. 4, If no adjustments are needed for a particular entity, its Post-closing trial balance will be identical to its trial balance. adjusted trial balance will be identical to its post-closing trial balance trial balance will be identical to its adjusted trial balance. trial balance, adjusted trial balance, and post-closing trial balance will be identical. aoge 5. Which of the following accounts is not closed during the closing process? Income Summary Owner's Capital Commissions Revenues Owner's Withdrawals aoe Which of the following could not possibly be a closing entry? Debit Income Summary and credit Owner's Capital a. | __b. Debit Owner's Capital and credit Owner's Withdrawals E Debit Income Summary and credit Owner's Withdrawals d. Debit Owner's Capital and credit Income Summary 17. In preparing closing entries, which of the following columns of the work sheet are the most helpful? F Adjustments columns Adjusted Trial Balance columns Income Statement columns Balance Sheet columns ‘ective of reversing entries is to The primary obj a. correct errors. / : / b. simplify the bookkeeping associated with accruals from the prior period. e accounts to the Owner's Capital account ance of the expens' ounts equal to zero. rent period in the proper accounts. c. transfer the bal and set the acc’ d. place the expenses for the curl OULAIINNICU WILT vais