HFT2401 Quiz #3
The followings are part of account lists and their balances on adjusted trial balance. What is the balance of total assets based on post-closing trial balance?
140,000
The followings are part of account lists and their balances on adjusted trial balance. What is the amount of Net Income?
65,000
The followings are part of account lists and their balances on adjusted trial balance. What is the balance of Retained Earnings that should appear on post-closing trial balance?
75,000
The followings are part of account lists and their balances on adjusted trial balance. What is the balance of total equity after closing entries?
95,000
The followings are part of account lists and their balances on adjusted trial balance. What are journal entries to close revenue accounts?
Debit Service Revenue Credit Income Summary
Accounts payable is a temporary account.
False
Accrued salaries payable is a temporary account.
False
Accumulated depreciation is a temporary account.
False
An important purpose of closing entries is to set permanent account balances to zero in order to begin the next period.
False
After closing entries, all temporary accounts are merged into one permanent account, and this account will be listed in the balance sheet. The name of this account is
Retained Earnings
The dividends, revenue, and expense accounts are temporary accounts.
True
The final step in the accounting cycle is to prepare
a post-closing trial balance
In preparing closing entries
each expense account will be credited
If the total debit column exceeds the total credit column of the income statement columns on a work sheet, then the company has
suffered a net loss for the period
An error has occurred in the closing entry process if
the balance sheet accounts have zero balances
A temporary account, Income Summary, is used in closing revenue and expense accounts.
True
Depreciation expense is a temporary account.
True
Closing entries are journalized and posted
after the financial statements are prepared
The proper sequence for the accounting cycle is
analyze, journalize, post, adjust, prepare statements, close