AC1100 Mini Assign 7 - Chapter 8

are journalized and posted to the ledger

Adjusting entries from the worksheet A) are journalized and posted to the ledger. B) are closed to the Income Summary account. C) affect only balance sheet accounts. D) are posted directly to the ledger.

a current asset.

An item that can be converted into cash or used up during the normal operating cycle is A) a long-term liability. B) a current liability. C) Plant and Equipment. D) a current asset.

a Cost of Purchasing Goods.

Freight-in is A) recorded as an asset. B) a Cost of Selling Goods. C) recorded as an Operating Expense. D) a Cost of Purchasing Goods.

Other Income

In which section does Interest Revenue appear in the Income Statement? A) Selling Expenses B) Administrative Expenses C) Other Income D) Other Expense

Gross Sales

Net Sales + Sales Discounts + Sales Returns and Allowances equals A) Net Loss. B) Gross Sales. C) Net Income from Operations. D) Gross Profit.

Gross Profit

Net Sales - Cost of Goods Sold is equal to A) Gross Expenses. B) Operating Expenses. C) Gross Profit. D) Net Income from Operations.

record any revenue from activities other than sales

Other Income is used to A) record all revenue. B) record any revenue from activities other than sales. C) record owner investments. D) record income from sales.

a debit to Income Summary for $700

The closing entry for the $700 balance of Wages Expense includes A) a debit to Wages Expense for $700. B) a credit to Wages Payable for $700. C) a credit to Income Summary for $700. D) a debit to Income Summary for $700.

close all balances on the income statement credit column of the worksheet except Income Summary.

The first step in the closing process is to A) close all balances on the income statement debit column of the worksheet except Income Summary. B) transfer the balance of the Owner's Withdrawals Account to Capital. C) close all balances on the income statement credit column of the worksheet except Income Summary. D) transfer the balance from the Income Summary Account to the Capital Account.

worksheet

The income statement is prepared from the A) worksheet. B) statement of owner's equity. C) general journal. D) balance sheet.

All of these answers are correct.

The post-closing trial balance contains A) only permanent accounts. B) all accounts with balances. C) assets and liabilities. D) All of these answers are correct.

the general ledger

The post-closing trial balance is prepared from A) the general ledger. B) the balance sheet columns on the worksheet. C) the trial balance columns on the worksheet. D) the income statement columns on the worksheet.

Sales Returns & Allowances account

To determine how much merchandise a company has had returned from its customers, it should review the A) Sales Returns & Allowances account. B) Inventory account. C) Cost of Goods Sold account. D) Sales Discounts account.

Sales Returns and Allowances Account.

To determine how much merchandise was returned from a company's customers, the company should review the A) Sales Returns and Allowances Account. B) Sales Discounts Account. C) Inventory Account. D) Cost of Goods Sold Account.

Sales

What is the name of the revenue account used by merchandise companies? A) Sales B) Capital C) Merchandise Inventory D) Merchandise Fees

Rental Income

When closing sales, which of the following accounts will also be closed? A) Rental Income B) Owner's Capital C) Sales Discounts D) Sales Returns and Allowances

Sales Returns and Allowances

When closing the expense account, which of the following accounts will also be closed? A) Owner's Capital B) Sales Returns and Allowances C) Merchandise Inventory D) Rental Income

Withdrawals

Which of the following accounts will NOT appear on the post-closing trial balance? A) Accounts Payable B) Withdrawals C) Capital D) Cash

Capital

Which of the following accounts will appear on the post-closing trial balance? A) Sales B) Cost of Goods Sold C) Withdrawals D) Capital

Post closing trial balance

Which of the following steps of the accounting cycle comes last? A) Journalize and post adjusting entries B) Post closing trial balance C) Journalize and post closing entries D) Prepare financial statements