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The Unadjusted Trial Balance columns of a work sheet total $84,000Office supplies used during the period, $1,200Expiration of prepaid rent, $700.(3) Accrued salaries expense, $500Depreciation expense, $800.(5) Accrued repair service fees receivable, $400.The Adjusted Trial Balance columns total:


A) $84,000.
B) $80,400.
C) $87,600.
D) $85,700.
E) $85,900.

F) C) and D)
G) B) and E)

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Explain why closing entries are a necessary step in the accounting cycle

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Closing entries are a necessary step bec...

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Another name for temporary accounts is


A) Balance column accounts.
B) Contra accounts.
C) Accrued accounts.
D) Real accounts.
E) Nominal accounts.

F) B) and E)
G) None of the above

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A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process?


A) A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process? A) B) C) D) E) All of these should be journalized in the closing process.
B) A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process? A) B) C) D) E) All of these should be journalized in the closing process.
C) A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process? A) B) C) D) E) All of these should be journalized in the closing process.
D) A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process? A) B) C) D) E) All of these should be journalized in the closing process.
E) All of these should be journalized in the closing process.

F) A) and C)
G) D) and E)

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Explain why temporary accounts are closed each period

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Temporary accounts are closed at the end...

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The special account used only in the closing process to temporarily hold the amounts ofrevenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:


A) Nominal account.
B) Balance column account.
C) Income Summary account.
D) Contra account.
E) Closing account.

F) A) and E)
G) C) and D)

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Indicate beside each of the following accounts whether the account is a temporary or permanent account.(a)Cash(b)Prepaid insurance(c)Unearned Revenue(d)Accounts receivable(e)Insurance expense(f)Smith, capital(g)Smith, withdrawals(h)Rent expense(i)Revenue(j)Supplies(k)Supplies expense(l)Depreciation expense, building(m)Accumulated depreciation, building

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(a) permanent (b) permanent (c...

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Real accounts are


A) Not shown on the balance sheet.
B) Another name for permanent accounts.
C) Income statement accounts.
D) Another name for temporary accounts.
E) Closed at the end of the accounting period.

F) A) and C)
G) None of the above

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The Income Summary account is


A) Used in the closing process to summarize the amounts of revenues and expenses.
B) Not a permanent account.
C) The account from which the amount of profit or loss is transferred to the owners' capital accounts in a partnership.
D) A temporary account.
E) All of these answers are correct.

F) C) and D)
G) A) and C)

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Internal documents prepared by accountants when organizing the information presented in formal reports to internal and external decision makers are called:


A) Adjusting papers.
B) Working papers.
C) Closing papers.
D) Statement papers.
E) Business papers.

F) D) and E)
G) A) and B)

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The following are the steps in the accounting cycle. List them in the order in which they are completed:Completing the work sheetPostingPreparing an unadjusted trial balanceJournalizingPreparing the statementsClosing the temporary accountsAdjusting the ledger accountsPreparing a post-closing trial balance

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(1) Journalizing
(2) Posting
(3) Prepari...

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If the Balance Sheet columns of a work sheet fail to balance when the amount of profit is added to the Balance Sheet Credit column, the cause could be:


A) An expense amount entered in the Balance Sheet Debit column.
B) A liability amount entered in the Income Statement Credit column.
C) An asset amount entered in the Income Statement Debit column.
D) A liability amount entered in the Balance Sheet Debit column.
E) A revenue amount entered in the Balance Sheet Credit column.

F) D) and E)
G) A) and B)

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) The items that follow appeared in the Income Statement columns of the work sheet prepared for a sole proprietorship at year-end, December 31, 2015. Also, the owner's withdrawals account was debited for $12,000 during the year. Prepare the necessary closing entries at December 31. ) The items that follow appeared in the Income Statement columns of the work sheet prepared for a sole proprietorship at year-end, December 31, 2015. Also, the owner's withdrawals account was debited for $12,000 during the year. Prepare the necessary closing entries at December 31.

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131 131

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Accounts that are used to describe revenues, expenses, and owner's withdrawals, andare closed at the end of the reporting period, are:


A) Ledger accounts.
B) Closing accounts.
C) Permanent accounts.
D) Temporary accounts.
E) Real accounts.

F) C) and D)
G) A) and C)

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Discuss the purpose of a post-closing trial balance

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A post-closing trial balance is a list o...

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The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31, 2015, is shown below. Identify how each account balance would b e classified on a balance sheet given the following classification symbols: The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31, 2015, is shown below. Identify how each account balance would b e classified on a balance sheet given the following classification symbols: The alphabetized adjusted trial balance for SimCo Electrical Outfitters at August 31, 2015, is shown below. Identify how each account balance would b e classified on a balance sheet given the following classification symbols:

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The ending balance of owner's capital is calculated as


A) Assets plus liabilities.
B) Owner's capital account balance minus loss plus the withdrawals account balance.
C) Profit minus the withdrawals account balance.
D) Owner's capital account balance plus profit minus the withdrawals account balance.
E) None of these answers is correct.

F) A) and E)
G) A) and C)

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The eight recurring steps performed each accounting period, starting with recordingtransactions in the journal and continuing through the post-closing trial balance, is called the:


A) Closing cycle.
B) Natural business year.
C) Accounting period.
D) Operating cycle.
E) Accounting cycle.

F) B) and C)
G) D) and E)

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Describe a classified balance sheet

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Classified balance sheets usually report...

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