After journalizing and posting the closing entries, anaccountant will:

a.prepare financial statements from the data on the worksheet.

b.record the adjusting entries on a work sheet.

c.complete the work sheet.

d.prepare a post-closing trial balance.

Which of the following accounts is an example of a nominal(temporary-equity) account?

a.Accounts Payable

b.Equipment

c.Drawing

d.Capital

Which of the following accounts is closed at the end of a fiscalperiod by a closing entry?

a.A revenue account

b.An asset account

c.A liability account

d.A Capital account

John makes a payment of $12,000 toward insurance in April forthat month and the following five months. Which of the following isthe appropriate way to record this expense in the books of accountif John uses cash basis of accounting?

a.Record $12,000 insurance expense in April.

b.Record $2,000 insurance expense in each month for six monthsstarting from April.

c.Record $12,000 insurance expense at the end of the month ofSeptember.

d.Record $1,000 insurance expense in each month of the currentfiscal year.

The net income of Plum Consultancy is $500,000. The company haspassed the closing entries for revenue and expense accounts. Whichof the following is the closing entry to transfer the netincome?

a.A debit to Income Summary for $500,000 and a credit to Capitalfor $500,000

b.A debit to Capital for $500,000 and a credit to Income Summaryfor $500,000

c.A debit to Capital for $500,000 and a credit to ConsultingRevenue for $500,000

d.A debit to Consulting Revenue for $500,000 and a credit toCapital for $500,000

After journalizing and posting the adjusting entries from thedata on a work sheet, an accountant should:

a.prepare financial statements from the data on the worksheet.

b.prepare a trial balance.

c.post the journal entries to the accounts in the ledger.

d.complete the work sheet.

Which of the following is true about interim financialstatements?

a.They are prepared before the end of a fiscal year, for aperiod of more than 12 months.

b.They are prepared after the end of a fiscal period, for aperiod of less than 12 months.

c.They are prepared to pass closing entries in advance.

d.They are prepared to determine the status of the operations ofa company.

Answer rating: 100% (QA)

1d prepare a postclosing trial balance After journalizing and posting the closing entries an accountant will prepare a postclosing trial balance A pos... View the full answer