Question 1

On which financial statement will Income Summary be shown?

a. balance sheet

b. retained earnings statement

c. no financial statement

d. income statement

Question 2

What would be the consequence of skipping the completion of closing entries?

a. The adjusting entries could not be completed

b. It would not be easy to compare results of different accounting periods

c. The financial statements could not be completed

d. The daily transactions would not be correct

Question 3

When closing Wage Payable, the balance is transferred to:

a. INCOME SUMMARY

b. LIABILITIES

c. THE ACCOUNT IS NOT CLOSED

d. ASSETS

Question 4

When closing Fees Earned, the balance is transferred to

a. THE ACCOUNT IS NOT CLOSED

b. RETAINED EARNINGS

c. REVENUES

d. ASSETS

Question 5

When closing Dividends, the balance is transferred to

a. THE ACCOUNT IS NOT CLOSED

b. RETAINED EARNINGS

c. DIVIDENDS

d. INCOME SUMMARY

Question 6

When closing Prepaid Insurance, the balance is transferred to:

a. REVENUES

b. ASSETS

c. INCOME SUMMARY

d. THE ACCOUNT IS NOT CLOSED

Question 7

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

a. Depreciation Expense

b. All of these accounts will be closed

c. Rent Expense

d. Fees Earned

Question 8

Which of the following sequence is correct for the accounting cycle?

a. journalize, post, analyze, adjusting entries, closing entries, financial statements

b. analyze, journalize, post, adjusting entries, financial statements, closing entries

c. analyze, journalize, post, financial

d. analyze, post, journalize, financial statements, closing entries, adjusting entries

Question 9

Which of these titles would appear in the Income Statement columns of the end-of-period spreadsheet?

a. Cash

b. Unearned Revenue

c. Net Loss

d. Prepaid Insurance

Question 10

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $83,900 and 77,500, respectively. What is the amount of the net income or net loss for the period?

a. $77,500 net loss

b. $6,400 net income

c. $6,400 net loss

d. $83,900 net income