Quiz chapter 4

*Bắt buộc

1. An account that will have a zero balance after closing entries have been journalized and posted is: *

a. Service Revenue.

b. Supplies.

c. Prepaid Insurance.

d. Accumulated Depreciation—Equipment.

2. When a net loss has occurred, Income Summary is: *

a. debited and Retained Earnings is credited.

b. credited and Retained Earnings is debited.

c. debited and Dividends is credited.

d. credited and Dividends is debited.

3. The closing process involves separate entries to close(1) expenses, (2) dividends, (3) revenues, and (4)
income summary. The correct sequencing of the entries is: *

a. (4), (3), (2), (1).

b. (1), (2), (3), (4).

c. (3), (1), (4), (2).

d. (3), (2), (1), (4).

4. Which types of accounts will appear in the post-closing trial balance? *

a. Permanent (real) accounts.

b. Temporary (nominal) accounts.

c. Only Assets and Liabilities accounts.

d. None of these answer choices is correct

5. The proper order of the following steps in the accounting cycle is: *

a. prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post
adjusting
b. journalize transactions, prepare unadjusted trial balance, post to ledger accounts, journalize and post
adjusting entries.

c. journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post
adjusting

d. prepare unadjusted trial balance, journalize and post adjusting entries, journalize transactions, post to
ledger accounts.

6. The dividend: revenue account is closed to the Income Summary account in order to properly
determine net income (or loss) for the period. *

True

False

7. The income summary account *

a. is a permanent account.

b. appears on the balance sheet.

c. appears on the income statement.

d. is a temporary account.

8. In preparing closing entries *

a. each revenue account will be credited.

b. each expense account will be credited.

c. the owner's capital account will be debited if there is net income for the period.

d. the owner's drawings account will be debited.

9. The balance in the income summary account before it is closed will be equal to *

a. the net income or loss on the income statement.

b. the beginning balance in the owner's capital account.

c. the ending balance in the owner's capital account.

d. zero.

10. The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the
following information. The entry to close the revenue account includes a: *
Hình ảnh không có chú thích

a. debit to Income Summary for $1,800.

b. credit to Income Summary for $1,800.

c. debit to Income Summary for $7,000.

d. credit to Income Summary for $7,000.