ACC 179 | Updates in Management Accounting Part 1

Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Quiz 2 Materials:
Writing Materials and Ballpen

Multiple Choice. Write the letter of the best answer.

1. [Statement 1] There is sufficient information on a post-closing trial balance to prepare an income

statement.
[Statement 2] The post-closing trial balance will contain only real accounts.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. None of the statements are correct.
2. [Statement 1] The Income Summary account will appear on the post-closing trial balance.
[Statement 2] The post-closing trial balance contains asset, liability, withdrawal and capital accounts.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. None of the statements are correct.
3. [Statement 1] The final trial balance is called a post-closing trial balance.
[Statement 2] A reversing entry is a journal entry which is the exact opposite of the related adjusting
entry made at the end of the period.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. None of the statements are correct.
4. [Statement 1] To simplify the recording of regular transactions in the next accounting period, all
adjusting journal entries are reversed.
[Statement 2] Post-closing trial balance tests the equality of the accounts after the adjustments and
the closing entries are posted.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. None of the statements are correct.

This document is the property of PHINMA EDUCATION

 ACC 179 | Updates in Management Accounting Part 1
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

5. [Statement 1] Supplies expense is a temporary account.

[Statement 2] A revenue account is closed with a credit to the revenue account and a debit to Income
Summary.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. None of the statements are correct.
6. Which of the following accounts will appear on the post-closing trial balance?
a. building
b. depreciation expense - building
c. owner withdrawals
d. service revenues
7. A final check on the adjusting and closing process is provided by the
a. worksheet
b. financial statements
c. post-closing trial balance
d. adjusted trial balance
8. If a trial balance were to be prepared on the first day of the new year, and the account Salaries
Expense had a credit balance, you would know that
a. the trial balance is a post-closing trial balance
b. the adjusting entries have been recorded
c. the trial balance is an adjusted trial balance
d. a reversing entry has been made
9. Reversing entries are
a. optional
b. made to record a change in corporate objectives
c. required by generally accepted accounting principles
d. made prior to preparing a post-closing trial balance
10. Which of the following comes last in the accounting process?
a. preparation of a post-closing trial balance
b. preparation of an adjusted trial balance
c. worksheet preparation
d. journalizing external transactions
11. Accrued expenses should be reported as
a. assets on the balance sheet
b. expenses on the income statement
c. liabilities on the balance sheet

This document is the property of PHINMA EDUCATION

 ACC 179 | Updates in Management Accounting Part 1
Student Activity Sheet Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

d. revenues on the income statement

12. At the beginning of 2017, an entity purchased a fire insurance policy covering a property for a period
of two years. The P 5,600 cost of the policy was paid in cash. At the end of 2017, the company will
reduce Prepaid Insurance for the policy by
a. P 0
b. P 467
c. P 5,600
d. P 2,800

13. A deferred revenue should be recorded by a

a. buyer when a service is received on payment of cash
b. seller when a customer pays for a service before the service is rendered
c. seller when a service is rendered before receipt of cash
d. seller when a service is rendered on receipt of cash

14. How would the proceeds received from the advance sale of non-refundable tickets for a theatrical
performance be reported in the seller’s financial statements before the performance?
a. Revenue for the entire proceeds
b. Revenue to the extent of related costs expended
c. Unearned revenue for the entire proceeds
d. Unearned revenue to the extent of related costs expended
15. Salaries and wages that are recorded as expenses at year-end but remain unpaid are an example
of
a. a deferred expense
b. a deferred revenue
c. an accrued expense
d. an accrued revenue

***end of quiz***

This document is the property of PHINMA EDUCATION