Question 1

Which of the following accounts is not closed to the Income Summary at the end of the accounting period? (More than one answer may be correct).

Accepted Answer

Accumulated Depreciation is a contra asset account and is not closed to the income summary at the end of the accounting period. The other accounts (Rent expense, Unearned Revenue, and Supplies Expense) are all expense or liability accounts that are closed to the income summary at the end of the period.

Question 2

Prepare the closing entries.

Accepted Answer

The answer of Prepare the closing entries.
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Question 3

Which of the following accounts would never appear in the after-closing trial balance? (More than one answer may be correct)

Accepted Answer

Dividends are distributions of earnings to shareholders and are not considered expenses or revenues. Therefore, they do not appear in the after-closing trial balance.

Question 4

What is the total debits on the after-closing trial balance?

Accepted Answer

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Question 5

What is the balance in Retained Earnings after posting closing entries at December 31?

Accepted Answer

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Question 6

Which accounts are closed to Income Summary?

Accepted Answer

Only revenue and expense accounts are closed to Income Summary as part of the closing process. Dividends are not included as they are not considered an expense. Option A is too broad as it includes all accounts, including permanent accounts, which are not closed at the end of the period. Option D is incorrect because nominal accounts, also known as temporary accounts, are the accounts that are closed to Income Summary, not those that are not nominal.

Question 7

Indicate those items for which generally accepted accounting principles require disclosure in notes accompanying the financial statements. (More than one answer may be correct.)

Accepted Answer

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Question 8

Which of the following journal entries is required to close the Income Summary account of a profitable company?

Accepted Answer

Income Summary account is used to summarize the revenue and expenses for the period. At the end of the period, the balance of the Income Summary account is transferred to the Retained Earnings account. Since the company is profitable, the Income Summary account would have a credit balance. Therefore, we need to debit the Income Summary account and credit the Retained Earnings account to close the Income Summary account.

Question 9

Which accounts will appear on the balance sheet?

Accepted Answer

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Question 10

Which of the following financial statements is generally prepared first?

Accepted Answer

The income statement is generally prepared first because it provides the net income or loss, which is needed to prepare the statement of retained earnings and subsequently the balance sheet.

Question 11

The accountant for Successful Consulting prepared the following "Adjusted" Trial Balance at December 31, 20 __ after one year of operations:

Prepare an After-Closing Trial Balance.

Accepted Answer

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Question 12

The accountant for Sheldrake Consulting prepared the following "Adjusted" Trial Balance at December 31, 2011, after one year of operations:
Prepare closing entries for Sheldrake Consulting.

Accepted Answer

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Question 13

What is the balance in Income Summary before it is closed to Retained Earnings?

Accepted Answer

Income Summary has a debit balance of $61 before it is closed to Retained Earnings.

Question 14

Which of the following accounts would never be reported in the income statement as an expense?

Accepted Answer

Dividends are not considered an expense and should not be reported in the income statement. Instead, dividends are reported in the statement of changes in equity or in the notes to the financial statements. A, B, and C are all expenses that would typically be reported in the income statement.

Question 15

Ski West adjusts its accounts at the end of each month, but closes them only at the end of the calendar year (December 31). The ending balances in the Equipment Rental Revenue account and the Cash account in February and March appear below. Ski West prepares financial statements showing separately the operating results of each month. In the financial statements prepared for the month ended March 31, Equipment Rental Revenue and Cash should appear as follows:

Accepted Answer

Equipment Rental Revenue for March is $6,300, which is the difference between February and March balances. Cash should be $26,500, the balance at the end of March.

Question 16

For a publicly held company, indicate which of the following activities are likely to occur at or shortly after year-end. (More than one answer may be correct.)

Accepted Answer

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Quiz 5: The Accounting Cycle: Reporting Financial Results

Which of the following accounts is not closed to the Income Summary at the end of the accounting period? (More than one answer may be correct) .