- Description
ACC 290 Week 5 Practice Connect Knowledge Check (2019 New)
Complete the Week 5 Knowledge Check in Connect.
Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.
These assignments have earlier due dates, so plan accordingly.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
One purpose of closing entries is to zero out the balances in the:
Multiple Choice
expense and capital accounts.
asset and liability accounts.
revenue and expense accounts.
liability and capital accounts.
Identify the accounts below that are ALL classified as temporary accounts.
Multiple Choice
Owner’s Drawing, Owner’s Capital, Income Summary
Accounts Receivable, Depreciation Expense, Fees Income
Wages Expense, Accumulated Depreciation, Fees Income
Owner’s Drawing, Depreciation Expense, Income Summary
The first two closing entries to the Income Summary account indicate a debit of $47,000 and a credit of $41,000. The third closing entry would be:
Multiple Choice
debit Income Summary $47,000; credit Capital $47,000
debit Income Summary $41,000; credit Expenses $41,000
debit Capital $6,000; credit Income Summary $6,000
debit Income Summary $6,000; credit Drawing $6,000
Which of the following statements is not correct?
Multiple Choice
The balance of the owner’s capital account on the adjusted trial balance will usually be different than that reported on the post-closing trial balance.
The audit trail should be used to trace data through the accounting records to find and correct errors.
If the post-closing trial balance does not balance, there are errors in the accounting records.
The balance of the owner’s capital account, as reflected on the post-closing trial balance, will match the amount reported on the income statement.
After the closing entries are posted to the ledger, each revenue account will have:
Multiple Choice
a debit balance.
either a debit or a credit balance.
a credit balance.
a zero balance.
The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be:
Multiple Choice
debit Capital $11,000; credit Income Summary $11,000.
debit Income Summary $11,000; credit Capital $11,000.
debit Income Summary $11,000; credit Drawing $11,000.
debit Revenue $64,000; credit Expenses $53,000.
Listed below in random order are the steps in the accounting cycle.
(1) prepare the financial statements
(2) post the journal entries to the ledger
(3) record journal entries
(4) prepare a trial balance
What is the proper order of these steps?
Multiple Choice
(2), (3), (4), (1)
(3), (2), (4), (1)
(4), (3), (2), (1)
(3), (2), (1), (4)
Information in the financial statements provides answers to many questions, including:
Multiple Choice
Has there been a lot of employee turnover?
How much do customers owe the business?
Has the business achieved its net income goal for the year?
What are the business’ current and long term plans for expansion?
Which of the following accounts is a permanent account?
Multiple Choice
Supplies
Fees Income
Owner’s drawing
Supplies Expense
If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is:
Multiple Choice
a debit to Capital and a credit to Income Summary.
a debit to Income Summary and a credit to Fees Income.
a debit to Capital and a credit to Drawing.
a debit to Income Summary and a credit to Capital.
Use the following account balances from the adjusted trial balance of Gees Catering:
Account Debit Balance Credit Balance
Cash 10,000
Accounts Payable 2,000
- Gees, Drawing 1,000
- Gees, Capital 18,000
Fees Revenue 10,000
Salary Expense 7,000
Rent Expense 6,000
Supplies Expense 6,000
________________________________________
What is the amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year?
Multiple Choice
$26,000
$28,000
$ 8,000
$18,000
The entry to transfer a net loss to the owner’s capital account would include:
Multiple Choice
a debit to the Capital account and a credit to Cash.
a debit to Income Summary and a credit to Capital.
a debit to the Capital account and a credit to Income Summary.
a debit to the Capital account and a credit to the Drawing account.
Use the following account balances from the adjusted trial balance of Gees Catering:
Account Debit Balance Credit Balance
Cash 10,000
Accounts Payable 2,000
- Gees, Drawing 1,000
- Gees, Capital 18,000
Fees Revenue 10,000
Salary Expense 7,000
Rent Expense 6,000
Supplies Expense 6,000
________________________________________
Select the correct closing entry that Gees Catering would make to close the owner’s withdrawal account at the end of the accounting period.
Multiple Choice
- Gees, Drawing $ 1,000
Income Summary $ 1,000
________________________________________
Income Summary $ 1,000
- Gees, Drawing $ 1,000
________________________________________
- Gees, Drawing $ 1,000
- Gees, Capital $ 1,000
________________________________________
- Gees, Capital $ 1,000
- Gees, Drawing $ 1,000
________________________________________
The first step in the closing process is to close:
Multiple Choice
the expense account(s).
the capital account.
the drawing account.
the revenue account(s).
Which of the following statements is correct?
Multiple Choice
Closing entries are entered directly on the worksheet.
The Balance Sheet section of the worksheet contains the data that is used to make closing entries.
Preparation of the post-closing trial balance is the last step in the end-of-period routine.
The balance of the owner’s drawing account will appear on the post-closing trial balance.
Use the following account balances from the adjusted trial balance of ABC Consulting:
Account Debit Balance Credit Balance
Cash 20,500
Accounts Payable 2,000
- Conway, Drawing 600
- Conway, Capital 13,000
Fees Revenue 18,000
Salary Expense 2,600
Rent Expense 3,000
Supplies Expense 1,900
Advertising Expense 800
________________________________________
What is the amount that ABC Consulting would report as the ending balance in the B. Conway, Capital account at the end of the year?
Multiple Choice
$22,100.
$3,900
$31,000.
$13,000.
Trial balances are prepared in a certain order. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared?
Multiple Choice
post-closing trial balance, adjusted trial balance, trial balance.
trial balance, adjusted trial balance, post-closing trial balance.
adjusted trial balance, trial balance, post-closing trial balance.
trial balance, post-closing trial balance, adjusted trial balance.
The asset, liability, and owner’s capital accounts appear on all of the following except the:
Multiple Choice
post-closing trial balance.
balance sheet.
income statement.
worksheet.
Which of the following statements is not correct?
Multiple Choice
The owner’s drawing account is closed to the Income Summary account.
The Income Summary account is used only at the end of an accounting period to help with the closing procedure.
The Income Summary account is a temporary owner’s equity account.
Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period.
The revenue account Fees Income is closed by:
Multiple Choice
debiting Income Summary and crediting Fees Income.
debiting Cash and crediting Fees Income.
debiting Fees Income and crediting Income Summary.
debiting the owner’s capital account and crediting Fees Income.
After the worksheet has been completed, the next step in the accounting cycle is to:
Multiple Choice
prepare the post-closing trial balance.
post the closing entries.
prepare the financial statements.
journalize the closing entries.
A post-closing trial balance could include all of the following accounts except the:
Multiple Choice
owner’s capital account.
Accounts Receivable account.
Cash account.
Fees Income account.
All of the following accounts will appear on the post-closing trial balance except:
Multiple Choice
Depreciation Expense
Capital
Land
Accounts Payable
Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period?
Multiple Choice
Debit Penny Pincher, Drawing; credit Penny Pincher, Capital
Debit Income Summary; credit Penny Pincher, Drawing
Debit Penny Pincher, Capital; credit Penny Pincher, Drawing
Debit Penny Pincher, Capital; credit Income Summary
All of the following accounts will appear on the post-closing trial balance except:
Multiple Choice
Accumulated Depreciation-Equipment.
Depreciation Expense-Equipment.
Equipment.
Accounts Payable.
Which of the following accounts will not normally have a zero balance after the closing entries have been posted?
Multiple Choice
Fees Income
Capital
Rent Expense
Income Summary
Which of the following accounts has a normal credit balance?
Multiple Choice
- Stark, Drawing
Accounts Payable
Supplies Expense
Accounts Receivable
Use the following account balances from the adjusted trial balance of ABC Consulting:
Account Debit Balance Credit Balance
Cash 20,500
Accounts Payable 2,000
- Conway, Drawing 600
- Conway, Capital 13,000
Fees Revenue 18,000
Salary Expense 2,600
Rent Expense 3,000
Supplies Expense 1,900
Advertising Expense 800
________________________________________
Select the correct closing entry that ABC Consulting would make to close the income summary account at the end of the accounting period.
Multiple Choice
debit Income Summary $9,700 and credit B. Conway, Capital for $9,700.
debit B. Conway, Capital $18,000 and credit Income Summary for $18,000.
debit B. Conway, Capital $9,700 and credit Income Summary for $9,700.
debit B. Conway, Capital $600 credit B. Conway, Drawing for $600.
Use the following account balances from the adjusted trial balance of ABC Consulting:
Account Debit Balance Credit Balance
Cash 20,500
Accounts Payable 2,000
- Conway, Drawing 600
- Conway, Capital 13,000
Fees Revenue 18,000
Salary Expense 2,600
Rent Expense 3,000
Supplies Expense 1,900
Advertising Expense 800
________________________________________
Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period.
Multiple Choice
debit B. Conway, Capital $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.
debit Income Summary $8,300 and credit B. Conway, Capital for $8,300.
debit Salary Expense $2,600; debit Rent Expense $3,000; debit Supplies Expense $1,900; debit Advertising Expense $800 and credit Income Summary $8,300.
debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.
The entry to close the Income Summary account may include:
Multiple Choice
a debit to Income Summary and a credit to the owner’s capital account.
a debit to Income Summary and a credit to the owner’s drawing account.
a debit to Cash and a credit to Income Summary.
a debit to Income Summary and a credit to Cash.