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ACC 290 Week 5 Practice Connect Knowledge Check (2019 Latest)

ACC 290 Week 5 Practice Connect Knowledge Check (2019 Latest)
 

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.

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