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The purpose of closing entries is to transfer

The purpose of closing entries is to transfer:

a. Accounts Receivable to Retained Earnings when an account is fully paid.

b. Balances in temporary accounts to a permanent account.

c. Inventory to Cost of Goods Sold when merchandise is sold.

d. Assets and liabilities when operations are discontinued.

 

 

135. Which of the following is a possible closing entry?

a. Debit Cash, credit Service Revenue.

b. Debit Cash, credit Retained Earnings.

c. Debit Service Revenue, credit Retained Earnings.

d. Debit Dividends, credit Retained Earnings.

 

 

136. Permanent accounts would not include:

a. Accounts Payable.

b. Office Supplies.

c. Utilities Expense.

d. Common Stock.

 

 

137. Temporary accounts would not include:

a. Salaries Payable.

b. Advertising Expense.

c. Supplies Expense.

d. Dividends.

 

 

138. Of the following six accounts, which ones have temporary balances:

(1) Service Revenue

(2) Dividends

(3) Salaries Expense

(4) Common Stock

(5) Retained Earnings

(6) Cash

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

b. (4), (5), and (6).

c. (2), (4), and (5).

d. (1), (3), and (5).

 

 

139. The ending Retained Earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year. The company declared a dividend of $1.3 million during the year. What was the net income earned during the year?

a. $1.9 million.

b. $3.2 million.

c. $4.5 million.

d. $1.3 million.

 

 

140. The Retained Earnings account had a beginning credit balance of $26,000. During the period, the business had a net loss $12,000, and the company paid dividends of $8,000. The ending balance in the Retained Earnings account is:

a. $6,000.

b. $30,000.

c. $22,000.

d. $14,000.

 

 

141. The closing process includes which of the following?

a. Closing the balance of the retained earnings account to zero.

b. Closing the balance of only the dividends account to zero.

c. Closing the balances of only revenue and expense accounts to zero.

d. Closing the balances of revenue, expense and dividend accounts to zero.

 

 

142. Frosty Inc. has the following balances on December 31 prior to closing entries:

 

Revenues

$35,000

Retained Earnings, Jan. 1

10,000

Cash

7,000

Expenses

23,000

Accounts Payable

4,000

Dividends

1,000

Supplies

18,000

 

Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries?

a. Increase of $11,000.

b. Increase of $13,000.

c. Increase of $12,000.

d. Increase of $14,000.

 

 

143. A list of all accounts and their balances after posting closing entries is referred to as:

a. A trial balance.

b. An adjusted trial balance.

c. A post-closing trial balance.

d. An accounting trial balance.

 

 

 

144. Which one of the following accounts would NOT have a balance after closing entries?

a. Unearned Revenue.

b. Supplies.

c. Prepaid Rent.

d. Dividends.

 

 

145. Which of the following accounts is(are) listed in a post-closing trial balance?

a. Prepaid Rent.

b. Accounts Payable.

c. Salaries Expense.

d. Two of these three accounts would be included in a post-closing trial balance.

 

 

146. A post-closing trial balance:

a. Is a list of all accounts and their balances after adjusting entries.

b. Is a list of all accounts and their balances before adjusting entries.

c. Is a list of all accounts and their balances after closing entries.

d. Is a trial balance adjusted for cash-basis accounting.

Jan 27 2020 View more View Less

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