Ch.5 Quiz

Instructions
Read the questions carefully.

This assessment is worth 100 points.

  1. The first step in the accounting cycle is to analyze and record transactions and events that occur during the accounting period.   (5 points)

      
      

  2. Plant assets and intangible assets are usually long-term assets used to produce or sell products and services.   (5 points)

      
      

  3. For a partnership, the equity section is divided into two main accounts: Capital Stock and Retained Earnings.   (5 points)

      
      

  4. After posting the entries to close all revenue accounts and all expense accounts, the Income Summary account of Waif Services has a $4,000 debit balance. This result implies that Waif Services earned a net income of $4,000.   (5 points)

      
      

  5. The Income Summary account is used to close the permanent accounts at the end of an accounting period.   (5 points)

      
      

  6. A post-closing trial balance is a list of permanent accounts and their balances from the general ledger after all closing entries are journalized and posted.   (5 points)

      
      

  7. The aim of a post-closing trial balance is to verify that (1) total debits equal total credits for temporary accounts, and (2) all temporary accounts have zero balances.   (5 points)

      
      

  8. A work sheet is a tool to help bring together information needed in adjusting the accounts and preparing the financial statements.   (5 points)

      
      

  9. A work sheet is usually prepared before the adjustments are entered in the accounts.   (5 points)

      
      

  10. On the work sheet, a net income is entered in the Income Statement Credit column and in the Statement of Changes in Owner's Equity or Balance Sheet Debit column.   (5 points)

      
      

  11. Another name for temporary accounts is:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  12. Revenues, expenses, and owner's withdrawals accounts, which are closed at the end of each accounting periods, are referred to as:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  13. Which of the following statements is incorrect?   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  14. A classified balance sheet:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  15. J. Awn, the proprietor of Awn Services, withdrew $8,700 from the business during current year. These withdrawals will result in a closing entry at the end of the year, as follows:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  16. A compnay's ledger accounts and their end-of-period balances before closing entries are posted are shown below, what amount will be posted to Joe Cool, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)





       (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  17. An error is indicated if the following account has a balance appearing on the post-closing trial balance:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  18. Which of the following statements is incorrect?   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  19. Statements that show the effects of proposed transactions as if the transactions had already occurred are called:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  20. Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance?   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  



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