Q.1
Also known as the "Long-term Assets"
  • Non-current Assets
  • Current Assets
  • Non-current liabilities
  • Current Liabilities
Q.2
The journal entry to close Income Summary when there is a net loss is
  • debit Revenues, credit Income Summary
  • debit Retained earnings; credit Income Summary
  • debit Retained earnings; credit Revenues
  • debit Income Summary; credit Retained earnings
Q.3
Which of the following accounts is a temporary account?
  • cash
  • accounts payable
  • revenue
  • capital
Q.4
Items 5-7 refer to the following information:Cost of equipment (year end$000Allowance for depreciation (January 1,$000Rate of depreciation 10%Depreciation method : Reducing Balance What is the annual depreciation for 2014?
  • $2 500
  • $7 500
  • $9 000
  • $10 000
Q.5
Temporary accounts begin each new fiscal period with a
  • debit balance
  • credit balance
  • zero balance
  • balance equal to the net income
Q.6
Income Summary is a(n)
  • asset account
  • liability account
  • temporary account
  • permanent account
Q.7
The last step in the accounting cycle is to
  • record transactions in a journal
  • prepare a work sheet
  • journalize and post closing entries
  • prepare a post-closing trial balance
Q.8
The fourth step is to close which of the following accounts?
  • share capital
  • dividend
  • revenue
  • expense
Q.9
Which account should be closed first?
  • Revenue
  • Expense
  • Income Summary
  • Dividends
Q.10
Which of the following is a "real" account?
  • cash
  • expenses
  • revenue
  • income summary
Q.11
After closing entries are posted, Retained earnings' balance should be the same as shown
  • on the balance sheet at the end of the fiscal period
  • on the income statement for the fiscal period
  • on the adjusted trial balance
  • on the trial balance
Q.12
When the total revenues are greater than the total expenses,
  • the Income Summary account has a credit balance
  • The Income Summary account has a debit balance
  • debits equal credits
  • none of these
Q.13
Which account would not be contained on a post-closing trial balance?
  • Unearned Revenue
  • Accumulated Depreciation - Office Equipment
  • Share capital
  • Dividends
Q.14
What is the source of information for completing the closing entries?
  • Unadjusted trial balance
  • Income Statement
  • Adjusted trial balance
  • Work sheet
Q.15
Into which account is the amount of net income or net loss closed?
  • Share capital
  • Retained Earnings
  • Cash
  • Dividends
Q.16
After the first two closing entries are posted, the balance of the Income Summary account should equal the net income/loss on the
  • balance sheet
  • statement of owner's equity
  • work sheet
  • income statement
Q.17
If a corporation does not pay out dividends, it would only prepare three closing entries.
  • True
  • False
Q.18
Temporary accounts include assets, expenses, and dividends.
  • True
  • False
Q.19
Retained Earning can be found under _____________.
  • Assets
  • Liabilities
  • Owner's Equity
Q.20
Following are accounts under________.•Trade and other payable•Provision•Financial liabilities•Liabilities for taxes
  • Assets
  • Liabilities
  • Owner's Equity
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