Multiple Choice Answers

The asset, liability, and owner’s capital accounts appear on all of the following EXCEPT the:
A. income statement.
B. balance sheet.
C. post closing trial balance.
D. worksheet.

The entry to close the Accumulated Depreciation account may include a debit to the __________ account and a credit to the __________ account.
A. Income Summary; Accumulated Depreciation
B. Depreciation Expense; Accumulated Depreciation
C. Accumulated Depreciation; Income Summary
D. None of the above

Information in the financial statements provides answers to many questions, including:
A. How much do customers owe the business?
B. What are the business’ current and long term plans for expansion?
C. Has the business achieved its net income goal for the year?
D. All of the above

After the worksheet has been completed, the next step in the accounting cycle is to:
A. journalize and post the closing entries.
B. journalize and post the adjusting entries.
C. prepare the post closing trial balance.
D. prepare the financial statements.

After the data about transactions have been posted, the next step in the accounting cycle is to:
A. prepare the financial statements.
B. prepare the post closing trial balance.
C. prepare the worksheet.
D. journalize and post the adjusting entries

Which of the following accounts would be closed?
A. Accounts Receivable
B. Accumulated Depreciation
C. Supplies Expense
D. Joan Wilson, Capital

After the closing entries are posted to the ledger, each revenue account will have __________ balance.
A. a zero
B. a debit
C. a credit
D. either a debit or a credit

A post closing trial balance could include all of the following EXCEPT the __________ account.
A. owner’s capital
B. Cash
C. Fees Income
D. Accounts Receivable

Which of the following accounts is a permanent account?
A. Supplies
B. Supplies Expense
C. Owner’s drawing
D. Fees Income

Which of the following statements is correct?
A. The Balance Sheet section of the worksheet contains the data that is used to make closing entries.
B. The balance of the owner’s drawing account will appear on the post closing trial balance.
C. Closing entries are entered directly on the worksheet.
D. Preparation of the post closing trial balance is the last step in the end-of-period routine.