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17) Revenues are:
A) additions to Retained Earnings.
B) subtractions from Retained Earnings.
C) additions to dividends.
D) subtractions from net income.
Question Type: Concept
18) Respectively, Cash, Rent Expense and Accounts Payable are:
A) all permanent accounts.
B) permanent, temporary, and temporary accounts.
C) temporary, permanent, and temporary accounts.
D) permanent, temporary, and permanent accounts.
Question Type: Concept
19) Respectively, dividends, revenues, and expenses are:
A) temporary, permanent, and temporary accounts.
B) temporary, temporary, and permanent accounts.
C) all temporary accounts.
D) all permanent accounts.
Question Type: Concept
20) Respectively, Inventory, Accounts Receivable, and Accounts Payable are:
A) temporary, permanent, and temporary accounts.
B) temporary, temporary, and permanent accounts.
C) all temporary accounts.
D) all permanent accounts.
Question Type: Concept
21) The closing entries show a debit to Retained Earnings of $350, and a credit to Retained
Earnings of $760. There was also a credit to Dividends Payable of $120. This company had a:
A) net loss of $410.
B) net income of $410.
C) net loss of $530.
D) net income of $530.
Question Type: Application
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22) The total revenues of $6,700, total expenses of $3,900 and dividends of $900 were recorded
in the closing entries. The net income for the month was:
A) $5,800.
B) $2,800.
C) $1,900.
D) $3,700.
Question Type: Application
23) The total revenues of $7,000, total expenses of $3,700 and dividends of $900 were recorded
in the closing entries. The net change in Retained Earnings for the month was:
A) $6,100.
B) $3,300.
C) $2,400.
D) $4,200.
Question Type: Application
24) Closing entries included debits to revenues for a total of $5,300, credits to expenses for a
total of $3,400, and a credit to dividends for $700. The net income for the month was:
A) $700.
B) $1,900.
C) $3,400.
D) $4,600.
Question Type: Application
25) Closing entries included debits to revenues for a total of $5,100, credits to expenses for a
total of $3,200, and a credit to dividends for $700. The net change in Retained Earnings for the
month was:
A) $1,200.
B) $1,900.
C) $3,200.
D) $4,400.
Question Type: Application
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26) Closing entries included debits to revenues for a total of $8,000 credits to expenses for a total
of $4,100, and a credit to dividends for $650. The net change in Retained Earnings for the month
was:
A) cannot be calculated with the information provided.
B) $3,250.
C) $3,900.
D) $4,550.
Question Type: Application
27) Which of the following accounts are NOT closed?
A) Rent Expense
B) rent revenue
C) Prepaid Rent
D) both A and B
Question Type: Concept
28) The post-closing accounting equation is:
A) assets = liabilities + common stock + Retained Earnings – dividends.
B) assets = liabilities + common stock + Retained Earnings.
C) assets = liabilities + Retained Earnings + revenues – expenses.
D) assets = liabilities + Retained Earnings – dividends.
Question Type: Concept
29) Closing the revenue, expense, and dividend accounts:
A) yields the amount of net income or net loss for the period.
B) yields the change in Retained Earnings for the period.
C) yields the change in the permanent accounts for the period.
D) yields the final balance in Stockholders’ Equity for the period.
Question Type: Concept
30) ________ entries transfer net income or net loss and dividends to the Retained Earnings
account.
A) Adjusting
B) Closing
C) General
D) Timely
Question Type: Concept
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31) Closing entries are prepared for which of the following reasons?
A) To get the accounts ready for the next accounting period
B) To get the worksheet ready for the next accounting period
C) To get the journal ready for the next accounting period
D) To get the financial statements ready for the next accounting period
Question Type: Concept
32) Which of the following accounts appear on the post-closing trial balance?
A) Rent Expense
B) Sales Revenue
C) Cash
D) Dividends
Question Type: Concept
33) Which of the following accounts would NOT appear on a post-closing trial balance?
A) Common Stock
B) Dividends
C) Dividends Payable
D) Accounts Receivable
Question Type: Concept
34) The account balances on the post-closing trial balance should match the balances in the:
A) general journal.
B) Income Statement.
C) general ledger.
D) Statement of Retained Earnings.
Question Type: Concept
35) The entry to close the revenue accounts includes:
A) a debit to Retained Earnings and credits to the respective revenue accounts.
B) a debit to Dividends and credits to the respective revenue accounts.
C) debits to the respective revenue accounts and a credit to Retained Earnings.
D) debits to the respective revenue accounts and a credit to Dividends.
Question Type: Application
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36) The entry to close the expense accounts includes:
A) a debit to Retained Earnings and credits to the respective expense accounts.
B) a debit to Dividends and credits to the respective expense accounts.
C) debits to the respective expense accounts and a credit to Retained Earnings.
D) debits to the respective expense accounts and a credit to Dividends.
Question Type: Application
37) The entry to close the Dividend account includes:
A) a debit to Common Stock and a credit to Dividends.
B) a debit to Dividends and a credit to Retained Earnings.
C) a debit to Dividends and a credit to Common Stock.
D) a debit to Retained Earnings and a credit to Dividends.
Question Type: Application
38) A company had a normal $51,000 cash balance on their adjusted trial balance. If revenues,
expenses and dividends respectively were $91,000; $20,000 and $3,000 what amount of cash
will be found on the post-closing trial balance?
A) $122,000 normal balance
B) $51,000 normal balance
C) $119,000 normal balance
D) $165,000 normal balance
Question Type: Application