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| 1.
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Which of the following accounts is not a temporary account? |
| | A) | Income Summary |
| | B) | Rental Revenue |
| | C) | Capital |
| | D) | Withdrawals |
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| 2.
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The subtotals of the Income Statement columns of the work sheet are $3,500 and $4,900, respectively. If the subtotal of the Balance Sheet Debit column is $9,600, then the subtotal of the Balance Sheet Credit column should be |
| | A) | $1,400 |
| | B) | $11,000 |
| | C) | $8,200 |
| | D) | $6,800 |
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| 3.
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The subtotals of the Income Statement columns of the work sheet are $6,200 and $4,900, respectively. If the subtotal of the Balance Sheet Debit column is $19,000, then the subtotal of the Balance Sheet Credit column should be |
| | A) | $20,300 |
| | B) | $1,300 |
| | C) | $17,700 |
| | D) | $14,400 |
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| 4.
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Revenue and expense accounts at the beginning and end of the accounting period should have |
| | A) | a balance of zero |
| | B) | balances of cumulative amounts of activity during the period |
| | C) | a net balance (credits minus debits) equal to the capital account |
| | D) | a net balance equal to assets minus liabilities |
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| 5.
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After the closing procedure is complete, which of the documents proves the equality of debits and credits? |
| | A) | Income Statement |
| | B) | Account form balance sheet |
| | C) | Post-Closing trial Balance |
| | D) | Work Sheet |
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| 6.
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At the end of the fiscal year, an adjusting entry was made for accrued salaries of $500. On the first day of the new year the adjusting entry was reversed. The salaries for one week, $1,250, were paid on the first Friday. The entry to record paying the salaries expense for the week would be a |
| | A) | Sal. Exp., dr., $750; Salaries Payable, dr., $500; Cash, cr., $1,250 |
| | B) | Sal. Exp., dr., $500; Salaries Payable, dr., $750; Cash, cr., $1,250 |
| | C) | Salaries Exp., dr., $1,250; Cash, cr., $1,250 |
| | D) | Salaries Exp., dr., $1,250; Salaries Payable, cr., $1,250 |
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| 7.
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Optional entries that transfer the balances in balance sheet accounts which arose as a result of certain adjusting entries to income statement accounts is the definition for which term below? |
| | A) | adjusting entries |
| | B) | reversing entries |
| | C) | closing entries |
| | D) | declarations of cash dividends |
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| 8.
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The last account listed on the post-closing trial balance for a single proprietorship business is the |
| | A) | Capital account |
| | B) | Withdrawals account |
| | C) | Retained Earnings account |
| | D) | Common Stock account |
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| 9.
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Which of the following accounts is not a permanent account? |
| | A) | Assets |
| | B) | Liabilities |
| | C) | Owner's Capital |
| | D) | Owner's withdrawals |
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| 10.
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Which of the following accounts is not a current liability? |
| | A) | accumulated amortization |
| | B) | accounts payable |
| | C) | wages payable |
| | D) | unearned revenue |
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| 11.
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Which of the following statement is not true? |
| | A) | A post-closing trial balance is a list of temporary accounts and their balances after all closing entries are journalized and posted. |
| | B) | The purpose of post-closing trial balance is to verify that total debits equal total credits for permanent accounts. |
| | C) | The purpose of post-closing trial balance is to verify that all temporary accounts have zero balances. |
| | D) | Permanent accounts are assets, liabilities, and owner's capital. |
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| 12.
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Which of the following statement is true regarding closing entries? |
| | A) | To close revenue accounts, one should debit the Income Summary account, and credit the revenue accounts. |
| | B) | To close expenses accounts, one should debit the expenses accounts, and credit the Income Summary account. |
| | C) | To close Owner's withdrawals account, one should debit the Owner's Capital account, and credit the Owner's withdrawals account. |
| | D) | All of the above. |
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| 13.
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Tylex company's balance sheet shows current assets $72,500, capital assets $122,000, current liabilities $46,500, long-term liabilities $84,000, and Owner's capital $64,000. What is Tylex's current ratio? |
| | A) | a.1.56 |
| | B) | 0.59 |
| | C) | 2.04 |
| | D) | 0.55 |
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