Which of the following describes the purpose(s) of closing entries? a. Adjust the balances of asset and liability accounts for unrecorded activity during the period.b. Transfer the balances of temporary accounts (revenues, expenses, and dividends) to Retained Earnings. c. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period. d. Both b. and c.

7. Which of the following statements is correct? a. The post-closing trial balance contains income and expense accounts. b. Income is recorded in the period it is collected regardless of when it was earned. c. The expired portion of a prepayment is income. С. d. Interest is earned or incurred based on passage of time.

What is the goal of the closing process? a.to verify that all adjustments have been made b.to make sure all temporary accounts have a zero balance c.to end the accounting period with a profit d.to move all equity accounts to Retained Earnings

The goal of closing entries does NOT​ include:   A. to clear revenue and expense accounts.   B. to clear the Withdrawals account.   C. to clear the Cash account.   D. to update the Capital account balance.

A major purpose of preparing closing entries is toa. update the Retained Earnings account.b. adjust the asset accounts to theircorrect current balances

(10) After the closing entries have been journalized and posted, but prior to the next accounting period, which of the following accounts would have a balance? a. Fund Balance--Unassigned b. Appropriations c. Other Financing Uses d. Revenues

Which of these accounts is (are) credited during the closing process? Sales Revenue onlySales Returns and Allowances onlyInterest Revenue onlySales Revenue, Sales Returns and Allowances, and Interest Revenue

For each of the tollowing transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an nddition () or a subtraction ( Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. a. Recorded $200 of depreciation expense. b. Sold land that had originally cost $9,000 for $14,000 in cash. c. Acquired a new machine under a financing lease. The present value of future lease payments, discounted at 10%, was $10,000. d. Recorded the first annuai payment of $2.200 for the leased machine (in part c). e. Recorded a $5,100 payment for the cost of developing and registering a trademark. f. Recognized periodic amortization for the trademark (in part e) using a 34-year…

1. Post-closing trial balance include all of the following account, except a. assetb. liabilitiesc. capitald. withdrawal   2. Which adjusting journal entries are subject to reversing entries? a. Accrual of incomeb. Deferral of income – liability methodc. Deferral of expense – asset methodd. Depreciation expense   3. On column 7 and 8 of worksheet or the Income Statement columns, what is the financial performance if debit is greater than credit? a. Breakevenb. Net Incomec. Net Lossd. Gross Income   4. On column 9 and 10 of worksheet or the Balance Sheet columns, what is the difference if debit is greater than credit? a. Breakevenb. Net Incomec. Net Lossd. Gross Income

Which of the following entries properly closes a temporary account? Select one: a. Income Summary XX Cash b. C. Debit Credit Expense Accumulated Depreciation XX Income Summary Income Summary d. e. XX Retained Earnings XX Dividends Debit Credit Debit Credit XX Debit Credit Income Summary XX Revenue XX XX Debit Credit XX XX