1) Which of the following sequences of documents or records describes the proper sequence in the accounting cycle? a. Source documents, journal, ledger, work sheet, financial statements b. Source documents, work sheet, journal, ledger, financial statements c. Source documents, ledger, journal, work sheet, financial statements d. Work sheet, source documents, financial statements, ledger, journal e. Financial statements, journal, ledger, source documents, work sheet
1) Which of the following sequences of documents or records describes the proper sequence in
the accounting cycle?
a. Source documents, journal, ledger, work sheet, financial statements
b. Source documents, work sheet, journal, ledger, financial statements
c. Source documents, ledger, journal, work sheet, financial statements
d. Work sheet, source documents, financial statements, ledger, journal
e. Financial statements, journal, ledger, source documents, work sheet
2) Identify all temporary accounts
a. Liabilities, revenue, and expenses
b. Revenue, liabilities, and the owner's Drawing
c. Assets, liabilities, and owner's Drawing
d. Revenue, expenses, and the Owner's Drawing
e. Liabilities and assets
3) If Nemo’s Company total revenue for the year was $48,000 and total expenses were $40,000,
the third closing entry would be:
a. Debit Income Summary; credit Nemo’s, Capital.
b. Debit Nemo’s, Capital; credit Income Summary.
c. Debit Income Summary; credit Income from Services.
d. Debit Income from Services; credit Income Summary.
e. Debit Nemo’s, Capital; credit Nemo’s, Drawing.
4) If the Income Summary account has a debit balance of $20,000 before closing, and the
Drawing account has a balance of $ 9,000 before closing. The owner's Capital account will:
a. Decrease $20,000.
b. Increase $29,000.
c. Increase $20,000.
d. Decrease $29,000.
e. Increase $9,000.
5) We prepare closing entries:
a. Before adjusting entries.
b. During the month.
c. on the first day of the new accounting period.
d. After adjusting entries.
e. At the option of the company's accounting department.
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