b. credit side of the Income Statement columns and the debit side ofthe Balance Sheet columns.c. debit side of both the income Statement and the Balance Sheetcolumns.d. credit side of both the income Statement and the Balance Sheetcolumns.9. An important purpose of closing entries is toa. adjust the accounts in the ledgerb. set nominal account balances to zero at the start of the nextperiod.c. set real account balances to zero at the start of the next period.d. help in preparing financial statements.10.Which of the following sequences of documents or records describesthe proper sequence in the accounting cycle?a. Source documents, ledger, journal, financial statementsb. Journal, source documents, ledger, financial statementsC. Source documents, journal, ledger, financial statementsd. Ledger, source documents, journal, financial statements11. Closing entries willa. increase the Owner's Capital balance.b. decrease the Owner's Capital balance.C. not affect the Owner's Capital balance.d. either increase or decrease the Owner's Capital balance.12.Which of the following accounting cycle steps comes before theothers?The financial statements are prepared.b. Closing entries are recorded and posted.c. Source documents are analyzed.d. Adjusting entries are recorded and posted.13. Closing entries ultimately will affecttotal liabilitiesb. the Cash accountC. total assets.d. the Owner's Capital account.If no adjustments are needed for a particular entity, itsa. post-closing trial balance will be identical to its trial balance.b. adjusted trial balance will be identical to its post-closing trial14.balance.c. trial balance will be identical to its adjusted trial balance.d. trial balance, adjusted trial balance, and post-closing trialbalance will be identical15. Which of the following accounts is not closed during the closingprocess?a. Income Summaryb. Owner's Capitalc. Commissions Revenuesd. Owner's Withdrawals16. Which of the following could not possibly be a closing entry?a. Debit Income Summary and credit Owner's Capitalb. Debit Owner's Capital and credit Owner's WithdrawalsC. Debit Income Summary and credit Owner's Withdrawalsd. Debit Owner's Capital and credit Income Summary

“Since you have posted multiple questions, we will be answering only the first question. In order to…

9. An important purpose of closing entries is to a. adjust the accounts in the ledger b. set nominal account balances to zero at the start of the next period. c. set real account balances to zero at the start of the next period. d. help in preparing financial statements.

9. An important purpose of closing entries is to a. adjust the accounts in the ledger b. set nominal account balances to zero at the start of the next period. c. set real account balances to zero at the start of the next period. d. help in preparing financial statements.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 4AP

See similar textbooks

Similar questions

Assume that the first two closing entries have been made and posted. Use the T-accounts provided as follows to: A. complete the closing entries B. determine the ending balance in the Retained Earnings account
Which of these is the first step in the closing process? (a) Close revenue account(s). (b) Close expense accounts. (c) Close the Income Summary account. (d) Close the drawing account.
If a journal entry includes a debit or credit to the Retained Earnings account, it is most likely which of the following? A. a closing entry B. an adjusting entry C. an ordinary transaction entry D. outside of the accounting cycle
Assume that the first two closing entries have been made and posted. Use the T-accounts provided below to: A. complete the closing entries B. determine the ending balance in the Retained Earnings account
For the following accounts please indicate whether the normal balance is a debit or a credit. A. Sales B. Dividends C. Office Supplies D. Retained Earnings E. Accounts Receivable F. Prepaid Rent G. Prepaid Insurance H. Wages Payable I. Building J. Wages Expense
Which of these accounts would be present in the closing entries? A. Dividends B. Accounts Receivable C. Unearned Service Revenue D. Sales Tax Payable
Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Recognition Historical cost Current value Cash basis Accrual basis Revenues Revenue recognition principle Matching principle Expenses Adjusting entries Straight-line method Contra account Deferral Deferred expense Deferred revenue Accrual Accrued liability Accrued asset Accounting cycle Work sheet Real accounts Nominal accounts Closing entries Interim statements A device used at the end of the period to gather the information needed to prepare financial statements without actually recording and posting adjusting entries. Inflows of assets or settlements of liabilities from delivering or producing goods, rendering services, or conducting other activities. Journal entries made at the end of a period by a company using the accrual basis of accounting. Journal entries made at the end of the period to return the balance in all nominal accounts to zero and transfer the net income or loss and the dividends to Retained Earnings. A liability resulting from the receipt of cash before the recognition of revenue. The name given to balance sheet accounts because they are permanent and are not closed at the end of the period. An asset resulting from the recognition of a revenue before the receipt of cash. The amount of cash or its equivalent that could be received by selling an asset currently. The assignment of an equal amount of depreciation to each period. Cash has been paid or received but expense or revenue has not yet been recognized. A system of accounting in which revenues are recognized when a performance obligation is satisfied and expenses are recognized when incurred. Cash has not yet been paid or received but expense has been incurred or revenue recognized. Financial statements prepared monthly, quarterly, or at other intervals less than a year in duration. Revenues are recognized in the income statement when a performance obligation is satisfied. The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like. An asset resulting from the payment of cash before the incurrence of expense. The name given to revenue, expense, and dividend accounts because they are temporary and are closed at the end of the period. A system of accounting in which revenues are recognized when cash is received and expenses are recognized when cash is paid. A liability resulting from the recognition of an expense before the payment of cash. The association of revenue of a period with all of the costs necessary to generate that revenue. An account with a balance that is opposite that of a related account. The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets. Outflows of assets or incurrences of liabilities resulting from delivering goods, rendering services, or carrying out other activities. A series of steps performed each period and culminating with the preparation of a set of financial statements.
A trial balance: lists only revenue and expense accounts; lists all accounts and their balances. will help detect omitted journal entries. detects all errors that could be made during the journalizing or posting steps of the accounting cycle.
An account is said to have a debit balance if ? Select one: a. The amount of debit exceeds the amount of the credits b. There are more entries on the debit side than on the credit side c. None of above d. The last entry of the accounting period was posted on the debit side
An account is said to have a debit balance if ? Please full explain the explanation. a. the amount of the debits exceeds the amount of the credits b. there are more entries on the debit side than on the credit side c. there are more entries on the credit side than on the debit side d. the first entry of the accounting period was posted on the debit side
Which of the following statements is correct about closing entries?a. Must debit or credit one income statement account and one statement of financialposition accountb. Include closing the dividends account to income summaryc. All of these choices are correctd. Are posted to the appropriate general ledger accounts
Choose from the following list of terms/phrases to best complete the statements below. a. Temporary c. One or more e. Zero balances b. Permanent d. One f. Income Summary 1. accounts generally consist of all balance sheet accounts, and these accounts are not closed. 2. Permanent accounts report on activities related to future accounting periods, and they carry their ending balances into the next period. 3. Temporary accounts accumulate data related to accounting period. 4. accounts include all income statement accounts, the withdrawals account, and the Income Summary account.