Accounting Questions and Graded Answers.
All of the following accounts are temporary except:
Revenues
Expenses
Assets
Income summary - assets
The purpose of the closing process is to:
a. Reset assets, liabilities, and owner's capital accounts unchecked
b. Reset revenues, expense, and withdrawal accounts checked
c. Help summarize a period's revenues and expenses checked
d. Help summarize a periods of assets and liabilities - b/c
An unclassified balance sheet:
Organizes assets into subgroups
Broadly groups assets, liabilities, and equity
Includes subheadings such as "Current assets" and "Long-term liabilities"
Is not permitted according to GAAP - Broadly groups assets, liabilities and equity
Cash 12,000 -
Land 30,000
Long-term-investments 15,000
Merchandise inventory 6,000 -
Notes receivable (due in 30 days) 1,000 -
Notes receivable (due in 5 years) 5,000
Prepaid insurance 1,500 -
, Short-term investments 10,000 -
Supplies 250 -
Total assets $80,750
The company's unclassified balance sheet reported the assets listed in the above table. The total
current assets that would be reported on a classified balance sheet prepared for the company are:
$20,750
$24,750
$30,750
$80,750 - $30,750
cash, merchandise inventory, notes receivable (due in 30 days), prepaid insurance, short term
investments, supplies.
Place the steps in the four-step closing process in the correct order:
Step 1: Close the revenue accounts
Step 2: Close the expense accounts
Step 3: Close the income summary account
Step 4: Close the withdrawals account - other side : )
1.Buildings- Plant assets
2.Short-term investments- Current assets
3.Accounts payable- Current liabilities
4.Trademarks- Intangible assets
5.Wages payable- Current liabilities
6.Land held for future expansion- Long-term investments
7.Franchises- Intangible assets
8.Accounts receivable- Current assets - other side : )
Account TitleDebitCreditCash 19,000
Prepaid insurance 1,200
All of the following accounts are temporary except:
Revenues
Expenses
Assets
Income summary - assets
The purpose of the closing process is to:
a. Reset assets, liabilities, and owner's capital accounts unchecked
b. Reset revenues, expense, and withdrawal accounts checked
c. Help summarize a period's revenues and expenses checked
d. Help summarize a periods of assets and liabilities - b/c
An unclassified balance sheet:
Organizes assets into subgroups
Broadly groups assets, liabilities, and equity
Includes subheadings such as "Current assets" and "Long-term liabilities"
Is not permitted according to GAAP - Broadly groups assets, liabilities and equity
Cash 12,000 -
Land 30,000
Long-term-investments 15,000
Merchandise inventory 6,000 -
Notes receivable (due in 30 days) 1,000 -
Notes receivable (due in 5 years) 5,000
Prepaid insurance 1,500 -
, Short-term investments 10,000 -
Supplies 250 -
Total assets $80,750
The company's unclassified balance sheet reported the assets listed in the above table. The total
current assets that would be reported on a classified balance sheet prepared for the company are:
$20,750
$24,750
$30,750
$80,750 - $30,750
cash, merchandise inventory, notes receivable (due in 30 days), prepaid insurance, short term
investments, supplies.
Place the steps in the four-step closing process in the correct order:
Step 1: Close the revenue accounts
Step 2: Close the expense accounts
Step 3: Close the income summary account
Step 4: Close the withdrawals account - other side : )
1.Buildings- Plant assets
2.Short-term investments- Current assets
3.Accounts payable- Current liabilities
4.Trademarks- Intangible assets
5.Wages payable- Current liabilities
6.Land held for future expansion- Long-term investments
7.Franchises- Intangible assets
8.Accounts receivable- Current assets - other side : )
Account TitleDebitCreditCash 19,000
Prepaid insurance 1,200
