HFT 2401 Quiz 3 Questions
with All Correct Answers
An important purpose of closing entries is to set permanent account balances to zero in
order to begin the next period. - Answer-False
The proper sequence for the accounting cycle is - Answer-analyze, journalize, post,
adjust, prepare statements, close
Closing entries are journalized and posted - Answer-after the financial statements are
prepared
In preparing closing entries - Answer-each expense account will be credited
If the total debit column exceeds the total credit column of the income statement
columns on a work sheet, then the company has - Answer-suffered a net loss for the
period
An error has occurred in the closing entry process if - Answer-the balance sheet
accounts have zero balances
The final step in the accounting cycle is to prepare - Answer-a post-closing trial balance
The final step in the accounting cycle is to prepare - Answer-a post-closing trial balance
The followings are part of account lists and their balances on adjusted trial balance.
What are journal entries to close revenue accounts? - Answer-Debit Service Revenue
Credit Income Summary
The followings are part of account lists and their balances on adjusted trial balance.
What is the amount of Net Income? - Answer-65,000
The followings are part of account lists and their balances on adjusted trial balance.
What is the balance of Retained Earnings that should appear on post-closing trial
balance? - Answer-75,000
with All Correct Answers
An important purpose of closing entries is to set permanent account balances to zero in
order to begin the next period. - Answer-False
The proper sequence for the accounting cycle is - Answer-analyze, journalize, post,
adjust, prepare statements, close
Closing entries are journalized and posted - Answer-after the financial statements are
prepared
In preparing closing entries - Answer-each expense account will be credited
If the total debit column exceeds the total credit column of the income statement
columns on a work sheet, then the company has - Answer-suffered a net loss for the
period
An error has occurred in the closing entry process if - Answer-the balance sheet
accounts have zero balances
The final step in the accounting cycle is to prepare - Answer-a post-closing trial balance
The final step in the accounting cycle is to prepare - Answer-a post-closing trial balance
The followings are part of account lists and their balances on adjusted trial balance.
What are journal entries to close revenue accounts? - Answer-Debit Service Revenue
Credit Income Summary
The followings are part of account lists and their balances on adjusted trial balance.
What is the amount of Net Income? - Answer-65,000
The followings are part of account lists and their balances on adjusted trial balance.
What is the balance of Retained Earnings that should appear on post-closing trial
balance? - Answer-75,000
