ADVANCED ACCOUNT CHAPTER 5 QUESTIONS WITH ACCURATE ANSWERS

ADVANCED ACCOUNT CHAPTER 5 QUESTIONS WITH
ACCURATE ANSWERS
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 - CORRECT ANSWER✅✅✅


Which of these accounts would notbe present in the closing entries?
a. Dividends Payable
b. Utilities Expense
c. Fees Earned Revenue

d. Insurance Expense - CORRECT ANSWER✅✅✅


Which of the following accounts is considered a temporary or nominal account?
a. Fees Earned Revenue
b. Prepaid Advertising
c. Unearned Service Revenue

d. Prepaid Insurance - CORRECT ANSWER✅✅✅


Which of these accounts is never closed?
a. Retained Earnings
b. Dividends
c. Service Fee Revenue

d. Income Summary - CORRECT ANSWER✅✅✅


Which account would be credited when closing the account for fees earned for the year?

, a. Income Summary
b. Accounts Receivable
c. Fees Earned Revenue

d. Unearned Fee Revenue - CORRECT ANSWER✅✅✅


Which of these accounts would be present in the closing entries?
a. Dividends
b. Accounts Receivable
c. Unearned Service Revenue

d. Sales Tax Payable - CORRECT ANSWER✅✅✅


Which of these accounts is included in the post-closing trial balance?
a. Accounts Payable
b. Supplies Expense
c. Sales Revenue

d. Insurance Expense - CORRECT ANSWER✅✅✅


If current assets are $112,000 and current liabilities are $56,000, what is the current ratio?
a. 2.0
b. 200 percent
c. 50 percent

d. $50,000 - CORRECT ANSWER✅✅✅


If current assets are $100,000 and current liabilities are $42,000, what is the working capital?
a. $58,000
b. 200 percent
c. 50 percent

d. 2.0 - CORRECT ANSWER✅✅✅