Dogwood, Inc. earned revenues of $11,000 and incurred expenses of $7,500. The company declared and paid cash dividends of $2,000. What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings account? A) debit balance of $3,500 B) debit balance of $1,500 C) credit balance of […]
Date: September 2nd, 2020
Which of the following entries will be necessary to close the Insurance Expense account at the end of the year? A) debit Insurance Expense and credit Income Summary B) debit Insurance Expense and credit Common Stock C) debit Retained Earnings and credit Insurance Expense D) debit Income Summary and credit Insurance Expense ANSWER D
Date: September 2nd, 2020
Which of the following accounts will have an ending balance after the closing process is completed? A) Dividends B) Rent Expense C) Accumulated Depreciation D) Service Revenue ANSWER C
Date: September 2nd, 2020
The adjusted trial balance shows ________. A) account balances after adjustments B) revenue and expense accounts only C) account balances before adjustments D) balance sheet accounts only ANSWER A
Date: September 2nd, 2020
An adjusted trial balance does not list the revenues and expenses of a business. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Internal auditors are employees of the business who ensure that employees are following company policies and that operations are running efficiently. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The environment is the culture of a business, and it starts with the CEO or CFO and the top managers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts? What will be an ideal response ANSWER The revenues, expenses, and the Dividends accounts are closed. The closing process gets these accounts ready for the next period and updates the Retained Earnings account balance for net […]
Date: September 2nd, 2020
Bryan Consultants had the following balances before preparing adjusting entries in the books on December 31, 2017 Cash $6,000 Dividends $3,000 Accounts Receivable 2,000 Service Revenue 10,600 Office Supplies 1,800 Salaries Expense 4,000 Equipment 15,000 Rent Expense 800 Accumulated Depreciation— 9,000 Depreciation Expense— 1,500 Equipment Equipment Common Stock 15,000 Supplies Expense 500 Prepare the adjusted […]
Date: September 2nd, 2020
External auditors evaluate company controls to ensure the financial statements are presented fairly, in accordance with Generally Accepted Accounting Principles. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
