Which of the following accounts is(are) listed in a post-closing trial balance?

A) Prepaid Rent.

B) Accounts Payable.

C) Salaries Expense.

D) Two of these three accounts would be included in a post-closing trial balance.

Answer: D

Which of the following statements is true regarding the post-closing trial balance?

A) The post-closing trial balance will be distributed to investors and other stakeholders along with the financial statements.

B) The post-closing trial balance is a report prepared before the adjustments and the financial statements to prove that debits equal credits.

C) The post-closing trial balance is an internal report prepared as the last step in the accounting cycle.

D) The post-closing trial balance proves that all entries have been made correctly and accurately during the accounting period.

Answer: C

Occupational fraud:

A) Is the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employer's resources.

B) Occurs in only a few organizations and generally involves minor amounts.

C) Will be prevented when companies employ an auditor.

D) Is committed only by lower-level employees.

Answer: Is the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employer's resources.

A list of all accounts and their balances after posting closing entries is referred to as:

A) A trial balance.

B) An adjusted trial balance.

C) A post-closing trial balance.

D) An accounting trial balance.

Answer: C

A post-closing trial balance:

A) Is a list of all accounts and their balances after adjusting entries.

B) Is a list of all accounts and their balances before adjusting entries.

C) Is a list of all accounts and their balances after closing entries.

D) Is a trial balance adjusted for cash-basis accounting.

Answer: C

Which one of the following accounts would NOT have a balance after closing entries?

A) Deferred Revenue.

B) Supplies.

C) Prepaid Rent.

D) Dividends.

Answer: D

Frosty Inc. has the following balances on December 31 prior to closing entries:

Frosty Inc. has the following balances on December 31 prior to closing entries:

Revenues $ 35,000

Retained Earnings, Jan. 1 10,000

Cash 7,000

Expenses 23,000

Accounts Payable 4,000

Dividends 1,000

Supplies 18,000

Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries?

A) Increase of $11,000.

B) Increase of $13,000.

C) Increase of $12,000.

D) Increase of $14,000.

Answer: A

Which of the following is a possible closing entry?

A) Debit Cash, credit Service Revenue.

B) Debit Cash, credit Retained Earnings.

C) Debit Service Revenue, credit Retained Earnings.

D) Debit Dividends, credit Retained Earnings.

Answer: C

The closing entry for expenses includes:

A) A debit to Dividends and a credit to all expense accounts.

B) A debit to Retained Earnings and a credit to all expense accounts.

C) A debit to Revenues and a credit to Retained Earnings.

D) A debit to Revenues and a credit to all expense accounts.

Answer: B

For the first three years of operations, the company reports net income of $1,000, $2,000, and $3,000, and pays dividends of $500, $1,000, and $1,000

For the first three years of operations, the company reports net income of $1,000, $2,000, and $3,000, and pays dividends of $500, $1,000, and $1,000. What is the balance of retained earnings at the end of the third year?

A) $2,000.

B) $2,500.

C) $3,500.

D) $6,000.

Answer: C

In the first three years of operations, Lindsey Corporation reported net income(loss) of $(150,000), $100,000, and $250,000. At the end of the third year, Lindsey Corporation has a balance of $120,000 in its Retained Earnings account. What is the total amount of dividends Lindsey Corporation paid over the three years?

A) $130,000.

B) $120,000.

C) $80,000.

D) $380,000.

Answer: C

The Retained Earnings account had a beginning credit balance of $26,000. During the period, the business had a net loss $12,000, and the company paid dividends of $8,000. The ending balance in the Retained Earnings account is:

A) $6,000.

B) $30,000.

C) $22,000.

D) $14,000.

Answer: A

The ending Retained Earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year.

The ending Retained Earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year. The company declared a dividend of $1.3 million during the year. What was the amount of net income during the year?

A) $1.9 million.

B) $3.2 million.

C) $4.5 million.

D) $1.3 million.

Answer: C

The ending balance of Retained Earnings can best be described as:

A) The amount of cash received from stockholders over the life of the company.

B) The amount of net income over the life of the company not paid to owners in the form of dividends.

C) The amount of dividends paid over the life of the company.

D) The amount of net income over the life of the company.

Answer: B

When a company prepares closing entries, which one of the following is NOT a correct closing entry?

A) Debit Retained Earnings; credit Salaries Expense.

B) Debit Dividends; credit Retained Earnings.

C) Debit Service Revenue; credit Retained Earnings.

D) All of the other answers are incorrect.

Answer: B

Of the following six accounts, which ones have temporary balances:

(1) Service Revenue

(2) Dividends

(3) Salaries Expense

(4) Common Stock

(5) Retained Earnings

(6) Cash

A) (1), (2), and (3).

B) (4), (5), and (6).

C) (2), (4), and (5).

D) (1), (3), and (5).

Answer: A

Temporary accounts would not include:

A) Salaries Payable.

B) Advertising Expense.

C) Supplies Expense.

D) Dividends.

Answer: A

Which of the following accounts will NOT be involved in closing entries?

A) Prepaid Insurance.

B) Service Revenue.

C) Utilities Expense.

D) Retained Earnings.

Answer: A

The following table contains financial information for Fisher Inc. before closing entries:

The following table contains financial information for Fisher Inc. before closing entries:

Cash $ 23,000

Common Stock 34,000

Supplies 4,000

Advertising Expense 2,000

Accounts Payable 20,000

Service Revenue 30,000

Salaries Expense 3,000

Prepaid Rent 4,000

Dividends 3,000

Equipment 45,000

How many of the above accounts are permanent?

A) Three.

B) Four.

C) Five.

D) Six.

Answer: D

Permanent accounts would not include:

A) Accounts Payable.

B) Office Supplies.

C) Utilities Expense.

D) Common Stock.

Answer: C

Permanent accounts would not include:

A) Interest Expense.

B) Salaries Payable.

C) Prepaid Rent.

D) Deferred Revenues.

Answer: A