1. What two account types are temporary stockholders' equity accounts?
income & expense summary
revenue and expenses
asset and liabilities
none of the above
2. To close the sales account, we would?
debit sales and credit income & expense summary
credit sales and debit income & expense summary
debit assets and liabilities
debit stockholders' equity
3. To close all expense accounts, we would?
debit income & expense summary and credit each expense
credit income & expense summary and debit each expense
credit income & expense summary and debit stockholders' equity
none of the above
4. In a post-closing trial balance?
assets show zero balances
liabilities and revenue have zero balances
revenue and expense have zero balances
beginning inventory is increased
5. To close out advertising expense?
credit advertising expense and debit income & expense summary
debit advertising expense and credit income & expense summary
debit income & expense summary and credit net profit
credit liabilities and debit income & expense summary
6. To close out rent expense?
debit rent expense & credit income & expense summary
credit rent expense and debit income & expense summary
rent expense should never be closed
debit rent expense and debit cash
7. After posting your closing entries, what is the balance in the furniture fixtures account?
$47,000
$85,000
$95,000
$0.00
8. After the adjusting entries have been posted, what is the value of the ending inventory?
$100,000
$0.00
$50,502.82
$75,000.00
9. What is the cash balance after posting the closing entries?
$60,000
$40,498.00
$196,040.88
$100,000
10. What is the value of the common stock after posting the closing entries?
$130,000
$30,000
$85,000
none of the above
11. The process that starts with journalizing and ends with a post-closing trial balance is called?
accounting cycle
bank reconciliation
trial balance
income statement
12. Owning your own business requires a knowledge of?
accounting
art history
poetry
pottery
13. An accounting certificate is available for you after the completion of this tutorial?
true
false
14. If you want to see the net income for the year, you should close the books each month.
true
false
15. A revenue transaction?
increases stockholders' equity
decreases stockholder's equity
decreases cash
has no effect on any other accounts
Chapter 13 Accounting Test