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An income statement that has one total for all revenues and one total for all expenses is known as a


A) classified income statement.
B) multiple-step income statement.
C) single-step income statement.
D) categorized income statement.

E) A) and C)
F) A) and B)

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If the Income Summary account has a credit balance after revenues,and expenses are closed,the firm had a net income for the fiscal period.

A) True
B) False

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Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question. Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question. Select the closing entry that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances. A) debit Sales and credit Income Summary for $15,000. B) debit Income Summary for $15,000 and credit Sales for $15,000. C) debit Sales and credit R Holloway,Capital for $15,000. D) debit Sales $15,000;debit Purchase Returns and Allowances $200 and credit Income Summary for $15,200. Select the closing entry that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances.


A) debit Sales and credit Income Summary for $15,000.
B) debit Income Summary for $15,000 and credit Sales for $15,000.
C) debit Sales and credit R Holloway,Capital for $15,000.
D) debit Sales $15,000;debit Purchase Returns and Allowances $200 and credit Income Summary for $15,200.

E) A) and C)
F) C) and D)

Correct Answer

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Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question. Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question. Select the correct closing entry that RB Auto would make to close their expense account(s) at the end of the accounting period. A) debit Salary Expense $4,000;debit Rent Expense $3,000;debit Purchases $2,000 and credit Income Summary $9,000 B) debit Income Summary $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000 C) debit Income Summary $9,000 and credit R.Holloway,Capital for $9,000 D) debit R.Holloway,Capital $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000 Select the correct closing entry that RB Auto would make to close their expense account(s) at the end of the accounting period.


A) debit Salary Expense $4,000;debit Rent Expense $3,000;debit Purchases $2,000 and credit Income Summary $9,000
B) debit Income Summary $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000
C) debit Income Summary $9,000 and credit R.Holloway,Capital for $9,000
D) debit R.Holloway,Capital $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000

E) All of the above
F) B) and C)

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The balance of the Sales Returns and Allowances account is reported as a selling expense in Operating Expenses section of a multiple-step income statement.

A) True
B) False

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The balance of the owner's drawing account is


A) listed in the Other Expenses section of the income statement.
B) listed in the Current Assets section of the balance sheet.
C) used in the calculation of ending capital on a statement of owner's equity.
D) listed in the Operating Expenses section of the income statement.

E) B) and C)
F) All of the above

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The beginning capital balance shown on a statement of owner's equity is $43,000.Net income for the period is $18,000.The owner withdrew $22,000 cash from the business and made no additional investments during the period.The owner's capital balance at the end of the period is


A) $39,000.
B) $47,000.
C) $61,000.
D) $83,000.

E) C) and D)
F) B) and C)

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A total of $8,000 in supplies was purchased during the year.By the end of the year,the company had used up $5,300 of the supplies.The adjusting entry needed at the end of the year is:


A)
A total of $8,000 in supplies was purchased during the year.By the end of the year,the company had used up $5,300 of the supplies.The adjusting entry needed at the end of the year is: A) B) C) D)
B)
A total of $8,000 in supplies was purchased during the year.By the end of the year,the company had used up $5,300 of the supplies.The adjusting entry needed at the end of the year is: A) B) C) D)
C)
A total of $8,000 in supplies was purchased during the year.By the end of the year,the company had used up $5,300 of the supplies.The adjusting entry needed at the end of the year is: A) B) C) D)
D)
A total of $8,000 in supplies was purchased during the year.By the end of the year,the company had used up $5,300 of the supplies.The adjusting entry needed at the end of the year is: A) B) C) D)

E) None of the above
F) All of the above

Correct Answer

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The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account. The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account. A) B) C) D)


A)
The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account. A) B) C) D)
B)
The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account. A) B) C) D)
C)
The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account. A) B) C) D)
D)
The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account. A) B) C) D)

E) A) and B)
F) A) and C)

Correct Answer

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The ____________________ of a building is the portion of the original cost that has not yet been depreciated.

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Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period. A) B) C) D) Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period.


A)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period. A) B) C) D)
B)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period. A) B) C) D)
C)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period. A) B) C) D)
D)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period. A) B) C) D)

E) B) and C)
F) C) and D)

Correct Answer

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Prepaid expenses appear in the


A) Operating Expenses section of the income statement.
B) Other Expenses section of the income statement.
C) Current Assets section of the balance sheet.
D) Current Liabilities section of the balance sheet.

E) B) and C)
F) B) and D)

Correct Answer

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A gross profit percentage of 45 percent means that for every $1 of net sales,gross profit amounts to ___________________.

Correct Answer

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Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period. A) B) C) D) Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period.


A)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period. A) B) C) D)
B)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period. A) B) C) D)
C)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period. A) B) C) D)
D)
Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question. Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period. A) B) C) D)

E) B) and C)
F) A) and B)

Correct Answer

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When a firm experiences a net loss,the owner's capital is decreased.

A) True
B) False

Correct Answer

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After all adjusting entries are posted,the balances of the general ledger accounts should match the amounts shown in the Adjusted Trial Balance section of the worksheet.

A) True
B) False

Correct Answer

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Interest on notes payable would be listed in the Other Income section of a classified income statement.

A) True
B) False

Correct Answer

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Current assets provide the funds needed to pay bills and meet expenses.

A) True
B) False

Correct Answer

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