Accounting and Bookkeeping
Which of the following accounts would never appear in the after-closing trial balance? (More than one answer may be correct)
Unearned revenue
Dividends
Accumulated depreciation
Income tax expense
Dividends
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Tick all of the following statements that correctly describe net income. Net income:A. Is equal to revenue minus the sum of expenses and dividends
B. Is equal to revenue minus the sum of expenses and dividends
C. Increases owners’ equity
D. Is reported by a company for a specific period of time
Which of the following journal entries is required to close the income summary account of a profitable company?
A. Debit income summary, credit retained earnings
B. Credit income summary, debit retained earnings
C. Debit income summary, credit capital stock
D. Credit income summary, debit capital stock
Select any correct items for which generally accepted accounting principles require disclosure in notes accompanying the financial statements.
A. A target lawsuit was filed against the company two days after the balance sheet date
B. The depreciation method in use, given that several different methods are acceptable under generally accepted accounting principles
C. Whether small but long-lived items, such as electric pencil sharpeners and handheld calculators, are charged to asset or expense accounts
D. As of year-end, the chief executive officer had been hospitalized due to chest pains
Sunset Tours has a $3,500 account receivable from the Del Mar Rotary. On 20 January, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry made on 20 January by Sunset Tours to record this transaction includes:
A. A debit to the cash received account of $2,100
B. A credit to the accounts receivable account of $2,100
C. A debit to the cash account of $1,400
D. A debit to the accounts receivable account of $1,400
According to the rules of debit and credit for balance sheet accounts:
A. Increases in asset, liability, and owners’ equity accounts are recorded by debits
B. Decreases in asset and liability accounts are recorded by credits
C. Increases in asset and owners’ equity accounts are recorded by debits
D. Decreases in liability and owners’ equity accounts are recorded by debits
Which of the following accounts is not closed to the income summary account at the end of the accounting period? (More than one answer may be correct)
A. Rent expenses
B. Accumulated depreciation
C. Unearned revenue
D. Supply expenses
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