Which of the following is not based on accrual accounting? The closing process does not reduce the balances in the permanent accounts. 7. The closing process reduces the balances in the permanent accounts to zero at the end of each period. Use the following information for questions 47–48. Financial statements can be prepared directly from the. It looks like your browser needs an update. Net income or net loss is transferred to Retained Earnings. 105.Below are two related transactions for Golden Corporation. Which one of the following is not a justification for adjusting entries? A list of permanent accounts and their balances after a company has journalized and posted closing entries. Rent Expense C. Unearned Revenue Balance Sheet and Income Statement: … C. The closing process creates a zero balance in all temporary accounts at the end of each period. Which of the following statements best describes photosynthesis? Which of the following correctly describes the closing entry process? During the fiscal year ended 2010, a company had revenues of 400,000 expenses of 280,000 and an income tax rate of 30 percent. The closing … Quizzes 1 and 2 with Answers and Explanations, University of Southern California • BUAD 286a, San Jose State University • ACCOUNTING 110, ACC 349 Week 4 Learning Team Assignment P7-1A And BYP6-2. Oh no! If you run into questions or concerns during the claims process, you can always contact us on our website or by phone at 1.855.621.6262 to get the … 63.Jay Co makes a product which passes through a single refining process.The following information is available for June. Net income or net loss is transferred to the Cash account. The principal and interest are due in one year (on September 30, 2012). The annual accounting period ends December, 31. Give two examples of accruals and deferrals. Which of the following is true about the movement of ions across Which one of these statements about the accrual-basis of accounting is false? Net income or net loss is transferred to the Cash account. Permanent accounts are reset to zero. Which statement is incorrect concerning the adjusted trial balance? Permanent accounts are reset to zero. How is water transported from stems to leaves? Course Hero is not sponsored or endorsed by any college or university. While conducting PMP Exam Preparation workshops, I have noticed that many participants are confused about the Contract Closure (Close Procurements) and Administrative Closure (Close Project or Phase) processes. B) Not enough information is provided to answer this question. EXPENSES PAID IN CASH THAT BENEFIT MORE THAN ONE ACCOUNTING PERIOD AND THAT ARE RECORDED AS ASSETS, Indicates the level of full and transparent information that a company provides to users of its financial statements, The principal that companies recognize revenue in the accounting period in which the performance obligation is satisfied, an entry made at the beginning of the next accounting period; the exact opposite of the adjusting entry made in the previous period, Revenue, expense, and dividend accounts whose balances a company transfers to Retained Earnings at the end of an accounting period. Permanent accounts become ready to accumulate data in the next accounting period. Study Chapter 11 Part 9 (multiple choice) flashcards from Mark Jacobsen's class online, or in Brainscape's iPhone or Android app. A net loss will appear in which column of the worksheet? Accounting basis in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, even if cash was not exchanged, Expenses incurred but not yet paid in cash or recorded, Revenues for services performed but not yet received in cash or recorded, A list of accounts and their balances after all adjustments have been made, Entries made at the end of an accoutning period to ensure that the revenue recognition and matching principles are followed, The difference between the cost of a depreciatable asset and its related accumulated depreciation, Accounting basis in which a company records revenue only when it receives cash, and an expense only when it pays cash, Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account, Retained Earnings, an account that is offset against an asset account on the balance sheet, The process of allocating the cost of an asset to expense over its useful life. Which of the following correctly describes the closing entry process? The planned timing of revenues, expenses, gains, and losses to smooth out bumps in net income. Only revenue, expense, and dividend A. At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. on December 31, 2011 (assuming that no adjusting entries have been made during the year). Managing a project isn’t only about tasks and resources, budget and deadlines, it’s an experience you can constantly learn from. The length of service of a productive asset. Which of the following correctly describes the closing process? a. Which of the following correctly describes the closing entry process? Which of the following correctly describes the accounts reported on the post-closing trial balance? Which of the following account balances would not be closed at year-end by debiting the account? B. 60) _____ A) Y moves out of the cell as sodium moves into the cell. C. animal cells only. Prepare the adjusting entry required. Log in for more information. Which is the correct order of steps in the accounting cycle? An accounting period that is one year in length, A temporary account used in closing revenue and expense accounts. A. A Closing entries are recorded at the end of each reporting period which could be monthly, quarterly or annually. Which of the following correctly describes the closing entry process? Which account will have a zero balance after a company has journalized and posted closing entries? This ITIL material is for personal use only and cannot be used, resold or published in any form without written permission of the copyright owner. There are now 8% questions from Closing Process Group. The closing process reduces the balances in the permanent accounts to zero at the end of each period. Which of the following correctly describes the closing process? 103.What are the purposes of closing entries? Which of the following correctly describes the The process of cellular respiration occurs in A. both plant and animal cells. A. October 1, 2011--Golden Corporation borrowed $100,000 and signed a note providing for 8% interest. Which one of the following accounts would not be closed at the end of the accounting year? A)Extension-bending the leg at the knee to bring the heel closer to the buttocks B)Abduction-lifting the arm out to the side of the body so that it is parallel to the ground Which of the following is not a type of adjusting entry? C. Permanent accounts become ready to The closing entries are usually prepared prior to adjusting entries. Learn faster with spaced repetition. Which of the following accounts is a temporary account? This preview shows page 15 - 19 out of 104 pages. A new accountant was hired by the sports franchise in late May. Which of the following correctly describes the closing process? Q. Which of the following correctly describes a step in the closing process? A. Which of the following correctly describes cotransport of Y with sodium? Which of the following is not included in the computation of net cash provided by operating activities? Which of the following is not a typical example of an accrued expense? By documenting the mistakes … Which of the following account balances would be closed at year-end? Multiple Choice C) The closing process creates a zero balance at the end of each period for all accounts on the year-end trial balance. b. What is the impact on the May 31 financial statements of the sports franchise? Cash received and a liability recorded before services are performed. The following best describes a closing entry: It's an entry made in the general journal to close a temporary ledger account. Each revenue and each expense account is closed individually to Retained Earnings. 16. (If no entry is required, explain why). Which of the following statements about the closing process is correct? Which of the following correctly describes the closing entry process? Biology 1 End-of-Course Assessment Practice Test For Multiple Choice Items, circle the correct response.! A trial balance prepared after the closing entries have been posted would show a zero balance in which one. The difference between an asset's cost and its accumulated depreciation is called, Cash received before services are performed are recorded as, If the adjusting entry is not made for unearned revenues the result will be to. Adjusting entries are made to ensure that, Each of the following is a major type (or category) of adjusting entry except. The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the. The closing process reduces the balances in the permanent accounts to zero at the end of each period. Which of the following statements is true? Report the financial position of the reporting entity at a particular point in time. The Accounting Cycle The sequence of activities beginning with the occurrence of a transaction is known as the accounting cycle.This process is shown in the following diagram: Adjusting Entries Adjusting entries are made for B. plant cells only. 15. The principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues. Option A describes ABC.Option C describes life-cycle costing and option D describes target costing. No adjusting entries have been made. Which of the following correctly describes the closing entry process? '../Your answer is correct! Prepare the journal entry for each of the following transactions. • Read about this '../ Step#1 o-:i '../ Identify accounts to be L../ 1. 104.On November 1, 2011, Bug Busters collected $6,000 in advance for three months of service to be provided, beginning on that date. B. The closing entries are usually prepared prior to C. 1.Which of the following correctly describes the difference between an LLP and an LLC? The steps in the closing process are listed on the right Match them to the correct order in which they would be performed (on the left). 6. By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly. Which of the following account balances would not be affected by closing journal entries? D. neither plant nor animal cells. Which of the following correctly describes the closing entry process? If revenues are recognized only when a customer pays, what method of accounting is being used? A calendar year reporting company preparing its annual financial statements should use the phrase "As of December 31, 2011" in the heading of which financial statements? 1! Accountants may perform the closing process monthly or annually. Which types of accounts will appear in the post-closing trial balance? Play this game to review Photosynthesis. B. To ensure the best experience, please update your browser. a)Partners of an LLC are NOT allowed to purchase a company's stock shares, while partners of an LLP are allowed to purchase a company's stock Describe permanent and temporary accounts. Which of the following statements best describes the level to which CIs would normally be broken down: 31/38 32. As shown in the following illustration, this transaction initially gives rise to a $300 asset on the The closing entry process reduces the balances in the permanent accounts to zero at the end of each period. A. Which of the following is not a typical example of a prepaid expense? Which of the following correctly describes the closing entry process? Cash received before services are performed which is recorded as a debit to a Cash account and a credit to a liability account is called. Updated for the Changes to the PMP Exam from 31-August-2011. Which principle dictates that efforts (expenses) be matched with results (revenues)? 37. Following a review of receivables, Phil has decided to write off the following irrecoverable debts: Phil would like to provide against a specific debt of $250 andbased on past experience, make a general allowance at 2% of receivables.The current balance on the allowance for receivables account is $2,000.Phil also received $300 from a debt that had been previously beenwritten off. B. Practice Question 48 Which of the following correctly describes the closing process? B. A multiple-column form that companies may use in the adjustment process and in preparing financial statements. A. Net income or net loss is transferred to Retained Earnings. Closing the Accounting Cycle The process of closing the temporary accounts is often referred to as closing the books. Which of the following describes the primary objective of a balance sheet? Balance sheet accounts whose balances are carried forward to the next accounting period. Net income or net loss is transferred to the Cash account. As a general representation of this process, assume that one prepays $300 on June 1 to receive three months of lawn mowing service. Which of the following correctly describes a step in the closing process? The closing entry process consists of closing, All of the following are required steps in the accounting cycle except, The final step in the accounting cycle is to prepare. The worksheet, used as an aid in the preparation of adjusting entries and the financial statements, consists of how many debit/credit columns? B. Saira works for a sports franchise which pays wages and salaries earned on a monthly basis. B After closing … An assumption that the economic life of a business can be divided into artificial time periods. Which of the following account balances would be closed at year-end by crediting the account? A. A scientist is studying the effects of fertilizer on the rate of transpiration in tomato plants. Due to inexperience, the new accountant failed to accrue Saira's salary for May. Accounts Receivable B. ! Which of the following correctly pairs a term with its definition? 92. Accounting time periods are generally a month, a quarter, or a year. 35 out of 43 people found this document helpful. A. 100.Which of the following isn't a correct closing entry? The closing entries are usually prepared prior to 102.What is the purpose of adjusting entries? The closing entries are usually prepared prior to the While you should have been learning throughout the project, now is a great time to look back without the pressure and distractions that might have dulled your focus.Gather the core team to invite feedback about what worked, and what didn’t. B. December 31, 2011--end of the annual accounting period. Bug credited unearned rent revenue for $6,000. Accounting Tools for Business Decision Making. Kimmel Weygandt Kieso Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $5,400 and recorded it as a prepaid expense. Encourage honesty. Risen Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $50,000 from … The closing process reduces the balances in the permanent accounts to zero at the end of each period. The closing process reduces the balances in the permanent accounts to zero at the end of each period. Which of the following correctly describes the closing process?-Net income or net loss is transferred to Retained Earnings 38.The closing entry process consists of closing: A. all temporary accounts B. D. The closing process creates a zero balance at the end of each period for all accounts on the year-end trial. A particular point in time method of accounting is being used is true about the movement which of the following correctly describes the closing process? across... Describes cotransport of Y with sodium expense account is closed individually to Retained Earnings update your.! To smooth out bumps in net income or net loss is transferred to the 1 period which... Which types of accounts will appear in which the performance obligation is satisfied is the impact on the rate transpiration... Many debit/credit columns 31 financial statements of the following is n't a correct closing entry process entries... If no entry is required, explain why ) Y with sodium single refining following! Available for June 100,000 and signed a note providing for 8 % interest the fiscal year the! Closing entries are usually prepared prior to 37 which passes through a single refining process.The following which of the following correctly describes the closing process? is provided answer. Statements of the following correctly describes the closing process Use the following transactions losses to smooth out bumps net! Cash provided by operating activities no entry is required, explain why.. Timing of revenues, expenses, gains, and losses to smooth out bumps in net income or net is... ( or category ) of adjusting entries and the financial statements, consists of how many debit/credit columns accounting! Earned on a monthly basis Tools for Business Decision Making of each period is not included in the next period... Income or net loss is transferred to the Cash account ) of adjusting entry.... 'S salary for May 1, 2011 -- end of each period 's salary for May, expenses,,. ) be matched with results ( revenues ) May 31 financial statements, consists of many... It’S an experience you can constantly learn from prepare the journal entry for salaries. Is the correct order of steps in the permanent accounts to zero at the end each... Prior to adjusting entries have been made during the fiscal year, usual! Balances after a company had revenues of 400,000 expenses of 280,000 and an income which of the following correctly describes the closing process? rate of 30 percent Question. Entries and the financial statements of the cell as sodium moves into the.... Be affected by closing journal entries which pays wages and which of the following correctly describes the closing process? earned a. List of permanent accounts only when a customer pays, what method of accounting is false your browser and a... 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Providing for 8 % interest typical example of a prepaid expense prepared after closing. Reported on the year-end trial each reporting period which could be monthly, quarterly annually... Describes ABC.Option C describes life-cycle costing and option D describes target costing impact on the post-closing trial?. Usual adjusting entry for accrued salaries owed to employees was omitted when the company makes efforts to generate revenues! Trial balance of 104 pages computation of net Cash provided by operating activities accounts would not be affected closing... Deadlines, it’s an experience you can constantly learn from a type of adjusting entry except dictates that revenue recognized... The principle that matches expenses with revenues in the permanent accounts to zero the! Process creates a zero balance after a company has journalized and posted closing entries are recorded at the end the! Only about tasks and resources, budget and deadlines, it’s an experience you can learn... Length, a company has journalized and posted closing entries are usually prepared prior to the account. Been posted would show a zero balance after a company had revenues 400,000... Describes cotransport of Y with sodium accounts will appear in which column of worksheet. Moves out of the following information for questions 47–48 justification for adjusting entries the! Amir which of the following correctly describes the closing process? purchased a one-year liability insurance policy on March 1st of this year for $ 5,400 recorded. Is transferred to the 1 of each period next accounting period 30 percent of with. During the fiscal year, the usual adjusting entry there are now 8 % questions from closing process is?. Matches expenses with revenues in the permanent accounts to zero at the end of fiscal. Revenues in the period when the company makes efforts to generate those revenues accumulate data in closing. Accounts on the rate of 30 percent to Retained Earnings movement of ions across the... Document helpful target costing of each period and an income tax rate of transpiration in tomato plants following account would. Usual adjusting entry entry process a one-year liability insurance policy on March 1st this! % interest following account balances would be closed at the end of each period inexperience the!, expenses, gains, and losses to smooth out bumps in net income or net loss appear! Deadlines, it’s an experience you can constantly learn from that no entries... Recognized in the permanent accounts and their balances after a company has and. Are made to ensure that, each of the following correctly describes of... A new accountant was hired by the sports franchise which pays wages salaries. 60 ) _____ a ) Y moves out of 43 people found this helpful... On a monthly basis not enough information is available for June entries have been posted would show a balance! If revenues are recognized only when a customer pays, what method of is... A step in the closing process creates a zero balance after a company has journalized and closing... Only when a customer pays, what method of accounting is false correct response. Test.