Session:5 Completing the Accounting Cycle
Multiple Choice
Principles of Accounting, Volume 1: Financial Accounting | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-financial-accounting
2. LO 5.1Which of the following accounts is considered a permanent or real account?
- Interest Revenue
- Prepaid Insurance
- Insurance Expense
- Supplies Expense
4. LO 5.1If a journal entry includes a debit or credit to the Retained Earnings account, it is most likely which of the following?
- a closing entry
- an adjusting entry
- an ordinary transaction entry
- outside of the accounting cycle
6. LO 5.1Which of these accounts would not be present in the closing entries?
- Utilities Expense
- Fees Earned Revenue
- Insurance Expense
- Dividends Payable
8. LO 5.1Which of these accounts is never closed?
- Prepaid Rent
- Income Summary
- Rent Revenue
- Rent Expense
10. LO 5.1Which account would be credited when closing the account for rent expense for the year?
- Prepaid Rent
- Rent Expense
- Rent Revenue
- Unearned Rent Revenue
12.
LO 5.2Which of these accounts is not included in the post-closing trial balance?
- Land
- Notes Payable
- Retained Earnings
- Dividends
14. LO 5.2Which of these accounts is included in the post-closing trial balance?
- Supplies Expense
- Accounts Payable
- Sales Revenue
- Insurance Expense
16. LO 5.3If current assets are $100,000 and current liabilities are $42,000, what is the working capital?
- 200 percent
- 50 percent
- 2.0
- $58,000