Question: Which of the following accounts would appear on the post-closing trial balance?

Answer: Accounts Receivable

Question: On the worksheet, after totaling the debit and credit Balance Sheet columns, the difference is __________.

Answer: the amount of Net Income or Net Loss for the period

Question: Which of the following steps of the accounting cycle is done continuously through the accounting cycle (NOT just done at the end of an accounting period)?

Answer: Analyze and journalize transaction as they occur

Question: Which of the following accounts is considered a permanent account?

Answer: Cash is an Asset, and Assets are considered permanent accounts.

Question: On December 31, before the closing entries, the following information is available for Jones Company:

Service Revenue $12,000

Total Expenses $6,000

Dividends $2,000

Retained Earnings $15,000

The balance of Retained Earnings after all closing entries would be:

Answer: The current Retained Earnings of $15,000 would be increased by Service Revenue of $12,000. It would then be decreased by total Expenses of $6,000 and decreased by Dividends of $2,000.

So (15,000 + 12,000 - 6,000 - 2,000) = $19,000 as Retained Earnings balance after closing entries.

Question: The journal entry to close out a $200 debit balance in the Dividends account for the period would be:

Answer: Retained Earnings 200

Dividends 200

Dividends are a distribution of earnings to shareholders and reduce Retained Earnings. Since the Dividends account has a debit balance, you need to credit Dividends and debit Retained Earnings to close the account.

Question: Which of the following accounts would be included in the Plant Asset category of the classified Balance Sheet?

Answer: A Building is classified as a Plant Asset because it provides a benefit of more than one year. Additionally, it is a plant asset as it is used in the operation of the business.

Question: Which of the following accounts would be included in the Current Assets category of the classified Balance Sheet?

Answer: Accounts Receivable is an asset where the amount owed from customers is expected to be collected in less than one year, so it is classified as a Current Asset.

Question: Which of the following accounts appears in one of the Income Statement columns of the worksheet?

Answer: Rent Expense

Question: Which of the following accounts is NOT closed at the end of the accounting period?

Answer: Building