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Unformatted text preview: 1. When closing entries are made: A) All ledger accounts are closed to start the new accounting period. B) All temporary accounts are closed but not the permanent accounts. C) All real accounts are closed but not the nominal accounts. D) All permanent accounts are closed but not the nominal accounts. E) All balance sheet accounts are closed. 2. The usual order for the asset section of a classified balance sheet is: A) Current assets, prepaid expenses, long-term investments, intangible assets. B) Long-term investments, current assets, plant assets, intangible assets. C) Current assets, long-term investments, plant assets, intangible assets. D) Intangible assets, current assets, long-term investments, plant assets. E) Plant assets, intangible assets, long-term investments, current assets. 3. The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the: A) Income Summary account. B) Closing account. C) Balance column account. D) Contra account. E) Nominal account. Page 1 4. The Income Summary account is used: A) To adjust and update asset and liability accounts. B) To close the revenue and expense accounts. C) To determine the appropriate withdrawal amount. D) To replace the income statement under certain circumstances. E) To replace the capital account in some businesses. 5. Merchandise inventory: A) Is a long-term asset. B) Is a current asset. C) Includes supplies. D) Is classified with investments on the balance sheet. E) Must be sold within one month....
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This note was uploaded on 03/02/2012 for the course ACCT 201 taught by Professor Tracyedmond during the Spring '10 term at Park.
- Spring '10