Suppose that you complete all closing entries and

12. Suppose that you complete ALL closing entries, and track them in the associated T-accounts that
are impacted by the closing process. Afterward, you find the new balance in all of the T-accounts.
Which of the following is true?
a. Some revenue accounts will have a non-zero credit balance
b. Some revenue accounts will have a non-zero debit balance
c. There will be a non-zero balance in an account called Net Income.
d. The balance in the T-account for Retained Earnings will match the ending Retained
Earnings balance on the Statement of Shareholders’ Equity.
13. What type of account is Unearned Revenue and on what financial statement does it appear? 14. Which of the following statement about the Accumulated Depreciation account is true? 15. The adjusting entry for unearned revenue has the following impact on the financial statements:
16. The adjusting entry for accrued expenses has the following impact on the financial statements:
a. Assets ↑, Expenses ↑
b. Assets ↓, Expenses ↑
c. Liabilities ↑, Expenses ↑
d. Liabilities ↓, Expenses ↑
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Practice Midterm – ACC 101 – Winter 2020 – Stern
17. If the adjusting entry for accrued revenues is not recorded, then: