Question

35) After all closing entries are made and posted, the balance in the owners' capital account in the ledger will be equal to *

A he beginning balance in owners' capital in the statement of changes in equity

B Zero

C The balance of owners' capital on the post-closing trial balance

D The balance of owners' capital on the pre-closing trial balance

E Profit or loss for the year

34) Which of the following statements is incorrect?

A Permanent accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence.

B The Income Summary account is a temporary account.

C Permanent accounts are another name for temporary accounts.

D Temporary accounts carry a zero balance at the beginning of each accounting period.

E Permanent accounts include assets.

33)The Income Summary account is

A Not a permanent account

B The account from which the amount of profit or loss is transferred to the owners' capital accounts in a partnership

C A temporary account

D All of these

32) Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are

A Permanent accounts

B Financial accounts

C Temporary accounts

D Closing accounts

E Summary accounts

31) Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance?

A Entering a revenue amount in the Balance Sheet Debit column.

B Entering an asset amount in the Income Statement Debit column.

C Entering an expense amount in the Balance Sheet Debit column.

D Entering a liability amount in the Balance Sheet Credit column.

E Entering a liability amount in the Income Statement Credit column.

Answer 1

Question No. 31: A - Entering a revenue amount in the Balance Sheet Debit column.

Revenue Amount is a Credit Item in Nature, Reporting it on Debit side of Balance Sheet increase the total on Debit side when compared to Credit Side

Question No. 32: C - Temporary accounts

temporary accounts are the  accounts that are used to describe revenues, expenses, and owner's withdrawals for one accounting period; they are closed at the end of the reporting period

Question No. 33: D - All of the Above

Question No. 34: C - Permanent accounts are another name for temporary accounts.

Permanent Accounts refers to Accounts of Assets, Liabilities and other items of Balance Sheet, whereas Temporary Accounts refers to Accounts of Revenues and Expenditures

Question No. 35: C - The balance of owners' capital on the post-closing trial balance