Question

1. Which of the following accounts would NOT be reported in the income statement as an expense?

Group of answer choices:

A) Dividends expense

B) Depreciation expense

C) Interest expense

D) Income taxes expense

2. Which of the following journal entries would be used to close the Income Summary account of a profitable company?

A) Debit Income summary; Credit Capital stock

B) Credit Income summary; Debit Retained earnings

C) Credit Income summary; Debit Capital stock

D) Debit Income summary; Credit Retained earnings

3. Which of the following accounts would not appear on an after-closing trial balance?

A) Unearned revenue

B) Cash

C) Accumulated depreciation

D) Income taxes expense

4) Omega Corp. reported total revenues of $200,000, total expenses of $155,000 and declared dividends of $5,000 during the current year. Which entry will close revenues?

Group of answer choices

A) Debit Revenue; Credit Retained earnings

B) Debit Income summary; Credit Revenue

C) Debit Revenue; Credit Income summary

D) Debit Expenses; Credit Revenues

5) Omega Corp. reported total revenues of $200,000, total expenses of $155,000 and declared dividends of $5,000 during the current year. Which entry will close expenses?

A) Debit Expenses; Credit Revenues

B) Debit Income summary; Credit Expenses

C) Debit Expenses; Credit Income summary

D) Debit Retained earnings; Credit Expenses

6) Omega Corp. reported total revenues of $200,000, total expenses of $155,000 and declared dividends of $5,000 during the current year. Which entry will close dividends?

A) Debit Dividends; Credit Retained earnings

B) Debit Income summary; Credit Dividends

C) Debit Dividends; Credit Income summary

D) Debit Retained earnings; Credit Dividends

7) Omega Corp. reported total revenues of $200,000, total expenses of $155,000 and declared dividends of $5,000 during the current year. Which entry will close income summary?

A) Debit Income summary; Credit Retained earnings

B) Debit Income summary; Credit Dividends

C) Income summary does not need to be closed

D) Debit Retained earnings; Credit Income summary

Answer 1

Answer 1: A. Dividend Expense

Answer 2: D. Debit Income Summary; Credit Retained Earnings

Answer 3: D. Income Taxes Expense

Answer 4: C. Debit Revenue; Credit Income Summary

Answer 5: B. Debit Income Summary; Credit Expenses

Answer 6: D. Debit Retained Earnings; Credit Dividends

Answer 7: A. Debit Income Summary; Credit Retained Earnings

Explanation to answer 1: Dividend doesn't appear on income statement. As dividends are not expenses. Dividends are paid out of profits to shareholders.

Explanation to answer 3: After closing trial balance income and expenses accounts will not appear. Only balance sheet items appear. Therefore income taxes expense will not appear.

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