Question

Closing entries are dated in the journal as of:

  

a.    the date they are actually journalized, although they are generally prepared after the end of the accounting period        

b.    the last day of the accounting period, although they are actually journalized after the end of the accounting period        

c.    the first day of the accounting period, although they are actually journalized after the end of the accounting period        

d.    the first day of the subsequent accounting period      

  

  

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

  

a.    Supplies Expense        

b.    Accumulated Depreciation        

c.    Prepaid Insurance        

d.    Unearned Rent      

  

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

  

a.    Salaries Expense        

b.    Fees Earned        

c.    Unearned Rent        

d.    Depreciation Expense      

  

  

A fiscal year:

a.    ordinarily begins on the first day of a month and ends on the last day of the following twelfth month        

b.    for a business is determined by the federal government        

c.    always begins on January 1 and ends on December 31 of the same year        

d.    should end at the height of the business's annual operating cycle      

Answer 1

• Question 1

Closing entries are dated in the journal as of:

Correct Answer: Option ‘b’ the last day of the accounting period, although they are actually journalized after the end of the accounting period.

The accounts are closed off after the accounting period, but entries are dated as on the last day of accounting period.   

• Question 2

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

Correct Answer = Option ‘A’ Supplies expense

This is because Only revenues and Expenses accounts are closed to Income Summary and Supplies expense is an expense account. Rest are Assets or Liability accounts.

• Question 3

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

Correct Answer = Option ‘C’ Unearned rent

This is because Only revenues and Expenses accounts are closed to Income Summary, while Unearned Rent is a Current Liability account and a balance sheet item of permanent nature.

• Question 4

A fiscal year:

Correct Answer = Option ‘a’. ordinarily begins on the first day of a month and ends on the last day of the following twelfth month .

Example of fiscal year can be a year from 1^st July 2018 to 30^th June 2019