Question

In: Accounting

Answer the following statements as true or false, then select the correct multiple -choice answer:   1.   If...

Answer the following statements as true or false, then select the correct multiple -choice answer:

  1.   If dividends are declared during the year the company would close the dividend account by debiting retained

         earnings and crediting the dividend account.

  2.   A company that forgets to recognize depreciation for the year understates its income and assets.

  3.   Prepaid insurance expense will have a zero balance on the after closing trial balance.

  4.   Retained earnings on an adjusted trial balance is the beginning retained earnings for the period.

A.    True, False, False, False

B.    False, True, True, False

C.    True, False, False, True

D. True, True, False, False

A partial listing of a company’s accounts are listed below:

      Sales Revenue                               $190,000                Depreciation Expense         $20,000

      COGS                                               84,000                Rent Expense                          8,000

      Cash                                                     1,000                Unearned Revenue                 2,000

      Building                                          200,000                Wage Expense                      30,000

      Accumulated Depreciation                44,000                Interest Expense                     3,000

      Note Payable                                     50,000               Service Revenue                   60,000

      Dividends                                            4,000               Goodwill                                 7,000

    The closing entry to close the Income Summary would include a debit to Income Summary for:

A. $101,000

B. $189,000

C. $105,000

D. $  77,000

Solutions

Expert Solution

The closing entry to close the income summary would include a debit to income summary for

B.$189,000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Which of the following statements is true? Select the correct answer a.NONE OF THE STATEMENTS ARE...
Which of the following statements is true? Select the correct answer a.NONE OF THE STATEMENTS ARE TRUE b.Electric forces depend on velocity of a charged object c.Objects having a net charge experience only electric force, not magnetic force d.It is impossible to separate the North and South poles of a bar magnet e.Electric forces decrease with decreasing distance from charges, but magnetic forces do not decrease with decreasing distance from magnets
Answer the given statements as True or False. If the statement is false, correct it so...
Answer the given statements as True or False. If the statement is false, correct it so it becomes a true statement. 1. The neutral axis can be found at a distance ‘y’ (where y>0) from the centroidal axis of a member. 2. The centre of curvature can be found at a radial distance (rho) from the neutral axis of a member in pure bending. 3. When developing generalized equations for stress transformations, we must consider stresses on only the horizontal...
Indicate whether the following statements are (True) or (False) and correct the False statements:
 Indicate whether the following statements are (True) or (False) and correct the False statements: 1. The corporate treasurer typically handles both cost accounting and financial accounting. 2. Marginal analysis states that financial decisions should be made and actions taken only when added benefits are greater than zero. ( 3. The conflict between the goal of a firm's owners and the goal of its non-owner managers is incompatibility. () 4. The sale of either bonds or stocks to the general public is called private placement....
Are the following statements true or false? If false, correct them. 1.An investor who wishes to...
Are the following statements true or false? If false, correct them. 1.An investor who wishes to sell shares immediately should ask his or her broker to enter a limit order. 2.Then ask price is less than bid price. 3.An issue of additional shares of stock to the public by Microsoft would be called IPO. 4. An ECN (Electronic Communication Network) is a computer link used by security dealers primarily to advertise prices at which they are willing to buy or...
Determine if the following statements are true/false If the statement is false, either correct it or...
Determine if the following statements are true/false If the statement is false, either correct it or briefly explain why it is false. ________ The correlation coefficient indicates the change in y associated with a unit change in x. ________To conduct a valid regression analysis, both x and y must be approximately normally distributed. ________ All data points will fit the regression line exactly if the sample correlation is either +1 or −1. _________ If r > 0, then as x...
The following statements are about variable life insurance. Select the answer choice containing the correct statement....
The following statements are about variable life insurance. Select the answer choice containing the correct statement. The insurance company alone assumes the investment risk for variable life insurance policies. Variable life insurance policies offer policyowners guaranteed investment earnings and minimum cash values. Assets representing policy reserves of variable life insurance policies are placed in investment accounts that are kept separate from the insurance company’s general investment account. The death benefit provided by a variable life insurance policy remains constant throughout...
Which of the following statements is true? Select the correct answer below: The U.S. economy has...
Which of the following statements is true? Select the correct answer below: The U.S. economy has had persistent trade surpluses since the 1970s A large measure of exports as a percentage of GDP indicates large levels of globalization in a country. If exports as a percentage of GDP are low, then a large trade deficit will not have a huge impact on a country's economy. It is better for a country to have large exports as a percentage of GDP.
Select either true or false for the following statements       1. An opportunity cost is...
Select either true or false for the following statements       1. An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available.   (Click to select)FalseTrue 2. A sunk cost will change with a future course of action.   (Click to select)TrueFalse 3. An out-of-pocket cost requires a current and/or future outlay of cash.   (Click to select)FalseTrue 4. Relevant costs are also known as unavoidable costs.   (Click to select)FalseTrue...
Select either true or false for the following statements       1. An opportunity cost is...
Select either true or false for the following statements       1. An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available.   (Click to select)FalseTrue 2. A sunk cost will change with a future course of action.   (Click to select)FalseTrue 3. An out-of-pocket cost requires a current and/or future outlay of cash.   (Click to select)FalseTrue 4. Relevant costs are also known as unavoidable costs.   (Click to select)TrueFalse...
1. Which of the following statements is correct concerning the Cash Budget? Multiple Choice The Cash...
1. Which of the following statements is correct concerning the Cash Budget? Multiple Choice The Cash Budget never includes cash disbursements from selling and administrative expenses, it only includes disbursements from product costs. The Cash Budget must be prepared before any other budgets. The Cash Budget does not contain any depreciation expenses. The ending cash balance is calculated by adding cash collected to the beginning cash balance for the period. 2. Hiss Corporation's activity for the last six months is...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT