Section 1
Describe and Prepare Closing Entries for a Business
Which of the following accounts is considered a temporary or nominal account?A. Fees Earned RevenueB. Prepaid AdvertisingC. Unearned Service RevenueD. Prepaid Insurance
Which of the following accounts is considered a permanent or real account?A. Interest RevenueB. Prepaid InsuranceC. Insurance ExpenseD. Supplies Expense
If a journal entry includes a debit or credit to the Cash account, it is most likely which of the following?A. a closing entryB. an adjusting entryC. an ordinary transaction entryD. outside of the accounting cycle
If a journal entry includes a debit or credit to the Retained Earnings account, it is most likely which ofthe following?A. a closing entryB. an adjusting entryC. an ordinary transaction entryD. outside of the accounting cycle
Which of these accounts would be present in the closing entries?A. DividendsB. Accounts ReceivableC. Unearned Service RevenueD. Sales Tax Payable
Which of these accounts would not be present in the closing entries?A. Utilities ExpenseB. Fees Earned RevenueC. Insurance ExpenseD. Dividends Payable
Which of these accounts is never closed?A. DividendsB. Retained EarningsC. Service Fee RevenueD. Income Summary
Which of these accounts is never closed?A. Prepaid RentB. Income SummaryC. Rent RevenueD. Rent Expense
Which account would be credited when closing the account for fees earned for the year?A. Accounts ReceivableB. Fees Earned RevenueC. Unearned Fee RevenueD. Income Summary
Which account would be credited when closing the account for rent expense for the year?A. Prepaid RentB. Rent ExpenseC. Rent RevenueD. Unearned Rent Revenue