accounting 5 and 6

4 December 2022
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45 test answers

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question
Which of the following is not an adjusting entry?
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The cash payment on a note from the bank.
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Which of the following accounts is a permanent account?
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Cash
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Which of the following accounts is a temporary account?
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Revenue
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Which of the following is an adjusting entry?
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Depreciation on automobiles is $1,000 for the year
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Which of the following accounts is a closing entry?
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Revenues are closed to allow an accurate account of annual revenue.
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What is the correct way to close expenses?
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Debit Income Summary and credit expenses.
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What is the correct way to close withdrawals?
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Debit Capital and credit withdrawals
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The entry to close Income Summary
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depends on the total amount of revenues and total amount of expenses.
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A post-closing trial balance
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only reflects the balance sheet accounts.
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Which of the following is not true?
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Assets, liabilities, and capital are temporary accounts.
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A check is a written order to pay a specific amount to the
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payee
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Internal control over a company's assets should include the following procedures:
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All of these answers are correct
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Endorsing a check:
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transfers the right to deposit or provide cash.
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The check is written and signed by the:
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drawer.
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If the written amount on the check does NOT match the amount expressed in figures, the bank may:
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All of the above are correct choices
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Emails that pretend to be from the bank and attempt to obtain information is a type of fraud called
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phishing
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Signature card
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Form signed by bank customer to verify signature authenticity
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Deposit slip
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Form used to deposit money or checks into checking account
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Debit card
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Electronic tool to use funds deposited in checking account
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Credit card
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Tool to borrow money from an institution up to a certain dollar limit for purchases
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Check
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Form used to indicate specific amount to be paid by the bank to named entity
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Drawer
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Person who writes a check
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Drawee
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Bank that check is drawn on
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Payee
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Entity to whom a check is payable
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Cancelled check
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Check processed by a bank and no longer negotiable
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Phishing
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Fake emails to gather information about online banking customers
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Skimming
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Theft of credit card information from a transaction
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Endorsement
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Signature by the person to whom the check is made out, required to cash check
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Adjusting Journal Entries
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D) must be journalized and posted.
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Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent) at the end of the period are:
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B) adjusting entries
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The adjusting entry to record depreciation for the company automobile would be:
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C) debit Depreciation Expense, Automobile; credit Accumulated Depreciation, Automobile.
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The adjusting entry to record the expired rent would be to:
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D) debit Rent Expense; credit Prepaid Rent.
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The adjusting entry for accrued salaries is to:
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A) debit Salaries Expense; credit Salaries Payable.
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Each adjustment affects:
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D) Both A and B are correct. the income statement. the balance sheet.
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Mark's Tree Service depreciation for the month is $500. The adjusting journal entry is:
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D) Office Supplies Expense 500 Office Supplies 500
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The income statement debit column of the worksheet showed the following expenses: Supplies Expense $600 Depreciation Expense 400 Salaries Expense 300
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Income Summary 1,300 Supplies Expense 600 Depreciation Expense 400 Salaries Expense 300
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Closing entries are prepared:
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All of the above are correct.
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Income Summary:
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is a temporary account and summarizes revenues and expenses and transfers the balance to Capital.
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An account in which the balance is carried over from one accounting period to the next is called a:
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permanent account.
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Closing entries:
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must be journalized and posted.
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. Closing entries will affect:
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Owner's Capital.
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Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
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All of the above are correct
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The correct order for closing accounts is:
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revenue, expenses, income summary, withdrawals.
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M. Smuts showed a net income of $5,000. The entry to close the Income Summary account would include a:
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credit to M. Smuts Capital, $5,000. debit to Income Summary, $5,000.
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The Income Summary account shows debits of $29,000 and credits of $20,000. This results in a:
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net loss of $9,000.