You are watching: Which of the following correctly describes the closing process?
T/F rental of $4,000 accumulated in advance was tape-recorded as unearned rental revenue. At the end of the accounting period, fifty percent the rent was earned. The related adjusting entry have to be a credit to rental revenue because that $2,000 and a debit come unearned rental revenue for $2,000.
T/F Under accumulation accounting, interest cost would be well-known on the earnings statement as soon as the interest has actually accrued with the passage of time also though cash has actually not been paid.
T/F Accounts the retain your balance native one duration to the next are described as irreversible accounts and include balance paper accounts
On July 1, 2014, Allen company signed a $100,000, one-year, 6 percent keep in mind payable. The principal and interest will be paid on June 30, 2015. Just how much interest expense should be report on the income statement because that the year ended December 31, 2014?$6000$3000$1500$0
Which the the complying with does not correctly define an adjusting newspaper entry that debits rental expense and credits prepaid rent?It boosts expenses and decreases stockholders" equity.It decreases network income and also decreases assets.It increases expenses and decreases existing assets.It decreases net income and also decreases liabilities.
On January 1, 2014, the general ledger of an international Corporation consisted of supplies the $1,000. Throughout 2014, provides purchases price to $5,000. A physical count of list on hand in ~ December 31, 2014 identified that the quantity of provides on hand was $1,200. Exactly how much is the 2014 supplies expense?$6,000.$5,200.$4,800.$1,000.
Which the the following ideal describes the difference between an unadjusted psychological balance and also an changed trial balance?An unadjusted trial balance is all set at the begin of the accounting period and is not listed to external decision makers,while an changed trial balance is ready at the end of the period and is listed to external decision makers.An unadjusted trial balance is all set by providers that do adjusting entries, when an changed trial balance is all set by providers that perform not do adjusting entries.An unadjusted attempt balance is prepared before the adjusting entries have actually been made, if an readjusted trial balance is prepared after the adjusting entries have actually been made.An unadjusted attempt balance is all set after the post-closing attempt balance.
An unadjusted attempt balance is prepared prior to the adjusting entries have actually been made, if an readjusted trial balance is ready after the adjusting entries have been made.
Which of the complying with correctly explains the closing entry process?The closing procedure reduces the balances in the permanent accounts come zero in ~ the finish of every period.The closeup of the door entries space usually prepared before the adjusted trial balance.The closing process creates a zero balance in all momentary accounts at the finish of every period.The closing procedure creates a zero balance in ~ the finish of each duration for all accounts on the year-end psychological balance.
Which the the complying with correctly defines the account reported ~ above the post-closing psychological balance?They include permanent and temporary accounts v non-zero balances.The finishing retained earnings balance consists of the current period net income.They incorporate only short-term account balances.They do not encompass stockholders" same account balances.
Which that the complying with accounts would not be contained in the closing process at year-end?Rent expense.Sales revenue.Additional paid-in capital.Cost of products sold.
T/F The newspaper entry to readjust the unearned revenue account once revenues room earned results in an increase in assets and also a diminish in liabilities.
False The adjusting entrance to acknowledge revenue previously recorded together unearned revenue outcomes in a decrease in liabilities and an increase in stockholders" same (revenue).
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Which of the following statements does not correctly define the relationship between the revenue statement and also the ending retained income balance?Net income increases the finishing balance of kept earnings.A network loss reduce the ending retained earnings balance.A network loss walk not influence the ending retained income balance.Net income and net ns both impact the finishing retained revenue balance.
Horngren"s jae won & Managerial Accounting6th EditionBrenda l Mattison, Ella Mae Matsumura, Tracie Miller-Nobles