1) At the end of the period, the Real Accounts are closed. True False

2) After the closing process, all the temporary accounts have zero balances. True False

3) Financial statements prepared during the accounting year for periods of less than 12 months are called interim financial statements. True False

4) A Post-Closing Trial Balance will include only real or permanent accounts. True False

5) Entries required to clear the balances of the temporary accounts at year-end are called correcting entries or closing entries. True False

6) The Income Summary account in manual account is an Asset Account. True False

7) In manual accounting, after closing the revenue and expense accounts to Income Summary account, a credit balance in the Income Summary account is an indication that the business has a net profit. True False

8) To close the expense accounts, QuickBooks Pro would credit these expense accounts. True False

9) In the closing process, QuickBooks Pro would credit the revenue accounts. True False

10) The Balance Sheet shows the Income and Expense accounts of the business. True False

11) Which of the following accounts will appear in the Balance Sheet?

Rent Revenue

Salaries Expense

Office Supplies Expense

Prepaid Rent

None of the above

12) Which of the following accounts will not appear in the Profit and Loss Statement?

Utilities Expense

Professional Fees

Telephone Expense

Cash

None of the above

13) Which of the following accounts should not be closed at the end of the accounting period?

Interest Expense

Bank Service Charge

Salaries Payable

Wages Expense

None of the above.

14) The Accumulated Depreciation account is not:

A liability account

A contra asset account

An account with a credit balance

A Balance Sheet account

None of the above.

15) Table 1: The general ledger accounts of Black Belter, Inc. shows the following normal balances as of December 31:

Cash = $12,750.00

Interest Expense = 537.00

Service Revenue = 25,000.00

Interest Income = 1,115.00

Accumulated Depreciation = 1,739.00

Accounts Payable = 2,500.00

Salaries Expense = 6,000.00

Accounts Receivable = 2,367.00

Rent Expense = 8,845.00

Equipment = 9,137.50

Telephone Expense = 494.00

Utilities Expense = 523.50

Refer to Table 1, what is the amount of net income or net loss for the period?

$22,465.50 net income

$9,715.50 net income

$$34,731.00 net income

$7,976.50 net loss

None of the above.

16) Refer to Table 1, what is the amount of Owner's Equity?

$22,993.50

. $9,594.00

$25,015.50

$26,115.00

$20,015.50

17) Refer to Table 1, What is the amount of total assets?

$24,254.50

$22,515.50

$32,231.00

$25,015.50

None of the above.

18) Refer to Table 1,what is the amount of total revenue?

$26,115.00

$25,000.00

$16,399.50

$12,750.00

19) Refer to Table 1, what is the amount of total expenses?

$22,515.50

$16,399.50

$ 9,715.50

$ 18,766.50

None of the above.

20) Refer to Table 1, what is the amount of total liabilities?

$ 4,867.00

$ 9,715.50

$ 2,500.00

$8,500.00

$2,367.00