1.

Which account is closed at the end of an accounting period?

Select one:

a. Prepaid Expense

b. Sales Discount

c. Unearned Revenue

d. Retained Earnings

2.

At the end of the current year, the Owners' Equity in LaRose Corporation is $188,000. During the year, the assets of the business had decreased by $90,000, and the liabilities had increased by $36,000. Owners' Equity at the beginning of the year must have been:

Select one:

a. $242,000

b. $314,000

c. $494,000

d. $134,000

e. $126,000

3.

Given the following information: Gross Profit is:

Select one:

a. Overstated $2

b. Understated $2

c. Overstated $7

d. Understated $7

e. Overstated $3

4.

Which item will not directly adjust Retained Earnings?

Select one:

a. Correction of Error

b. Change in accounting estimate

c. Change in accounting principle

d. Prior Period Adjustment

5.

The disclosure of income tax effects based on the item causing the tax effect is named:

Select one:

a. Cost Principle

b. Matching Principle

c. Intra-period tax allocation

d. Inter-period tax allocation

e. Full Disclosure Principle

Overstated Understated Sales Discounts Bad Debt Expense Freight-out