1:The income statement, statement of retained earnings, and balance sheet can be prepared directly from the amounts shown in an adjusted trial balance.

Select one:

a. True

b. False

2:Every adjusting entry involves the recognition of either revenue or expense. Which of the following is also true?

Select one:

a. All the other three options.

b. There also must be a corresponding change in capital stock.

c. There also must be a corresponding change in either assets or liabilities.

d. There also must be a corresponding change in the cash account.

3 :The original cost of a physical asset was $45,000. It was purchased on January 5, 1995. It has an estimated useful life of 10 years and has been depreciated under the straight-line method for 5 years. At the end of the 6th year, after adjusting entries have been recorded and posted, the book value of the physical asset is which of the following?

Select one:

a. $22,500

b. $27,000

c. $18,000

d. $40,500

4:

If the Income Summary account has a debit balance of $45,500 after revenue and expense accounts are closed, the balance of the Income Summary account should be debited to Retained Earnings.

Select one:

a. False

b. True

5:

Dividends of $36,000 were distributed to stockholders during the year. The dividends account is closed at the end of the accounting period through which of the following entries?

Select one:

a. A debit to Dividends and a credit to Retained Earnings

b. A debit to Income Summary and a credit to Dividends

c. A debit to Retained Earnings and a credit to Dividends

d. A debit to Retained Earnings and a credit to Income Summary

e. A debit to Dividends and a credit to Income Summary

6:

Which of the following is not a normal closing entry?

Select one:

a. A debit to Income Summary and a credit to Sales Revenue

b. A debit to Retained Earnings and a credit to Dividends

c. A debit to Interest Revenue and a credit to Income Summary

d. A debit to Income Summary and a credit to Interest Expense

e. A debit to Income Summary and a credit to Salary Expense

7:

The original cost of a physical asset was $45,000. It was purchased on January 5, 2011. It has an estimated useful life of 10 years and has been depreciated under the straight-line method for 5years. At the end of the 6th year, after adjusting entries have been recorded and posted, the book value of the physical asset will be which of the following?

Select one:

a. $22,500

b. $27,000

c. $18,000

d. $40,500

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