Part 1

1. Which type of journal entries are made at the end of each accounting period so that the financial statements better reflect the accrual method of

accounting?

A. Adjusting C. Closing

B. Reversing D. Drawing

2. Which financial statement's structure is closest to that of the basic ac- counting equation?

A. Statement of Comprehensive income

B. Statement of Financial position

C. Statement of Cash flows

D. Statement of Equity

3._________entries are entries that close the balances of the nominal accounts like drawing, revenue, and expense accounts to zero to prepare

them for the next accounting period.

A. Adjusting C. Closing

B. Reversing D. Drawing

4. Which of the following is NOT an activity for cash flow?

A. Financing C. Operating

B. Investing D. Nonoperating

5. Assets and liabilities should maintain their balances from the updated trial balance. All nominal accounts balance should not be equal to zero.

A. Sentence 1 and 2 is true

B. Sentence 1 is true but sentence 2 is false

C. Sentence 1 and 2 is false

D. Sentence 1 is false but sentence 2 is true

6. This statement provides the amount for assets, liabilities, and equity

A. Statement of Comprehensive income

B. Statement of Financial position

C. Statement of Cash flows

D. Statement of Equity

7. Which of the following is an asset account?

A. Accounts Payable C. Prepaid Insurance

B. Service Revenue D. Unearned Revenue

8. Which of the following is not nominal account?

A. Accounts Payable C. Prepaid Insurance

B. Service Revenue D. Unearned Revenue

9. What is the normal balance of owner's equity?

A. Debit

B. Credit

C. Neither a or b

D. Both a and b

10. Which of the following is a real account?

A. Property- Land C. Salaries Expense

B. Utilities Expense D. Owner's Drawing

Part 2

1.Which of the following is a real account?

A. Property-land C. Salaries Expense

B. Utilities Expense D. Owner's Drawing

2. Which type of journal entries are made at the end of each accounting period so that the financial statements better reflect the accrual method of accounting?

A. Adjusting C. Closing

B. Reversing D. Drawing

3. Which of the following is not nominal account?

A. Accounts Payable C. Prepaid Insurance

B Service Revenue D. Unearned Revenue

4.__________entries are entries that close the balances of the nominalac counts like drawing, revenue, and expense accounts to zero to prepare

them for the next accounting period.

A. Adjusting C. Closing

B. Reversing D. Drawing

5. What is the normal balance of owner's equity?

A. Debit

B. Credit

C. Neither a or d

D. Both a and b

6. Which financial statement's structure is closest to that of the basic accounting equation?

A. Statement of Comprehensive income

B. Statement of Financial position

C. Statement of Cash flows

D. Statement of Equity

7. Which of the following is an asset account?

A. Accounts Payable C. Prepaid Insurance

B. Service Revenue D. Unearned Revenue

8. Which of the following is NOT an activity for cash flow?

A. Financing C. Operating

B. Investing D. Nonoperating

9. This statement provides the amount for assets, liabilities, and equity

A. Statement of Comprehensive income

B. Statement of Financial position

C. Statement of Cash flows

D. Statement of Equity

10. Assets and liabilities should maintain their balances from the updated tris balance. All nominal accounts balance should not be equal to zero.

A. Sentence 1 and 2 is true

B. Sentence 1 is true but sentence 2 is false

C. Sentence 1 and 2 is false

D. Sentence 1 is false but sentence 2 is true