AAMI BUS 411: Accounting II Solved
100%
Income Summary Account gets closed to: -Correct Answer-Capital.
What account would you NOT find in a post closing trial balance? -Correct Answer-Postage Costs.
The Capital Account gets closed to: -Correct Answer-It doesn't get closed.
When closing Revenue to Income Summary, you do what to the Revenue Account? -Correct Answer-
Debit Revenue.
Is Accounts Receivable a permanent or temporary account? -Correct Answer-Permanent.
Is "Accounts Payable" a permanent or temporary account? -Correct Answer-Temporary.
Which account gets closed first at the end of the accounting cycle? -Correct Answer-Revenue.
Is "Office Equipment" a permanent or temporary account? -Correct Answer-Permanent.
Income Summary appears under which category in "Chart of Accounts?" -Correct Answer-Owner's
Equity.
Is "Gasoline Expense" a permanent or temporary account? -Correct Answer-Temporary.
T/F: Purchase returns and allowances increase the cost of merchandise purchased. -Correct Answer-
False.
Purchases of merchandise for resale are debited to a cost account called: -Correct Answer-Merchandise
purchases.
, T/F: When the seller collects sales tax, this is considered an asset. -Correct Answer-False.
T/F: When the supplier has prepaid freight costs, the freight charges appear as an Account Payable on
the buyer's books. -Correct Answer-True.
T/F: The sales journal contains information on all sales a business makes. -Correct Answer-False.
T/F: When posting from the sales or purchase journal the first step is cross footing. -Correct Answer-
False.
T/F: Merchandise Purchases for resale are expenses. -Correct Answer-True.
The left side of every account is the _____ side. -Correct Answer-Debit.
T/F: When making a purchase by cash, that purchase is entered into the purchase journal. -Correct
Answer-False.
The reduction in price of merchandise due to its being unsatisfactory or damaged is called a: -Correct
Answer-Sales allowance.
Sales returns and allowances have a(n)________effect on Owner's Equity. -Correct Answer-Negative.
The Purchase Journal contains entries for Sales Tax Payable. -Correct Answer-False.
A special journal is one that is: -Correct Answer-Used for one type of transaction only.
T/F: Freight In is a liability. -Correct Answer-False; Expense.
T/F: The Sales Journal is for Accounts Payable. -Correct Answer-False.
100%
Income Summary Account gets closed to: -Correct Answer-Capital.
What account would you NOT find in a post closing trial balance? -Correct Answer-Postage Costs.
The Capital Account gets closed to: -Correct Answer-It doesn't get closed.
When closing Revenue to Income Summary, you do what to the Revenue Account? -Correct Answer-
Debit Revenue.
Is Accounts Receivable a permanent or temporary account? -Correct Answer-Permanent.
Is "Accounts Payable" a permanent or temporary account? -Correct Answer-Temporary.
Which account gets closed first at the end of the accounting cycle? -Correct Answer-Revenue.
Is "Office Equipment" a permanent or temporary account? -Correct Answer-Permanent.
Income Summary appears under which category in "Chart of Accounts?" -Correct Answer-Owner's
Equity.
Is "Gasoline Expense" a permanent or temporary account? -Correct Answer-Temporary.
T/F: Purchase returns and allowances increase the cost of merchandise purchased. -Correct Answer-
False.
Purchases of merchandise for resale are debited to a cost account called: -Correct Answer-Merchandise
purchases.
, T/F: When the seller collects sales tax, this is considered an asset. -Correct Answer-False.
T/F: When the supplier has prepaid freight costs, the freight charges appear as an Account Payable on
the buyer's books. -Correct Answer-True.
T/F: The sales journal contains information on all sales a business makes. -Correct Answer-False.
T/F: When posting from the sales or purchase journal the first step is cross footing. -Correct Answer-
False.
T/F: Merchandise Purchases for resale are expenses. -Correct Answer-True.
The left side of every account is the _____ side. -Correct Answer-Debit.
T/F: When making a purchase by cash, that purchase is entered into the purchase journal. -Correct
Answer-False.
The reduction in price of merchandise due to its being unsatisfactory or damaged is called a: -Correct
Answer-Sales allowance.
Sales returns and allowances have a(n)________effect on Owner's Equity. -Correct Answer-Negative.
The Purchase Journal contains entries for Sales Tax Payable. -Correct Answer-False.
A special journal is one that is: -Correct Answer-Used for one type of transaction only.
T/F: Freight In is a liability. -Correct Answer-False; Expense.
T/F: The Sales Journal is for Accounts Payable. -Correct Answer-False.
