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 R...
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.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Clevercrownsolutions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
