64.When closing the accounts at the end of the period, which of the following is closed directly into the Retained Earnings account?
A. Depreciation Expense.
B. Accumulated Depreciation.
C. Revenue and liability accounts.
D. The Income Summary account.
65.Closing entries never involve posting a credit to the:
A. Income Summary account.
B. Accumulated Depreciation account.
C. Dividends account.
D. Depreciation Expense account.
66.Which of the following account titles would
not
be debited in the process of preparing closing entries for Andrew's Auto Shop?
A. Income Summary.
B. Fees Earned.
C. Dividends.
D. Retained Earnings.
67.If a business closes its accounts only at year-end:
A. Financial statements are prepared only at year-end.
B. Adjusting entries are made only at year-end.
C. Revenue and expense accounts reflect year-to-date amounts throughout the year.
D. Monthly and quarterly financial statements cannot be prepared.
68.Closing entries should be made:
A. Every year.
B. Only when an entity goes out of business.
C. Only if there is a profit.
D. Only if there is a loss.
69.Which of the following accounts should
not
be closed?
A. Expenses and revenues.
B. Dividends.
C. Income summary.
D. Accumulated depreciation.
70.Which of the following accounts will be closed to Income Summary?
A. Prepaid Expenses.
B. Unearned Revenue.
C. Dividends.
D. Depreciation Expense.
71.If sales are $270,000, expenses are $220,000 and dividends are $30,000, Income Summary:
A. Will have a credit balance of $50,000.
B. Will have a debit balance of $50,000.
C. Will have a debit balance of $20,000.
D. Will have a credit balance of $20,000.
72.Refer to the information above. The entry to close the Fees Earned account will:
A. Produce a zero balance in that account when posted.
B. Include a debit to Income Summary.
C. Include a credit to Fees Earned.
D. Include a debit to Capital Stock.
73.Refer to the information above. The entry to close Salaries Expense account will:
A. Transfer the total of Salaries Expense directly to Retained Earnings.
B. Include a debit to Income Summary.
C. Include a debit to Salaries Expense.
D. Include a credit to Capital Stock.