Question 1

The following account balances were taken from the adjusted trial balance of Kendall Company:  What is the Retained Earnings account balance that will be included on the post-closing trial balance?

Accepted Answer

A)  $19,900
B)  $7,400
C)  $2,900
D)  $24,400E) A) and B)
F) B) and D)

Question 2

What effect will the following closing entry have on the retained earnings account?

Accepted Answer

A)  Retained earnings will remain unchanged.
B)  Retained earnings will decrease by $3,550.
C)  Retained earnings will increase by $3,550.
D)  Retained earnings will be transferred to the income statement.E) A) and C)
F) A) and D)

Question 3

A transaction has been recorded in the T-accounts of Vernon Company as follows:   Which of the following reflects how this event affects the company's financial statements?

Accepted Answer

A)  Option A
B)  Option B
C)  Option C
D)  Option DE) A) and D)
F) B) and C)

Question 4

The entry to record revenue earned on account includes a debit to accounts receivable and a credit to revenue.

Accepted Answer

A) True 
 B)False

Question 5

Assume that a company recorded the following journal entry, with regards to the impact of this journal entry.
a)_____ Total claims stay the sameb)_____ Total assets stay the samec)_____ Total liabilities decreased)_____ Cash flows from operating activities increasese)_____ Stockholders' equity stays the same

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true?

Accepted Answer

A)  Adjusting entries are recorded after the closing entries have been recorded.
B)  Equal totals in a trial balance guarantees that no errors were made in the recording process.
C)  Debits are equal to credits only after closing entries have been recorded.
D)  The balance in the retained earnings account in the trial balance will equal the retained earnings balance on the balance sheet only after closing entries have been posted to the general ledger.E) B) and C)
F) B) and D)

Question 7

The left side of a T-account is the debit side.

Accepted Answer

A) True 
 B)False

Exam 13: The Double-Entry Accounting System

The entry to record revenue earned on account includes a debit to accounts receivable and a credit to revenue.

Correct Answer
verified

The following account balances were taken from the adjusted trial balance of Kendall Company: What is the Retained Earnings account balance that will be included on the post-closing trial balance?

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

A transaction has been recorded in the T-accounts of Vernon Company as follows: Which of the following reflects how this event affects the company's financial statements?

Correct Answer
verified

What effect will the following closing entry have on the retained earnings account?

Correct Answer
verified

Assume that a company recorded the following journal entry, with regards to the impact of this journal entry. a)___ Total claims stay the sameb)_ Total assets stay the samec)_ Total liabilities decreased)_ Cash flows from operating activities increasese)___ Stockholders' equity stays the same

Correct Answer
verified

The left side of a T-account is the debit side.

Correct Answer
verified

Exam 13: The Double-Entry Accounting System

The entry to record revenue earned on account includes a debit to accounts receivable and a credit to revenue.

Correct AnswerverifiedShow Answer

The following account balances were taken from the adjusted trial balance of Kendall Company: What is the Retained Earnings account balance that will be included on the post-closing trial balance?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

A transaction has been recorded in the T-accounts of Vernon Company as follows: Which of the following reflects how this event affects the company's financial statements?

Correct AnswerverifiedShow Answer

What effect will the following closing entry have on the retained earnings account?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The left side of a T-account is the debit side.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified