Question Details

A post-closing trial balance is prepared



1.	The income statement for the year 2011 of Poole Co. contains the following information:
Revenues		$70,000
Expenses:
	Wages Expense	$45,000
	Rent Expense	12,000
	Advertising Expense	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	    2,000
		Total expenses 		  73,500
Net income (loss)		$(3,500)

After all closing entries have been posted, the Income Summary account will have a balance of
a.	$0.
b.	$3,500 debit.
c.	$3,500 credit.
d.	$36,500 credit.


	2.	The income statement for the year 2011 of Poole Co. contains the following information:
Revenues		$70,000
Expenses:
	Wages Expense	$45,000
	Rent Expense	12,000
	Advertising Expense	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	    2,000
		Total expenses 		  73,500
Net income (loss)		$(3,500)

After all closing entries have been posted, the revenue account will have a balance of
a.	$0.
b.	$70,000 credit.
c.	$70,000 debit.
d.	$3,500 credit.


	3.	A post-closing trial balance is prepared
a.	after closing entries have been journalized and posted.
b.	before closing entries have been journalized and posted.
c.	after closing entries have been journalized but before the entries are posted.
d.	before closing entries have been journalized but after the entries are posted.


4.	All of the following statements about the post-closing trial balance are correct except it
a.	shows that the accounting equation is in balance.
b.	provides evidence that the journalizing and posting of closing entries have been properly completed.
c.	contains only permanent accounts.
d.	proves that all transactions have been recorded.


	5.	A post-closing trial balance will show
a.	only permanent account balances.
b.	only temporary account balances.
c.	zero balances for all accounts.
d.	the amount of net income (or loss) for the period.



Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help