Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo
Principles of Accounting, Volume 1: Financial Accounting

Multiple Choice

Principles of Accounting, Volume 1: Financial AccountingMultiple Choice
Search for key terms or text.
1.

LO 5.1Which of the following accounts is considered a temporary or nominal account?

  1. Fees Earned Revenue
  2. Prepaid Advertising
  3. Unearned Service Revenue
  4. Prepaid Insurance
2.

LO 5.1Which of the following accounts is considered a permanent or real account?

  1. Interest Revenue
  2. Prepaid Insurance
  3. Insurance Expense
  4. Supplies Expense
3.

LO 5.1If a journal entry includes a debit or credit to the Cash account, it is most likely which of the following?

  1. a closing entry
  2. an adjusting entry
  3. an ordinary transaction entry
  4. outside of the accounting cycle
4.

LO 5.1If a journal entry includes a debit or credit to the Retained Earnings account, it is most likely which of the following?

  1. a closing entry
  2. an adjusting entry
  3. an ordinary transaction entry
  4. outside of the accounting cycle
5.

LO 5.1Which of these accounts would be present in the closing entries?

  1. Dividends
  2. Accounts Receivable
  3. Unearned Service Revenue
  4. Sales Tax Payable
6.

LO 5.1Which of these accounts would not be present in the closing entries?

  1. Utilities Expense
  2. Fees Earned Revenue
  3. Insurance Expense
  4. Dividends Payable
7.

LO 5.1Which of these accounts is never closed?

  1. Dividends
  2. Retained Earnings
  3. Service Fee Revenue
  4. Income Summary
8.

LO 5.1Which of these accounts is never closed?

  1. Prepaid Rent
  2. Income Summary
  3. Rent Revenue
  4. Rent Expense
9.

LO 5.1Which account would be credited when closing the account for fees earned for the year?

  1. Accounts Receivable
  2. Fees Earned Revenue
  3. Unearned Fee Revenue
  4. Income Summary
10.

LO 5.1Which account would be credited when closing the account for rent expense for the year?

  1. Prepaid Rent
  2. Rent Expense
  3. Rent Revenue
  4. Unearned Rent Revenue
11.

LO 5.2Which of these accounts is included in the post-closing trial balance?

  1. Sales Revenue
  2. Salaries Expense
  3. Retained Earnings
  4. Dividends
12.

LO 5.2Which of these accounts is not included in the post-closing trial balance?

  1. Land
  2. Notes Payable
  3. Retained Earnings
  4. Dividends
13.

LO 5.2On which of the following would the year-end Retained Earnings balance be stated correctly?

  1. Unadjusted Trial Balance
  2. Adjusted Trial Balance
  3. Post-Closing Trial Balance
  4. The Worksheet
14.

LO 5.2Which of these accounts is included in the post-closing trial balance?

  1. Supplies Expense
  2. Accounts Payable
  3. Sales Revenue
  4. Insurance Expense
15.

LO 5.3If current assets are $112,000 and current liabilities are $56,000, what is the current ratio?

  1. 200 percent
  2. 50 percent
  3. 2.0
  4. $50,000
16.

LO 5.3If current assets are $100,000 and current liabilities are $42,000, what is the working capital?

  1. 200 percent
  2. 50 percent
  3. 2.0
  4. $58,000
PreviousNext
Order a print copy
Citation/Attribution

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution-NonCommercial-ShareAlike License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
Citation information

© Jul 16, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.