Question

QUESTION 20 After the closing entries have been posted, which of the following accounts would still have a balance? a. Salaries Expense b. Miscellaneous Revemes Oc Supplies Expense d. Accumulated Depreciation Equipment QUESTION 21 After the closing entries are journalized and posted, which of the following accounts would NOT have a balance? a. Service Revenue b. Cash c. Accounts Payable d. Office Supplies QUESTION 22 After the accounts are closed and the journal entries have been posted, which of the following accounts would have a balance? a. Payroll Taxes Expense b. Miscellaneous Expense c. Supplies d. Professional Expense

Answer 1

Question20

After the closing entries have been posted only accumulated depreciation equipment would have a balance . Salaries, miscellaneous expenses and supplies expense are Profit and loss items and temporary accounts where as accumulated depreciation is a permanent account and is balance sheet item and will have a balance

Question21

After the closing entries have been posted and journalized Service revenue will not have a balance as it is a revenue item in the profit and loss account . Cash ,Accounts payable and office supplies are all balance sheet items and will have a balance

Question22

After the closing entries have been journalized and posted Supplies would have a balance as it is a permanent account whereas payroll ,professional expenses and miscellaneous expenses are temporary accounts

Question23

This statement is True After posting the adjusted entries the balance of the depreciation expense account should agree with the amount shown in the income statement. The Adjustment Entry would be to debit depreciation and credit accumulated depreciation account

Question24

This statement is false .Adjustment entries are posted and to the books of accounts. If failed to do so ,it would lead to overstatement /understatement of income expenses liabilities and assets

Question25

This statement is False. Adjustment entries are made before closing entries . Closing entries close all temporary accounts at the end of the accounting that is revenue and expenses after all adjustments have been made as per the accounting framework