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Chapter 5,6www.FOTAMAT-a.comChapter 4MULTIPLE CHOICE QUESTIONS1. 54.After the adjusting entries are journalized and posted to theaccounts in the general ledger, the balance of each account shouldagree with the balance shown on thea.b.c.d.adjusted trial balance.post-closing trial balance.the general journal.adjustments columns of the worksheet.2.Which of the following permanent account is changed duringthe closing process?a.b.c.d.Share Capital-ordinary.Retained Earnings.Unearned Revenue.None of the above.because in closing entries weclose div and income summaryin retained earnings, so it willchange3. The temporary account balances ultimately wind up in what account?a.b.c.d.4.a.b.c.d.5.a.b.c.d.Income Summary.Retained Earnings.Share Capital-ordinary.Comprehensive Income.The permanent accounts appear on which financial statement?Statement of Financial Position.Income Statement.Retained Earning Statements.Statement of Cash Flows.76.Closing entries are necessary forpermanent accounts only.temporary accounts only.both permanent and temporary accounts.permanent or real accounts only.
Chapter 5,6www.FOTAMAT-a.com6. Each of the following accounts is closed to Income Summary excepta.b.c.d.Expenses.DividendsRevenues.All of these are closed to Income Summary.7. Closing entries are madea. in order to terminate the business as an operating entity.b. so that all assets, liabilities, and equity accounts will have zerobalances when the next accounting period starts.c. in order to transfer net income (or loss) and dividends to RetainedEarnings .d. so that financial statements can be prepared.8. Closing entries area.b.c.d.an optional step in the accounting cycle.posted to the ledger accounts from the worksheet.made to close permanent or real accounts.journalized in the general journal.9. The income summary accounta.b.c.d.is a permanent account.appears on the statement of financial position.appears on the income statement.is a temporary account.10. If Income Summary has a credit balance after revenues and expenseshave been closed into it, the closing entry for Income Summary willinclude aa.b.c.d.debit to Retained Earnings.debit to Dividendscredit to Retained Earnings.credit to Dividends. الن اهوا كردت فلمن بنصكره نعكسه نخليه دبت و بالمقابل الرتيند ايرننق يكون كردت 11. Closing entries are journalized and posteda.b.c.d.before the financial statements are prepared.after the financial statements are prepared.at management's discretion.at the end of each interim accounting period.
Chapter 5,6www.FOTAMAT-a.com12. Closing entriesa.b.c.d.are prepared before the financial statements.reduce the number of permanent accounts.cause the revenue and expense accounts to have zero balances.summarize the activity in every account.13. Which of the following is a true statement about closing the books ofa corporation?a.b.c.d.Expenses are closed to the Expense Summary account.Only revenues are closed to the Income Summary account.Revenues and expenses are closed to the Income Summary account.Revenues, expenses, and the dividends account are closed to theIncome Summary account.14. Closing entries may be prepared from all but which one of thefollowing sources?a. Adjusted balances in the ledgerb. Income statement and statement of financial position columns of theworksheetc. statement of financial positiond. Income and retained earnings statements15. In order to close the Dividends account, thea.b.c.d.income summary account should be debited.income summary account should be credited.retained earnings account should be credited.retained earnings account should be debited.div is dr account, when weclose it we cr it, so RE is dr16. In preparing closing entriesa. each revenue account will be credited.b. each expense account will be credited.c. the retained earnings account will be debitedif there is net income for the period.d. the dividends account will be debited.Exp is dr account, when weclose it we cr it.17. The most efficient way to accomplish closing entries is toa. credit the income summary account for each revenue account balance.b. debit the income summary account for each expense account balance.c. credit the dividends account balance directly to the income summaryaccount.d. credit the income summary account for total revenues and debit theincome summary account for total expenses.
Chapter 5,6www.FOTAMAT-a.com18. The closing entry process consists of closinga.b.c.d.all asset and liability accounts.out the retained earnings account.all permanent accounts.all temporary accounts.19. The final closing entry to be journalized is typically the entry that closesthea.b.c.d.revenue accounts.dividends account.retained earnings account.expense accounts.20. An error has occurred in the closing entry process ifa.b.c.d.revenue and expense accounts have zero balances.the retained earnings account is credited for the amount of net income.the dividends account is closed to the retained earnings account.the Statement of financial position accounts have zero balances.21. The Income Summary account is an important account that is useda.b.c.d.during interim periods.in preparing adjusting entries.annually in preparing closing entries.annually in preparing correcting entries.22. The balance in the income summary account before it is closed will beequal toa. the net income or loss on the income statement.b. the beginning balance in the retained earningsaccount.c. the ending balance in the retained earningsaccount.d. zero. الن income statement عباره عن revenues - expense و ال income summary بنصكر فيه فالرصيد بكون الفرق , ً الريفنيو و االكسبنس ايضا بين الرفنيو و االكسبنس فبجذي
Chapter 5,6www.FOTAMAT-a.com23. After closing entries are posted, the balance in the retained earningsaccount in the ledger will be equal toa. the beginning retained earnings reported on the retained earningsstatement.b. the amount of the retained earnings reported on the statement offinancial positions.c. zero.d. the net income for the period.24. The income statement for the month of June, 2011 of TaylorEnterprises contains the following information: 7,000RevenuesExpenses: 2,0001,000Wages ExpenseRent Expense300Supplies Expense200Advertising Expense1003,600Insurance ExpenseTotal expenses 3,400Net incomeThe entry to close the revenue account includes aA.B.C.D.debit to Income Summary for 3,400.credit to Income Summary for 3,400.debit to Income Summary for 7,000.credit to Income Summary for 7,000.Rev 7000income sum 7000The entry to close the expense accounts includes aA.B.C.D.debit to Income Summary for 3,400.credit to Rent Expense for 1,000,credit to Income Summary for 3,600.debit to Wages Expense for 2,000.a- should dr for 3,600b- rightc- should be dr not crd- should be cr not dr
Chapter 5,6www.FOTAMAT-a.comAfter the revenue and expense accounts have been closed, the balance in IncomeSummary will beincome summaryA. 0.B. a debit balance of 3,400.rev - expC. a credit balance of 3,400.7000 - 3,600 3,400D. a credit balance of 7,000.rev expThe entry to close Income Summary to Retained Earnings includesA.B.C.D.a debit to Revenue for 7,000.credits to Expenses totalling 3,600.a credit to Income Summary for 3,400a credit to Retained Earnings for 3,400.the balance of IS will be closed in REIS cr 3400when we close it, we dr itIS Income sumaryand RE will be cr in the same amountAt June 1, 2011, Taylor reported Retained Earnings of 35,000. The companypaid no dividends during June. At June 30, 2011, the company will reportRetained Earnings ofA.B.C.D. 35,000. 42,000. 38,400. 31,600.End RE Beg RE NI - Div35,000 3,400 - 0 38,000
Chapter 5,6www.FOTAMAT-a.com25. The income statement for the year 2011 of Poole Co. contains thefollowing information: 70,000RevenuesExpenses: 45,000Wages Expense12,000Rent Expense6,000Advertising Expense6,000Supplies Expense2,500Utilities Expense2,000Insurance Expense73,500Total expenses (3,500)Net income (loss)The entry to close the expense accounts includes aA.B.C.D.debit to Income Summary for 3,500.credit to Income Summary for 3,500.debit to Income Summary for 73,500.debit to Wages Expense for 2,500.a- should dr for 73,500 ماله شغل bc- rightd- should be cr for 2,500After the revenue and expense accounts have been closed, the balance inIncome Summary will beA.B.C.D. 0.a debit balance of 3,500.a credit balance of 3,500.a credit balance of 70,000.IS balance Net income (loss)we have net loss, this means EXP REVso IS balance is DrThe entry to close Income Summary to Retained Earnings includesA.B.C.D.a debit to Revenue for 70,000.credits to Expenses totalling 73,500.a credit to Income Summary for 3,500.a credit to Retained Earnings for 3,500.as said in question 29IS is Dr, when we close it we Cri.
Chapter 5,6www.FOTAMAT-a.comAt January 1, 2011, Poole reported Retained Earnings of 50,000. Dividends forthe year totalled 10,000. At December 31, 2011, the company will reportRetained Earnings ofA.B.C.D. 13,500. 36,500. 40,000. 43,500.End RE Beg RE NI - Div50,000 - 3,500 - 10,000 36,500After all closing entries have been posted, the Income Summary account willhave a balance ofA.B.C.D. 0. 3,500 debit. 3,500 credit. 36,500 credit.because we close everythingAfter all closing entries have been posted, the revenue account will have abalance ofA.B.C.D. 0. 70,000 credit. 70,000 debit. 3,500 credit.26. A post-closing trial balance is prepareda. 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 areposted.d. before closing entries have been journalized but after the entries areposted.27. All of the following statements about the post-closing trial balance arecorrect except ita. shows that the accounting equation is in balance.b. provides evidence that the journalizing and posting of closing entrieshave been properly completed.c. contains only permanent accounts.d. proves that all transactions have been recorded.
Chapter 5,6www.FOTAMAT-a.com28. A post-closing trial balance will showa.b.c.d.only permanent account balances.only temporary account balances.zero balances for all accounts.the amount of net income (or loss) for the period.29. A post-closing trial balance should be prepareda.b.c.d.before closing entries are posted to the ledger accounts.after closing entries are posted to the ledger accounts.before adjusting entries are posted to the ledger accounts.only if an error in the accounts is detected.30. A post-closing trial balance will showa.b.c.d.zero balances for all accounts.zero balances for statement of financial position accounts.only statement of financial position accounts.only income statement accounts.31. The purpose of the post-closing trial balance is toa. prove that no mistakes were made.b. prove the equality of the statement of financial position accountbalances that are carried forward into the next accounting period.c. prove the equality of the income statement account balances that arecarried forward into the next accounting period.d. list all the statement of financial position accounts in alphabetical orderfor easy reference.32. The balances that appear on the post-closing trial balance will matchthea.income statement account balances after adjustments.b. statement of financial position account balances after closing entries.c. income statement account balances after closing entries.d. statement of financial position account balances after adjustments.33. Which account listed below would be double ruled in the ledger as partof the closing process?a.b.c.d.CashRetained EarningsDividendsAccumulated Depreciation
Chapter 5,6www.FOTAMAT-a.com34. A double rule applied to accounts in the ledger during the closingprocess implies thata.b.c.d.the account is an income statement account.the account is a statement of financial position account.the account balance is not zero.a mistake has been made, since double ruling is prescribed.35. The heading for a post-closing trial balance has a date line that is similarto the one found ona.b.c.d.a statement of financial position.an income statement.a retained earnings statement.the worksheet.36. Which account balance will change between the adjusted trial balanceand the post-closing trial balance?a.b.c.d.Retained EarningShare Capital-OrdinaryInterest PayableAccumulated Depreciation37. Which one of the following is usually prepared only at the end of acompany's annual accounting period?a.b.c.d.Preparing financial statementsJournalizing and posting adjusting entriesJournalizing and posting closing entriesPreparing an adjusted trial balance اشهر كل سنة 3 الباجي عادي نسويهم كل اشهر 6 كل 38. The step in the accounting cycle that is performed on a periodic basis(i.e., monthly, quarterly) isa.b.c.d.analyzing transactions.journalizing and posting adjusting entries.preparing a post-closing trial balance.posting to ledger accounts.39. The final step in the accounting cycle is to preparea.b.c.d.closing entries.financial statements.a post-closing trial balance.adjusting entries.
Chapter 5,6www.FOTAMAT-a.com40. Which of the following steps in the accounting cycle would notgenerally be performed daily?a.b.c.d.Journalize transactionsPost to ledger accountsPrepare adjusting entriesAnalyze business transactions41. Which of the following steps in the accounting cycle may beperformed most frequently?a.b.c.d.Prepare a post-closing trial balanceJournalize closing entriesPost closing entriesPrepare a trial balance42. Which of the following depicts the proper sequence of steps in theaccounting cycle?a. Journalize the transactions, analyze business transactions, prepare atrial balanceb. Prepare a trial balance, prepare financial statements, prepareadjusting entriesc. Prepare a trial balance, prepare adjusting entries, prepare financialstatementsd. Prepare a trial balance, post to ledger accounts, post adjusting entries43. The first required step in the accounting cycle isa.b.c.d.reversing entries.journalizing transactions in the book of original entry.analyzing transactions.posting transactions.44. Correcting entriesa. always affect at least one balance sheet account and one incomestatement account.b. affect income statement accounts only.c. affect statement of financial position accounts only.d. may involve any combination of accounts in need of correction.
Chapter 5,6www.FOTAMAT-a.com45. Topeka Bike Company received a 940 check from a customer for thebalance due. The transaction was erroneously recorded as a debit toCash 490 and a credit to Service Revenue 490. The correcting entryis كان يطالب فيه شخص ,940 استلم جيك بمبلغ a. debit Cash, 940; credit Accounts Receivable, 940.b. debit Cash, 450 and Accounts Receivable, 490; credit Service Revenue, 940.c. debit Cash, 450 and Service Revenue, 490; credit Accounts Receivable, 940.d. debit Accounts Receivable, 940; credit Cash, 450 and Service Revenue, 490. لمن قدم الخدمه للشخص A/R940service revenue 940 الحين الشخص دفعله فراح يسجل cash 940A/R940 لكن اهوا سجل 46. A correcting entrya. must involve one statement of financial position account and oneincome statement account.b. is another name for a closing entry.c. may involve any combination of accounts.d. is a required step in the accounting cycle.47. An unacceptable way to make a correcting entry is toa. reverse the incorrect entry.b. erase the incorrect entry.c. compare the incorrect entry with the correct entry and make a correctingentry to correct the accounts.d. correct it immediately upon discovery.
Chapter 5,6www.FOTAMAT-a.com48. Farr Company paid the weekly payroll on January 2 by debiting WagesExpense for 45,000. The accountant preparing the payroll entryoverlooked the fact that Wages Expense of 27,000 had been accruedat year end on December 31. The correcting entry isa. Wages Payable .27,000Cash .27,000b. Cash .18,000WagesExpense .18,000c. Wages Payable .27,000WagesExpense .27,000d. Cash .27,000WagesExpense .27,000 مسجلين Ans: Cwages exp 45000wages payable 4500027000 لكن شافو ان مو الحين شهر واحد 12 تخص فترة شهر 27000 فبشيلون بقللون االكسبنس و االيبلتيز
Chapter 5,6www.FOTAMAT-a.com49. Stine Company paid 530 on account to a creditor. The transaction waserroneously recorded as a debit to Cash of 350 and a credit toAccounts Receivable, 350. The correcting entry isa. Accounts Payable .530Cash .530b. Accounts Receivable .350Cash .350c. Accounts Receivable .350Accounts Payable .350d. Accounts Receivable .350Accounts Payable .530Cash .880Ans: D, لشخص يطالبهم 530 دفعو مفروض يسجلون A/P 530Cash530 لكن سجلو cash 350A/R 350, بقللون البايابل , فالحين لمن بعدلون بيعكسون الرسيفبل الن مفروض ما يتسجل 880 بقللون الكاش ب 530 و مفروض يقللونه ب 350 الن زادوه اهوا ب فيقللونه بالي زادو اول شي و يقللونه بالي مفروض يقللونه اول مرا
Chapter 5,6www.FOTAMAT-a.com50. A lawyer collected 830 of legal fees in advance. He erroneouslydebited Cash for 380 and credited Accounts Receivable for 380. Thecorrecting entry isa. Cash .380Accounts Receivable .450Unearned Revenue .830b. Cash .830Service Revenue .830c. Cash .450Accounts Receivable .380Unearned Revenue .830d. Cash .450Accounts Receivable .450Ans: C, مفروض يسجل 830 استلم مقدم cash 830unearned revenue اهوا سجل cash 380A/R30 فالحين بعدل قيمة الكاش بالفرق فيعكسه , بصكر الرسيفبل الن مفروض ما يسجله و يسجل unearned rev
Chapter 5,6www.FOTAMAT-a.comOn May 25, Carlin Company received a 550 check from Andy Jeter forservices to be performed in the future. The bookkeeper for Carlin Companyincorrectly debited Cash for 550 and credited Accounts Receivable for 550.The amounts have been posted to the ledger. To correct this entry, thebookkeeper should:A.B.C.D.debit Cash 550 and credit Unearned Service Revenue 550.debit Accounts Receivable 550 and credit Service Revenue 550.debit Accounts Receivable 550 and credit Cash 550.debit Accounts Receivable 550 and credit Unearned Service Revenue 550. لخدمة بقدمها بعدين 550 استلم مقدم مفروض يسجل cash 550unearned revenue 550 اهوا سجل cash 550A/R550 بس الرسيفبل مفروض ما , الكاش صح يسجله , فبصكر الرسيفبل الن مفروض ما يسجله فيعكسه و يسجل unearned rev
Chapter 5,6www.FOTAMAT-a.com51. On March 8, Fernetti Company bought office supplies on account fromthe Flint Company for 880. Fernetti Company incorrectly debited OfficeEquipment for 800 and credited Accounts Payable for 800. The entrieshave been posted to the ledger. the correcting entry should be:a. Office Supplies .880Accounts Payable .880b. Office Supplies .880Accounts Payable .800Office Equipment .80c. Office Supplies .880Office Equipment .880d. Office Supplies .880Office Equipment .800Accounts Payable .80Ans: D المفروض تسجله supplies 880A/P880 اهيا سجلت Equip 80052. The following information (in thousands) is for Zháng Office Supplies:Zháng Office SuppliesStatement of Financial PositionDecember 31, 2011TrademarkLandBuldingLesss: accumLand held forInvestmentPrepaidinsuranceInventoryA/RCashTotal 050,00065,000530,000-Share capitalR/E120,000250,000A/PSalariea payable60,00010,000Mortage payable90,000370,00080,000Total equity and liabilitiesThe total dollar amount of assets to be classified as current assets isA.B.C.D. 290,000. 215,000. 180,000. 145,000.30 70 50 65160,000530,000
Chapter 5,6www.FOTAMAT-a.comThe total dollar amount of assets to be classified as property, plant, andequipment isA.B.C.D. 320,000. 170,000. 245,000. 190,000.90 80The total dollar amount of assets to be classified as investments isA.B.C.D. 0. 150,000. 75,000. 180,000.The total dollar amount of liabilities to be classified as currentliabilities isA.B.C.D. 70,000. 60,000. 150,000. 160,000.10 6053. All of the following are property, plant, and equipment . The first item listed under current liabilities is usuallya.b.c.d.accounts payable.notes payable.salaries payable.taxes payable.55. Office Equipment is classified in the statement of financial position asa.b.c.d.a current asset.property, plant, and equipment.an intangible asset.a long-term investment.56. A current asset isa.b.c.d.the last asset purchased by a business.an asset which is currently being used to produce a product or service.usually found as a separate classification in the income statement.an asset that a company expects to convert to cash or use up withinone year.
Chapter 5,6www.FOTAMAT-a.com57. An intangible asseta.b.c.d.does not have physical substance, yet often is very valuable.is worthless because it has no physical substance.is converted into a tangible asset during the operating cycle.cannot be classified on the statement of financial position because itlacks physical substance.58. Liabilities are generally classified on a statement of financial positionasa.b.c.d.small liabilities and large liabilities.present liabilities and future liabilities.tangible liabilities and intangible liabilities.current liabilities and non-current liabilities.59. Which of the following would not be classified a Non-current liability?a.b.c.d.Current maturities of long-term debtBonds payableMortgage payableLease liabilities60. Which of the following liabilities are not related to the operating cycle?a.b.c.d.Wages payableAccounts payableUtilities payableBonds payable61. Intangible assets include each of the following excepta.b.c.d.copyrights.goodwill.land improvements.patents.62. It is not true that current assets are assets that a company expects toa.b.c.d.realize in cash within one year.sell within one year.use up within one year.acquire within one year.63. The operating cycle of a company is the average time that is requiredto go from cash toa.b.c.d.sales in producing revenues.cash in producing revenues.inventory in producing revenues.accounts receivable in producing revenues.
Chapter 5,6www.FOTAMAT-a.com64. 156. On a classified statement of financial position, current assetsare customarily listeda.b.c.d.in alphabetical order.with the largest dollar amounts first.in the reverse order of liquidity.in the order of acquisition.65. Intangible assets area. listed under current assets on the statement of financial position.b. not listed on the statement of financial position because they do nothave physical substance.c. noncurrent resources.d. listed as a long-term investment on the statement of financial position.66. The relationship between current assets and current liabilities isimportant in evaluating a company'sa.b.c.d.profitability.liquidity.market value.accounting cycle.67. The most important information needed to determine if companiescan pay their current obligations is thea.b.c.d.net income for this year.projected net income for next year.relationship between current assets and current liabilities.relationship between short-term and N on-current liabilities.
Chapter 5,6www.FOTAMAT-a.com68. The following items (in thousands) are taken from the financialstatements of Huang Company for the year ending December 31,2011: 18,000Accounts payable11,000Accounts receivable28,000Accumulated depreciation – equipment21,000Advertising expense15,000Cash42,000Share Capital-ordinary14,000Dividends12,000Depreciation expense210,000Equipment3,000Insurance expense70,000Note payable, due 6/30/126,000Prepaid insurance (12-month policy)17,000Rent expense60,000Retained earnings (1/1/11)32,000Salaries expense133,000Service revenue4,000Supplies6,000Supplies expenseWhat is the company’s net income for the year ending December 31, 2011?A.B.C.D. 133,000 42,000 28,000 12,000revenues - expensesrevenues 133exp 21 12 3 17 32 6
Chapter 5,6www.FOTAMAT-a.comWhat is the balance that would be reported for equity at December 31, 2011?A.B.C.D. 102,000 130,000 144,000 158,000Equity RE SH.CSH.C 42RE ending beg NI - DivRE end 60 42 - 14 88What are total current assets at December 31, 2011?A.B.C.D. 26,000 32,000 36,000 218,00011 15 6 4What is the book value of the equipment at December 31, 2011?A.B.C.D. 218,000 190,000 182,000 150,000210-28What are total current liabilities at December 31, 2011?A.B.C.D. 18,000 70,000 88,000 018 70What are total Non-current liabilities at December 31, 2011?A.B.C.D. 0 70,000 88,000 90,000What is total equity and liabilities at December 31, 2011?A.B.C.D. 176,000 190,000 218,000 232,000130 88 0
Chapter 5,6www.FOTAMAT-a.comThe sub-classifications for assets on the company’s classified statement offinancial position would include all of the following except:A.B.C.D.Current Assets.Property, Plant, and Equipment.Intangible Assets.Long-term Assets.The current assets should be listed on Dinkel’s statement of financial position inthe following order:A.B.C.D.accounts receivable, prepaid insurance, equipment, cash.accounts receivable, prepaid insurance, supplies, cash.prepaid insurance, supplies, accounts, receivable, cash.equipment, supplies, prepaid insurance, accounts receivable,cash.69. Which statement about long-term investments is not true?a. They will be held for more than one year.b. They are not currently used in the operation of the business.c. They include investments in stock of other companies and land held forfuture use.d. They can never include cash accounts.70. What is the order in which assets are generally listed on a classifiedstatement of financial position?A. Current and long-term.B. Intangible assets; long-term investments; property, plant, and equipment;current.C. Long-term investments; property, plant, and equipment; intangible assets;currentD. Intangible assets; property, plant, and equipment; long-term investments;current.
Chapter 5,6www.FOTAMAT-a.com71. These are selected account balances on December 31, 2011. 100,000Land (location of the corporation’s office building)150,000Land (held for future use)600,000Corporate Office ice Furniture300,000Accumulated DepreciationWhat is the total amount of property, plant, and equipment that will appear onthe statement of financial position?A.B.C.D. 1,300,000 1,100,000 1,600,000 950,000100 600 450 100-30072. Which classification of assets will appear first in the Statement ofFinancial Position?a.b.c.d.Current Assets.Long-term investments.Property,Plant and Equipment.Intangible Assets.73. Which classification of assets will appear last in the Statement ofFinancial Position?a.b.c.d.Intangible Assets.Current Assets.Long-term investments.Property,Plant and Equipment.74. Which account will appear last under the current assets classificationon the Statement of Financial Position?a.b.c.d.Accounts Receivable.Prepaid Expenses.Short-term investments.cash.
Chapter 5,6www.FOTAMAT-a.com75. Which of the following classification appears last in the Statement ofFinancial Position?a.b.c.d.Non-current Liabilities.Equity.Current Liabilities.Reserves.76. Which of the following is in the proper position?a.b.c.d.Equity;Current Liabilities;Non-current Liabilities.Equity;Non-current Liabilities;Current Liabilities.Current Liabilities;Non-current Liabilities;Equity.Non-Current Liabilities; current Liabilities;Equity.Use the following data (in thousands) for questions 86 89 943Long-term debt 880Prepaid m investmentsNotes payable in 20122,668Cash5,655Accumulated depreciation1,444Accounts payable368Notes payable after 201210,000Share capital-ordinary3,063 21,954Retained earnings1,696Accounts receivable1,256Inventories 21,954Total77. Total assets on the Statement of Financial Position for 2012 are:a.b.c.d. 21,954 16,299 27,609 15,419880 11500 264 3690 2668 1696 1256-5655
Chapter 5,6www.FOTAMAT-a.com78. The subtotal of the last asset classificat
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. End RE Beg RE NI - Div 50,000 - 3,500 - 10,000 36,500 because we close everything
