Financial - Chapter 5

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

• Prepaid Insurance

• Unearned Service Revenue

• Prepaid Advertising

• Fees Earned Revenue

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

• Interest Revenue

• Prepaid Insurance

• Supplies Expense

• Insurance Expense

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

• outside of the accounting cycle

• an ordinary transaction entry

• a closing entry

• an adjusting entry

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

• an ordinary transaction entry

• an adjusting entry

• a closing entry

• outside of the accounting cycle

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

• Sales Tax Payable

• Dividends

• Unearned Service Revenue

• Accounts Receivable

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

• Utilities Expense

• Dividends Payable

• Fees Earned Revenue

• Insurance Expense

Which of these accounts is never closed?

• Dividends

• Retained Earnings

• Income Summary

• Service Fee Revenue

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

• Fees Earned Revenue

• Income Summary

• Accounts Receivable

• Unearned Fee Revenue

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

• 1. Accounts Receivable

• 1. Fees Earned Revenue

• 1. Unearned Fee Revenue

• 1. Income Summary

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

• Rent Expense

• Unearned Rent Revenue

• Prepaid Rent

• Rent Revenue