Closing Accounts Quiz

A debit entry is required to close which of the following accounts?

• Sales returns

• Inventory

• Inventory Gain

• Cost of Sales

A debit entry is required to close which of the following accounts?

• Discount revenue

• Discount expense

• Inventory loss

• Sales returns

A credit entry is required to close which of the following accounts?

• Sales

• Inventory gain

• Discount revenue

• Sales returns

Which of the following accounts would be closed?

• Allowance for doubtful debts

• Accounts Receivable

• Bad Debts

• All of the above

Which of the following accounts would be closed with a credit entry?

• Cost of sales

• Cartage inwards

• Rent expense

• All of the above

Which of the following accounts would be closed with a credit entry?

• Sales

• Discount Revenue

• Loan

• Interest expense

If a business runs a net profit for a particular reporting period we would expect?

• The profit and loss summary account and capital and both credited

• The profit and loss summary account and capital and both debited

• The profit and loss summary account is debited and the capital account is credited

• The profit and loss summary account is credited and the capital account is debited

If a business runs a net loss for a particular reporting period we would expect?

• The profit and loss summary account and capital and both credited

• The profit and loss summary account and capital and both debited

• The profit and loss summary account is debited and the capital account is credited

• The profit and loss summary account is credited and the capital account is debited

If a business has the following transactions Cash sales $20,000, credit sales $15,000, cost of sales $10,000, rent $15,000 and wages $30,000. At the end of the reporting period we would expect?

• The profit and loss summary account and capital and both credited

• The profit and loss summary account and capital and both debited

• The profit and loss summary account is debited and the capital account is credited

• The profit and loss summary account is credited and the capital account is debited

Under what circumstances would the cost of sales account be debited at the end of the reporting period

• The selling price value of sales returns for the period exceeded cost of sales from selling inventory

• The value of cost of sales exceeded the cost price value of sales returns for the period

• The business sold lots of inventory for the period

• The cost price value of sales returns for the period exceeded cost of sales from selling inventory