Financial statements and closing quiz

1. 1.Buying equipment for cash is:

   OperatingFinancingAn expenseInvesting
2. 2.Borrowing cash from a bank is classified in a cash-flow view as:

   OperatingInvestingNot shownFinancing
3. 3.Accumulated depreciation is shown on the balance sheet as:

   An expenseEquityA liabilityA deduction from the related asset
4. 4.Owner Drawings are closed:

   To Income SummaryTo CashThey're not closedDirectly to Owner Capital
5. 5.Assets $42,000; liabilities $15,500. Total equity on the balance sheet?

   Your answer (dollars)
6. 6.A post-closing trial balance should contain:

   Income SummaryDrawingsRevenue and expensesOnly permanent accounts
7. 7.Opening capital $20,000 + investment $3,000 + net income $5,600 − drawings $2,000. Ending capital?

   Your answer (dollars)
8. 8.An error is found in a period that's already closed. Best practice:

   Ignore itDelete the original entrySilently edit the closed periodRecord a documented correcting entry in the current open period
9. 9.Income Summary with a debit balance before its closing entry indicates:

   An errorDrawingsA net incomeA net loss
10. 10.The first closing entry typically:

    Closes assetsCloses capital to drawingsReverses accrualsCloses revenues to Income Summary
11. 11.The balance sheet reports:

    Performance over a periodOnly cashOnly liabilitiesFinancial position at a date
12. 12.After closing, which accounts have zero balances? Select all that apply.

    Rent ExpenseIncome SummaryAccounts ReceivableService Revenue

    Select all that apply.

13. 13.Which appear on the income statement? Select all that apply.

    Interest RevenueOwner DrawingsUnearned RevenueDepreciation Expense

    Select all that apply.

14. 14.Match each cash movement to its category.

    Collect from customersChoose…OperatingInvestingFinancingRepay loan principalChoose…OperatingInvestingFinancingBuy a delivery vanChoose…OperatingInvestingFinancingOwner investmentChoose…OperatingInvestingFinancing
15. 15.The month-end close usually starts with:

    Printing statementsResetting the chartClosing entriesMaking sure all source documents are recorded (cutoff)
16. 16.Revenue $15,000; expenses $9,400; drawings $2,000. Net income?

    Your answer (dollars)

Explanations for every option appear after you submit. Financial statements and closing quiz is self-practice, not a proctored test.