21 the dividends account is a permanent account 22 the common stock account is a per 4306727

21 the dividends account is a permanent account 22 the common stock account is a per 4306727

21) The Dividends account is a permanent account.

22) The Common Stock account is a permanent account.

23) The beginning balance in the Common Stock account of a company was $10,000. The revenues and expenses were $200,000 and $120,000, respectively. During the year, the company declared and paid dividends for $4,000. The ending balance in the Retained Earnings was $76,000. (Assume that the opening balance of Retained Earnings was zero.)

24) The beginning balance in the Retained Earnings account of a company was $10,000. The revenues and expenses were $200,000 and $120,000, respectively. During the year, the company paid dividends of $4,000. The ending balance in Retained Earnings was $90,000.

25) At the beginning of the year, the total stockholders' equity of Alpha Technologies Inc. was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. The company did not declare dividends. No common stock was issued during the year. The total stockholders' equity at the end of the year will amount to $90,000.

26) The beginning balance in the Common Stock account of Alpha Technologies Inc. was $80,000. The revenues and expenses amounted to $60,000 and $40,000, respectively. During the year, the company did not declare any dividends or issue common stock. The Common Stock account will have $100,000 at the end of the year.

27) An account that is not closed at the end of the period is called a(n) ________.

A) expense account

B) temporary account

C) permanent account

D) revenue account

28) The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________.

A) closing entries

B) opening entries

C) adjusting entries

D) temporary accounts

29) Revenues and expenses are transferred to the ________ account before their final transfer into the Retained Earnings account.

A) Net Income

B) Income Summary

C) Dividends

D) Assets

30) Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?

A) debit Accumulated Depreciation and credit Income Summary

B) debit Depreciation Expense and credit Income Summary

C) debit Income Summary and credit Accumulated Depreciation

D) debit Income Summary and credit Depreciation Expense

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