Reference no: EM132959277

Problem 1: Which of the following accounts will be directly closed to Capital at the end of the fiscal year?

A) Salaries Expense

B) Fees Revenue

C) Withdrawals

D) Depreciation Expense

Problem 2: The beginning capital balance is $1,000; there are no additional investments or withdrawals by the owner during the accounting period. The period's revenue is $500 and expenses total $450. What is the ending capital balance (after closing entries)?

A) $1,050

B) $1,500

C) $1,450

D) $50

Problem 3: A characteristic of a perpetual inventory method is that

A) it keeps continual track of inventory.

B) it records units on hand at the beginning of the period.

C) it records units sold immediately.

D) All of these answers are correct.

Problem 4: The Balance Sheet columns on the worksheet prepared for the Villeneuve Company had subtotals as follows debit column, $14,000, and credit column, $14,600. This information indicates that

A) the company incurred a net income of $600.

B) the company incurred a net loss of $600.

C) an error was made when preparing the adjustments in the worksheet.

D) a mathematical error was made in the worksheet.