Which of the following account groups are all considered nominal accounts

105. Which of the following account groups are all considered nominal accounts?
     A. Cash, Retained Earnings, Wages Payable
     B. Prepaid Insurance, Property, Plant & Equipment, Fees Earned
     C. Capital Stock, Dividends, Income Summary
     D. Rent Revenue, Fees Earned, Miscellaneous Expense
106. There are four closing entries. The first one is to close , the second one is to close , the third one is to close , and the last one is to close .
     A. revenues, expenses, income summary, dividends
     B. expenses, assets, income summary, capital stock
     C. retained earnings, dividends, income summary, assets
     D. dividends, income summary, expenses, revenues
107. Closing entries
     A. need not be journalized if adjusting entries are prepared
     B. need not be posted if the financial statements are prepared from the work sheet
     C. are not needed if adjusting entries are prepared
     D. must be journalized and posted
108. Closing entries are dated in the journal as of
     A. the date they are actually journalized, although they are generally prepared after the end of the accounting period
     B. the last day of the accounting period, although they are actually journalized after the end of the accounting period
     C. the first day of the accounting period, although they are actually journalized after the end of the accounting period
     D. the first day of the subsequent accounting period
109. Which of the accounts below would be closed by posting a debit to the account?
     A. Unearned Revenue
     B. Fees Earned
     C. Dividends
     D. Miscellaneous Expense
110. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
     A. Supplies Expense
     B. Accumulated Depreciation
     C. Prepaid Insurance
     D. Unearned Rent
111. Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?
     A. Salaries Expense
     B. Fees Earned
     C. Unearned Rent
     D. Depreciation Expense
112. Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?
     A. Rent Expense
     B. Fees Earned
     C. Income Summary
     D. Depreciation Expense
113. The entry to close the appropriate insurance account at the end of the accounting period is
     A. debit Income Summary; credit Prepaid Insurance
     B. debit Prepaid Insurance; credit Income Summary
     C. debit Insurance Expense; credit Income Summary
     D. debit Income Summary; credit Insurance Expense
114. Which of the following accounts ordinarily appears in the post-closing trial balance?
     A. Fees Earned
     B. Supplies Expense
     C. Dividends
     D. Unearned Rent

The Correct Answer and Explanation is :

Here are the correct answers with explanations for each of the multiple-choice questions:

105. Which of the following account groups are all considered nominal accounts?
Answer: D. Rent Revenue, Fees Earned, Miscellaneous Expense
Explanation: Nominal accounts are temporary accounts that are closed at the end of an accounting period. These include revenue accounts (like Rent Revenue and Fees Earned) and expense accounts (like Miscellaneous Expense). They are used to record income and expenditure for a period and are reset to zero at the end of the period.

106. There are four closing entries. The first one is to close , the second one is to close , the third one is to close , and the last one is to close .
Answer: A. revenues, expenses, income summary, dividends
Explanation: Closing entries are made to transfer the balances of temporary accounts (revenues, expenses, income summary, dividends) to permanent accounts like Retained Earnings. The sequence is: 1) Close revenues to income summary, 2) Close expenses to income summary, 3) Close income summary to Retained Earnings, and 4) Close dividends to Retained Earnings.

107. Closing entries
Answer: D. must be journalized and posted
Explanation: Closing entries must be both journalized and posted to the general ledger in order to update the balances of the permanent accounts and reset the temporary accounts to zero.

108. Closing entries are dated in the journal as of
Answer: B. the last day of the accounting period, although they are actually journalized after the end of the accounting period
Explanation: Closing entries are made after the end of the accounting period but are dated as of the last day of the accounting period to reflect that they apply to that period’s financial activity.

109. Which of the accounts below would be closed by posting a debit to the account?
Answer: D. Miscellaneous Expense
Explanation: Expense accounts like Miscellaneous Expense have a normal debit balance. To close them, a credit is posted to the account, and the offsetting debit is posted to the Income Summary.

110. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
Answer: A. Supplies Expense
Explanation: Expense accounts like Supplies Expense are closed to Income Summary. Income Summary is then closed to Retained Earnings at the end of the accounting period.

111. Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?
Answer: C. Unearned Rent
Explanation: Unearned Rent is a liability account and is not closed to the Income Summary. Only revenue and expense accounts are closed to Income Summary.

112. Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?
Answer: C. Income Summary
Explanation: The balance in the Income Summary account, which reflects the net income or loss for the period, is transferred to the Retained Earnings account.

113. The entry to close the appropriate insurance account at the end of the accounting period is
Answer: D. debit Income Summary; credit Insurance Expense
Explanation: Insurance Expense is an expense account that needs to be closed to Income Summary. To do this, a debit to Income Summary and a credit to Insurance Expense are made.

114. Which of the following accounts ordinarily appears in the post-closing trial balance?
Answer: D. Unearned Rent
Explanation: Unearned Rent is a liability account that is permanent and will appear in the post-closing trial balance. Other accounts like Fees Earned, Supplies Expense, and Dividends are temporary accounts that do not appear in the post-closing trial balance.

I’ll create a visual representation of the steps for closing entries.

Here’s a diagram showing the steps involved in closing entries for accounting. It visually explains the process from closing revenue and expense accounts to transferring balances to Retained Earnings. Let me know if you need any further clarifications!