Question

7. Which of the following is the correct way to determine the net profit, and what is the net

profit?
A. Subtract the total expenses from revenue; the net profit is $2,358.50.
B. Add the total expenses to the revenue; the net profit is $2,358.50.
C. Subtract the total expenses from revenue; the net profit is $1,079.72.
D. Add the total expenses to the revenue; the net profit is $1,0740.90.

8. What is the net profit you reported on the income statement in Exam Figure 3?
A. $2,917.97 C. $1,709.72
B. $1,838.25 D. $1,079.72

9. The assets section of the balance sheet should include
A. Cash C. Cash
Equipment—Store Equipment—Office
Equipment—Office Equipment—Store
Prepaid Insurance P. Woodsley, Capital
Insurance Expense Net Profit
B. Cash D. Cash
Equipment—Store Prepaid Insurance
Equipment—Office Equipment—Store
Supplies Expense Equipment—Office
P. Woodsley, Capital Supplies

10. The owner’s equity section of the balance sheet should appear as
A. Owner’s Equity C. Owner’s Equity
P. Woodsley, Capital Woodsley, Capital
Plus Net Profit Less Drawing
Less P. Woodsley, Drawing Plus Net Profit
Total Owner’s Equity Total Owner’s Equity
B. Owner’s Equity D. Owner’s Equity
P. Woodsley, Capital Less Drawing
Less Drawing Plus Net Profit
Net Profit Total Owner’s Equity

11. Which of the following best describes a closing entry?
A. It’s an entry made in the balance sheet to close out the assets.
B. It’s an entry made in the trial balance to show a final entry.
C. It’s an entry made in the general journal to close a temporary ledger account.
D. It’s an entry made in the general ledger to close a permanent ledger account

Answer 1

To find the net profit, take all the costs and subtract it from the revenue. Net profit allows a company to see what they actually made after paying all of their expenses. Assets include: current assets, investments, property, plant and equipment, intangible assets and others that may fall under one of these categories. A closing entry is also know as a closing journal entry. These entries are made at the end of every accounting period to zero out all accounts and start fresh for the new period.

Answer 2

Hey girly! i know im late but I have the answers!

Step-by-step explanation:

7.C. Subtract the total expenses from revenue; the net profit is $1,079.72.

8.D. $1,079.72

9.D. Cash - prepaid - epi-store - epi- office - supplies

10.A. Owner's equity etccc..

11.C.It’s an entry made in the general journal to close a temporary ledger account

i know that these are all correct! thank chuuuu!