Have an account?
Skip to Content
Build your own quiz
25 questions
Show Answers
See Preview
- 1. Multiple ChoiceThe capital account's new balance after all closing entries are posted is verified by checking it with the amount of capital shown on the balance sheet at the end of the fiscal period.TrueFalse
- 2. Multiple ChoiceAll accounts in a general ledger are listed on a post-closing trial balance.TrueFalse
- 3. Multiple ChoiceAdjusting entries are recorded on the next journal page following the page on which the last daily transactions for the month are recorded.TrueFalse
- 4. Multiple ChoicePermanent accounts are also referred to as temporary accounts.TrueFalse
- 5. Multiple ChoicePreparing a worksheet at the end of the fiscal period to summarize the general ledger information needed to prepare financial statements is an application of the accounting concept Accounting Period Cycle.TrueFalse
- 6. Multiple ChoiceThe ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.TrueFalse
- 7. Multiple ChoiceAt the end of a fiscal period, the balances of temporary accounts are summarized and transferred to the owner's capital account.TrueFalse
- 8. Multiple ChoiceTemporary accounts must start each fiscal period with a zero balance.TrueFalse
- 9. Multiple ChoiceJournal entries used to prepare temporary accounts for a new fiscal period are closing entries.TrueFalse
- 10. Multiple ChoiceTo close a temporary account, an amount equal to its balance is recorded in the account on the side opposite to its balance.TrueFalse
- 11. Multiple ChoiceA source document is prepared for closing entries.TrueFalse
- 12. Multiple ChoiceThe income summary account balance must be reduced to zero to prepare the account for the next fiscal period.TrueFalse
- 13. Multiple ChoiceAdjustments are analyzed and plannedin the ledgerson the financial statementson a worksheetnone of these
- 14. Multiple ChoiceAfter the adjusting entry for Supplies has been posted, Supplies Expense has an up-to-date balance, which is thesame as the beginning balance for Suppliessame as the ending balance for Suppliesvalue of supplies bought during the fiscal periodvalue of supplies used during the fiscal period
- 15. Multiple ChoiceThe journal entry to adjust Prepaid Insurance isdebit Prepaid Insurance; credit Insurance Expensedebit Insurance Expense; credit Prepaid Insurancedebit Income Summary; credit Prepaid Insurancedebit Insurance Expense; credit Income Summary
- 16. Multiple ChoiceTemporary accounts begin each new fiscal period with adebit balancecredit balancezero balancebalance equal to the net income
- 17. Multiple ChoiceWhen the total expenses are greater than the total revenue,the income summary account has a credit balancethe income summary account has a debit balancedebits equal creditsnone of these
- 18. Multiple ChoiceInformation needed for closing entries is found in theIncome Statement and Balance Sheet columns of the worksheetIncome Statement and Adjustments columns of the worksheetTrial Balance and Adjustments columns of the worksheetTrial Balance and Balance Sheet columns of the worksheet
- 19. Multiple ChoiceThe journal entry to close the expense accounts isdebit Income Summary; credit owner's capitaldebit Income Summary for the total expenses; credit each expense accountdebit each expense account, credit Income Summarynone of these
- 20. Multiple ChoiceWhich accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue?Business EntityGoing ConcernMatching Expenses with RevenueAdequate Disclosure
- 21. Multiple Choice
The last step in the accounting cyle is to
journalize and post the closing entries
prepare a worksheet and financial statements
prepare a worksheet and financial statements
prepare a post-closing trial balance
- 22. Multiple ChoiceAccounts used to accumulate information from one fiscal period to the next.accounting cycleclosing entriespermanent accountspost-closing trial balance
- 23. Multiple ChoiceJournal entries used to prepare temporary accounts for a new fiscal period.closing entriespermanent accountspost-closing trial balancetemporary accounts
- 24. Multiple Choice
A trial balance is prepared after the closing entries are posted.
closing entriespermanent accountspost-closing trial balancetemporary account - 25. Multiple ChoiceThe series of accounting activities included in recording financial information for a fiscal period.accounting cyclepermanent accountstemporary accountspost-closing trial balance
- Answer choicesTagsAnswer choicesTags