Chapter 8 Accounting T/F
At the end of a fiscal period, the balances of permanent accounts are summarized and transferred to the owner's capital
False
Permanent accounts are used to accumulate information until it is transferred to the owner's capital account
False
Temporary accounts include: assets, expenses, and the owner's drawing account
False
The Income Summary account has a normal debit balance
False
The balances of the liability accounts must be reduced to zero to prepare the accounts for the next period
False
The drawing account is a permanent account
False
A post-closing trial balance verifies the equality of debits and credits in a general ledger after closing entries
True
Ending account balances of permanent accounts for one fiscal period are the beginning account balances for the nxt perid
True
Journal entries used to prepare temporary accounts for a new fiscal period are closing entries
True
Temporary accounts are called nominal accounts
True
Temporary accounts must start each fiscal period with a zero balance
True
The capital account's new balance after all closing entries are posted is verified by comparing it to the balance sheet
True
The series of accounting activities included in recording financial information for a fiscal period is called acct cycle
True
To close a temporary account, an amount equal to its balance is recorded in the account on the side opposite its balance
True