accounting chapter8 multiple choice
Which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?
accounting period cycle
the accounts that appear on the post closing trial balance are
assets, liabilities, and owners capital
when revenue is greater than total expenses resulting in a net income the income summary account has a
credit balance
the journal entry to close income summary when there is a net income is
debit income summary credit owners capital
the accounts listed on a post closing trial balance are
general ledger accounts with balances after the closing entries are posted
Which accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue?
matching expenses with revenue
After the closing entries are posted, the owner's capital account balance should be the same as
on the balance sheet for the fiscal period
after the closing entries are posted, the owners capital account balance should be the same as shown
on the balance sheet for the fiscal period
accounts used to accumulate information from one fiscal period to the next are
permanent accounts
the last step in the accounting cycle is to
prepare a post closing trial balance
which of the following accounts is a temporary account
rent expense
income summary is a
temporary account
the ending account balances of permanent accounts for one fiscal period are
the beginning account balances for the next fiscal period
when the total expenses are greater than the total revenues
the income summary account has a debit balance
information needed for recording the closing entries is obtained from the
work sheets income statement and balance sheet columns
After the closing entries are posted, the Sales account balance should be
zero
after closing entries are posted, the balance in the owners drawing account should be
zero
temporary accounts begin each new fiscal period with a
zero balance
