Accounting Chapter 10 review
capital
(Multiple choice) Which account appear in the post closing trial balance?
The income summary account is a permanent capital account
(Multiple choice) Which of the following is NOT a true statement?
false
(T/F) A compound entry has at least two debits and two credits
true
(T/F) A credit balance in the income summary after revenue and expense and withdrawal have been closed indicate a net income
false
(T/F) Closing entries reduce the capital balance to zero
true
(T/F) Expense accounts are closed with credits to each account
true
(T/F) The entry to transfer net income to capital is a credit to capital and a debit to income summary
false
(T/F) The income summary account does not have an increase or decrease side
true
(T/F) The income summary account serves as a simple income statement in the ledger
false
(T/F) The income summary has a normal credit balance
true
(T/F) The temporary capital accounts starts each fiscal period with a zero balance
true
(T/F) The withdrawals account is closed with a credit to that account
rent expense
(multiple choice) Of the following accounts, a closing entry would be required for ?
8th step
In the accounting cycle, the closing process represents what step?
3rd step
In the closing process, the journal entry made to transfer the balance of the income summary to the capital account is which step?
capital
To close the withdrawal account, the amount balanced is debited to what?
credit to income summary and debit to capital
Which accounts close out the amount for the net loss for the period?
debit to income summary and credit to capital
Which accounts close out the amount of the net income for the period?
debit to income summary and credit to expense
Which accounts close out the balance of the expense account?
debit to revenue and credit to income summary
Which accounts close out the balance of the revenue account?
debit to capital and credit to income summary
if a business had a net loss for the period, the journal entry to close out the balance for the income summary account into the capital account would a debit to what and credit to what?
closing entries
journal entries that close out or reduce to zero the temporary capital accounts and transfer net income or net loss for the period
they have zero balance
temporary capital accounts are not listed on the post closing trial balance because why?
zero balance
temporary capital accounts start each period with what?
revenue account to income summary
the first step in the closing process is to transfer the balance of the what?
income summary
the general ledger account used to record transactions involving revenue, expenses, and withdrawals
permanent accounts
the only accounts and balances listed on the post closing trial balance
work sheet
the source of info for the closing entries is the what?
post closing trial balance
the trial balance that has been prepared after the closing entries have been posted
revenue, expenses, and withdrawals
what are the temporary capital accounts
compound entry
what has two or more debits and credits in the general journal
temporary capital accounts
what type of accounts are used to record transactions involving revenue, expenses, and withdrawals