Accounting I- Chapter 8
After the closing entries are posted, the owner's capital account balances should be the same as shown (A) on the balance sheet for the fiscal period (B) in the work sheet's Balance Sheet Debit column (C) in the work sheet's Balance Sheet Credit column (D) in the work sheet's Income Statement Debit column
A
The accounts listed on a post-closing trial balance are (A) general ledger accounts with balances after the closing entries are posted (B) all general ledger accounts (C) those that have no balances after adjusting and closing entries (D) those that appear in the work sheet's Trial Balance columns
A
Post-Closing trial balance
A trial balance prepared after the closing entries are posted
Permanent Accounts
Accounts used to accumulate information from one fiscal period to the next
Temporary Accounts
Accounts used to accumulate information until it is transferred to the owner's capital account
Information needed for recording the closing entries is obtained from the (A) general ledger accounts' Debit Balance columns (B) work sheet's Income Statement and Balance Sheet columns (C) balance sheet (D) income statement
B
When revenue is greater than total expenses, resulting in a net income, the Income Summary account has a (A) debit balance (B) credit balance (C) normal debit balance (D) normal credit balance
B
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? (A) Business Entity (B) Accounting Period Cycle (C) Going Concern (D) Full Disclosure
B
After the closing entries are posted, the Sales account balance should be (A) equal to the Sales account balance on the unadjusted trial balance (B) equal to the Sales account balance on the adjusted trial balance (C) zero (D) the same as the beginning balance for that same fiscal period
C
Income Summary is (A) an asset account (B) a liability account (C) a temporary account (D) a permanent account
C
Which accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue? (A) Business Entity (B) Going Concern (C) Matching Expenses with Revenue (D) Full Disclosure
C
The ending account balances of permanent accounts for one fiscal period are (A) the same as the prior period's ending balance (B) equal to the capital account balance (C) all equal to zero (D) the beginning account balances for the next fiscal period
D
Which of the following accounts is a temporary account? (A) Cash (B) Accounts Payable (C) Clyde Sullivan, Capital (D) Rent Expense
D
Closing Entries
Journal entries used to prepare temporary accounts for a new fiscal period
Accounting cycle
The series of accounting activities included in recording financial information for a fiscal period