True/False
To close an expense account. Debit it for the amount of its credit balance
False
A ________ has two or more debits or credits in the general journal.
Compound Entry
The first step in the closing process
Close Revenue Accounts
The information for closing entries is found in the
a. Worksheet
b. income statement
c. General ledger
d. Balance sheet
a. worksheet
What is the name of the pet grooming business in the examples
Kits and Pups grooming
When the revenue account is closed, Income summary is credited
True
The only accounts and balances listed on the post closing trial balances are__________
Permanent Accounts
The second step in the closing process
Close expense accounts
Which account would appear in the post-closing trial balance?
a. L. Moore, capital
b. Service revenue
c. Rent Expense
d. L. Moore, Withdrawals
a. L. Moore, capital
What is the name of the car wash in the book
hot suds car wash
Closing entries are made for all temporary accounts and permanent accounts
False
Journal entries that close out the Balances in the temporary accounts and transfer net income/loss for the period to the capital account are called _______________.
Closing Entries
The third step in the closing process
Close income summary (net income/loss) into capital
The first step in the closing process is
a. Close expenses
b. Close withdrawals
c. Close income summary
d. Close revenue
d. Close revenue
How many steps are in the Accounting cycle
9
A separate closing entry is needed for each expense account
False: All expenses can be closed in 1 entry with a compound entry
Daily Double******
The Account used to summarize revenue and expenses for the period is ________
Income Summary
The fourth step of the closing process
Close the withdrawal account into capital
Temporary capital accounts start each fiscal (accounting) period with?
a. credit balances
b. debit balances
c. Zero balances
c. Zero balances
what is the accounting equation
Assets = Liabilities + Owners Equity
Closing the withdrawals account into the capital account is the last closing entry to be made
True
The document prepared after the closing entries have been posted is the ____________ and it contains only permanent account balances
Post-closing trial balance
What are the names of the 3 Temporary Accounts to close
Revenue
Expenses
Drawings/withdrawals
of the following accounts a closing entry would be required for
a. Accounts receivable
b. Rent Expense
c. Cash in bank
d. Equipment
b. Rent Expense
List the 5 types of accounting documents
Journals
Ledgers
Trial Balance
Worksheet
Financial Statements
Closing Entries