Accounting Vocabulary
Closing Entries T/F
Closing Entries M/C
HodgePodge 1
HodgePodge 2
100
Accounts that start an accounting period with zero balances are called this.
What is temporary capital accounts?
100
Revenue and expense accounts must be closed out because their balances apply to only one accounting period.
What is true?
100
The following account is not closed at the end of the accounting period...(A)Fees, (B)Income Summary (C)Maintenance Expense, (D)Klaus Braun, Capital.
What is Klaus Braun, Capital?
100
These are made to close out or reduce to zero the balance of certain general ledger accounts.
What is closing entries?
100
True or false...if a business reports a net loss for the period, the journal entry to close the Income Summary account would be a debit to capital and a credit to Income Summary.
What is true?
200
This is a journal entry with two or more debits or two or more credits.
What is a compound entry?
200
Closing entries transfer the net income or net loss to the withdrawals account.
What is false.
200
Transferring the expense account balances to the Income Summary account is the (A)first closign entry (B) second closing entry (C)third closing entry (D)fourth closing entry.
What is second closing entry?
200
True or False...the Income Summary account is a simple income statement in the ledger.
What is true?
200
True or false...the last step in the accounting cycle is the preparation of the post-closing trial balance.
What is true?
300
This is a general ledger account used to accumulate and summarize the revenue and expenses for a period.
What is Income Summary account?
300
To close a revenue account, debit it for the amount of its credit balance.
What is true?
300
Accounts that start each new accounting period with zero balances are (A) permanent accounts, (B)asset accounts, (C)liability accounts (D)temporary accounts.
What are temporary accounts?
300
True or false...after the closing entries have been posted, the balance in the capital account reflects the net incme or net loss and the withdrawals for the period.
What is true?
300
True or false...to close the withdrawals account, the amount of its balance is debited to the capital account and credited to the withdrawals account.
What is true?
400
This is prepared to prove that debits in the ledger accounts are equal to the credits after closing entries have been posted.
What is post-closing trial balance?
400
When expense accounts are closed, the Income Summary account is credited.
What is true?
400
Which of the following statements is true? (A) The Income Summary account is located in the owner's equity section of the general leger. (B) The Income Summary account has a normal debit balance. (C) The Income Summary account is a permanent account. (D) The Income Summary account is used throughout the accounting period.
What is (A) The Income Summary account is located in the owner's equity section of the general ledger.
400
True or false...the Income Summary account is located in the owner's equity section of the general ledger.
What is true?
400
If a business has a net income for the period, the journal entry to close the balance of the Income Summary account is (A) a debit to owner's capital, a credit to Income Summary; (B) a debit to Fees, a credit to owner's capital; (C) a debit to Income Summary, a credit to owner's capital; (D) a debit to owner's capital, a credit to Fees.
What is (C) a debit to Income Summary, a credit to owner's capital?
500
Only this and their balances are listed on the post-closing trial balance.
What is permanent accounts?
500
Before closing entries are journalized and posted, the Income Summary account in the general ledger has a normal credit balance.
What is false?
500
The balance of the revenue account is transferred to the (A) debit side of the Cash in Bank account, (B) credit side of the owner's caiptal account, (C) credit side of the Income Summary account, (D) debit side of the owner's withdrawals account.
What is (C) credit side of the Income Summary account?
500
True or false...closing the revenue account is the second closing entry.
What is false?
500
Closing entries are used to transfer the net income or net loss for the account period to the (A) Cash in bank account, (B) expense accounts, (C) revenue account, (D) capital account.
What is (D) capital?
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