Accounting - Chapter 8

Front

Preparing a Post Closing Trial Balance at the end of fiscal period is an application of Accounting Period Cycle

Back

true

Front

A source document is prepared for closing entries

Back

false

Front

The ending account balances of permanent accounts are the beginning balances for the next

Back

true

Front

Temporary accounts must start each fiscal period with a zero balance

Back

true

Front

Journal entries used to prepare temporary accounts for a fiscal period are closing entries

Back

true

Front

The income summary account has normal debit balance

Back

false

Front

The balances of expense accounts must be reduced to zero to prepare the accounts for the next fiscal period.

Back

true

Front

The drawing account is a permanent account

Back

false

Front

A post-closing trial balance verifies the equality of debits and credits in a general ledger

Back

true

Front

Accounts used to accumulate information from one fiscal period to the next are ___.

Back

Permanent accounts