Accounting 1 Chapter 8

Front

Which of the following is FALSE about closing journal entries?
Closing entries are required for all permanent accounts,
Closing entries are required for all temporary accounts,
The closing entry will reduce the account balance to zero

Back

Closing entries are required for all permanent accounts

Front

Permanent accounts with (non-zero) balances go on the post-closing trial balance.

Back

True

Front

Cash

Back

Appears on the Post-Closing Trial Balance

Front

Petty Cash

Back

Appears on the Post-Closing Trial Balance

Front

Supplies Expense

Back

Requires a closing journal entry

Front

Cash Short and Over

Back

Requires a closing journal entry

Front

Insurance Expense

Back

Requires a closing journal entry

Front

Accounts Receivable

Back

Appears on the Post-Closing Trial Balance

Front

Prepaid Insurance

Back

Appears on the Post-Closing Trial Balance

Front

Income Summary

Back

Requires a closing journal entry