Recording Adjusting and Closing Entries - Chapter 7

Front

The capital account's new balance after all closing entries are posted is verified by checking it with the amount of capital shown on the balance sheet at the end of the fiscal period.

Back

False

Front

All accounts in a general ledger are listed on a post-closing trial balance.

Back

False

Front

Adjusting entries are recorded on the next journal page following the page on which the last daily transactions for the month are recorded.

Back

True

Front

Permanent accounts are also referred to as temporary accounts.

Back

False

Front

Preparing a work sheet at the end of each fiscal period to summarize the general ledger information needed to prepare financial statements is an application of the accounting concept Accounting Period Cycle.

Back

True

Front

The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.

Back

True

Front

At the end of a fiscal period, the balances of temporary accounts are summarized and transferred to the owner's capital account.

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 new fiscal period are closing entries.

Back

True

Front

To close a temporary account, an amount equal to its balance is recorded in the account on the side opposite to its balance.

Back

True