Chapter 8 Closing Entries and Post-Closing Trial Balance

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Is the drawing account a permanent account?

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False

Front

Do temporary accounts start each fiscal period with a zero balance?

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True

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

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False

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The accounts that appear on the post-closing trial balance are: assets, liabilities, and owner’s capital.

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assets, liabilities, and owner’s capital.

Front

The last step in the accounting cycle is to

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prepare a post-closing trial balance.

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Income Summary is a(n)

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temporary account.

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When the total expenses are greater than the total revenues,

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the Income Summary account has a debit balance.

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

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permanent accounts.

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After the closing entries are posted, the owner’s capital account balance should be the same as shown

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on the balance sheet for the fiscal period.

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After closing entries are posted, the balance in the owner’s drawing account should be

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zero.