Chapter 10 Closing Entries

Chapter 10 Closing Entries

By Susana Bernhardt

Multiple Choice

What type of account is cash in bank?

• permanent

• temporary

Multiple Choice

What type of account is office equipment?

• permanent

• temporary

Multiple Choice

What type of account is repair fees?

• permanent

• temporary

Multiple Choice

What type of account is advertising expense?

• permanent

• temporary

Multiple Choice

What type of account is JD Greenleaf Capital?

• permanent

• temporary

Multiple Choice

What step of the accounting cycle are the closing entries prepared?

• step 6

• step 7

• step 8

Multiple Choice

Closing entries transfer temporary account balances to the

• owner's capital account

• trial balance

• balance sheet

Multiple Choice

Journal entries made to close balances of temporary accounts and to transfer the net income or net loss to the capital account are called

• journal entries

• closing entries

• ledger entries

Multiple Choice

After closing entries have been journalized and posted, you will prepare a

• balance sheet

• income statement

• trial balance

Multiple Choice

The general ledger account used to summarize the expenses and revenues for the period is called

• trial balance

• income summary account

Multiple Choice

Which of the following would be used when performing closing entries?

• revenues, expenses and withdrawals

• assets and liabilities

Multiple Choice

A list of permanent general ledger account balances prepared after the closing entries are posted is called

• Post-Closing Trial Balance

• Balance Sheet

• Income Statement

Multiple Choice

Why are all temporary accounts reset to zero?

• to analyze the revenues and the expenses for the period

• because they do not affect the balance sheet