Accounting- 8-2: Closing Entries

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

• True
• False

Temporary accounts must start each fiscal period with a zero balance.

• True
• False

Temporary accounts include the following:

• Revenue (Sales)
• Expenses
• Income Summary
• All of These

Journal entries used to prepare temporary accounts for the new period are adjusting entries.

• True
• False

All accounts in the general ledger/journal/worksheet are listed in a post-closing trial balance.

• True
• False

The Income Summary account must be reduced to zero to get ready for the next fiscal period.

• True
• False

Permanent accounts include the following:

• Assets
• Liabilities
• Owner's Equity
• All of These

Temporary accounts begin each new fiscal period with a ________________.

• Zero Balance
• Debit Balance
• Credit Balance
• Income Summary Balance

Information needed for closing entries is found in the  ________________ column on the worksheet. 

• Income Statement & Balance Sheet
• Trial Balance
• Adjustments
• None of These

The journal entry to close the revenue accounts is ________________.

• Debit Sales, Credit Income Summary
• Debit Income Summary, Credit Sales
• Debit Sales, Credit Capital
• None of These