Accounting - 10. Closing Entries

Accounting - 10. Closing Entries

Assessment

Quiz

Other

KG - University

Practice Problem

Medium

Used 117+ times

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18 questions

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1.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Revenue and expense accounts must be closed out because their balances apply to only one fiscal period.

True
False

2.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Closing entries transfer the net income or net loss to the withdrawals account.

True
False

3.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

To close a revenue account, debit it for the amount of its credit balance.

True
False

4.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

When expense accounts are closed, the Income Summary account is credited.

True
False

5.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Before closing entries are journalized and posted, the Income Summary account in the general ledger has a normal credit balance.

True
False

6.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

The Income Summary account is a simple income statement in the ledger.

True
False

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

After the closing entries have been posted, the balance in the capital account reflects the net income or net loss and the withdrawals for the period.

True
False

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