Accounting-Adj. & Closing Entries

Journal entries recorded to update general ledger accounts at the end of a fiscal period are called

• recorded entries
• closing entries
• adjusting entries
• updated entries

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

• True
• False

If the beginning balance of Supplies was $2,500.00 and the ending balance of Supplies is $1,750.00, what is the amount of the adjusting entry to Supplies Expense for the period?

• $750.00
• $500.00
• $250.00
• $1,750.00

If the balance in Prepaid Insurance is a debit of $2,400.00 and the value of insurance coverage remaining at the end of the period is $600.00, what entry should be made to adjust Insurance Expense and Prepaid Insurance?

• debit Prepaid Ins for $600.00 and credit Ins Exp for $600.00
• debit Insurance Exp for $600.00 and credit Prepaid Ins for $600.00.
• debit Insurance Exp for $1,800.00 and credit Prepaid Ins for $1,800.00.
• debit Prepaid Ins for $1,800.00 and credit Insurance Exp for $1,800.00.

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

• cumulative accounts
• permanent accounts
• carry-over accounts
• perennial accounts

The ending account balances of permanent accounts for one fiscal period are "zeroed out" for the next fiscal period.

• True
• False

Accounts used to accumulate information until it is transferred to the owner's capital account are called real accounts.

• True
• False

Nominal accounts are also known as temporary accounts.

• True
• False

Temporary accounts show changes in the owner's capital for a single fiscal period.

• True
• False

Temporary accounts begin a new fiscal period with the ending balance from the previous fiscal period.

• True
• False