Acct 1 - Chap 8

The accounts that appear on a Post Closing Trial Balance are....

• Temporary
• Permanent
• Zeroed Out
• All of the Chart of Accounts

Income summary is a _______________ account.

• Asset
• Liability
• Temporary
• Permanent

The journal entry to close Income Summary when there is a Net Income (the 3rd closing entry) is....

• debit Sales; credit Income Summary
• debit Capital, credit Income Summary
• debit Capital, credit Sales
• debit Income Summary, credit Capital

After the closing entries the new balance for the owner's Capital account should be....

• Zero
• The same as the Capital amount on the Balance Sheet
• The same as the Owner's Drawing account
• The same as owner's Capital from the Worksheet

The accounts whose balances carry over from one fiscal period to the next are...

• All Chart of Accounts
• Temporary Accounts
• Permanent Accounts
• Expense Accounts

The main steps of closing (in order) are...

• PCTB, Journalize Closing Entries, Post
• Post, PCTB, Close
• Journaize Closing Entries, Post, PCTB
• It does not matter the order

The normal balance side of the Income Summary account is...

• Debit

• Credit

• Niether

To close a temporary account, an amount equal to its balance is recorded in the side opposite its balance.

• True
• False

Closing entries are the journal transactions used to prepare permanent accounts for the next fiscal period.

• True
• False

The Post Closing Trial Balance verifies the equality of debits and credits in a general ledger after the closing entries are posted.

• True
• False