Ch.10 Completing the Accounting Cycle for a Sole Proprietorship

____ is written in the Description column of the general journal to explain the entries that close out the balance in the temporary capital accounts.

• compound entry

• " Closing Entries"

• Income Summary

• closing entries

A(n) ______ has two or more debits or credits in the general journal.

• temporary capital accounts

• zero balances

• compound entry

• Income Summary

The only accounts and balances listed on the post-closing trial balance are the ______ of the business.

• permanent accounts

• post-closing trial balance

• closing entries

• zero balances

The _____ are used to record transaction involving revenue, expenses, and withdrawals.

• compound entry

• temporary capital accounts

• permanent accounts

• "Closing Entries"

The general ledger account used to accumulate and summarize the revenue and expenses for the period is ______.

• zero balances

• closing entries

• post-closing trial balance

• Income Summary

The trial balance prepared after the closing entries have been posted is the ______.

• closing entries

• post-closing trial balance

• temporary capital accounts

• compound entry

The temporary capital accounts are not listed on the post-closing trial balances because they have _____.

• zero balances

• Income Summary

• closing entries

• compound entry

Journal entries that close out the balances in the temporary capital accounts and transfer net income or net loss for the period to the capital accounts are called ______.

• closing entries

• "Closing Entries"

• Income Summary

• zero balances

The last step in the accounting cycle is to journalize and post closing entries.

• False

• True

Before the closing entries are journalized and posted, there is only one accounts in the general ledger that shows the revenue and expenses for the fiscal period.

• False

• True