Accounting 1 Semester Exam

Journal entries used to prepare temporary accounts for a new fiscal period.

• closing entries
• adjusting entries
• balance entries
• none of these

Transferring information from a journal entry to a ledger account.

• posting
• adjusting
• closing
• all of these

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

• temporary accounts
• permanent accounts
• adjusting accounts
• none of these

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

• balance sheet
• income statement
• work sheet
• post-closing trial balance

A list of accounts used by a business.

• Chart of accounts
• closing entries
• adjusting accounts
• journal

An increase in owner's equity resulting from the operation of a business.

• revenue
• expenses
• liabiltiies
• assets

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

• adjusting entries
• closing entries
• working entries
• none of these

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

• True
• False

The journal entry to close Sales is

• debit Income Summary, credit Sales

• debit Sales, credit Income Summary

• debit Income Summary, credit owner's capital account

• debit owner's capital account, credit Income Summary

The journal entry to close the expense accounts is

• debit all expenses, credit owner's capital account

• debit Income Summary for the total expenses, credit each expense account

• debit each expense account, credit Income Summary for the total expenses

• debit owner's capital account, credit all expenses