Accounting Chapter 8

What is the account balance of a temporary account at the beginning of a fiscal period?

• The balance at the end of the month
• 0

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

• True
• False

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

• True
• False

Which one of these is a PERMANENT account?

• Rent Expense
• Sales
• Owner's Capital
• Income Summary

Which one is a TEMPORARY Account?

• Cash
• Accounts Payable
• Owner's Drawing
• Accounts Receivable 

In what order are accounts closed?

• Revenue, Expense, Income Summary, Drawing
• Income Summary, Drawing, Revenue, Expense
• Drawing, Income Summary, Expense, Revenue
• Expense, Income Summary, Capital, Drawing

An account that appears in the owner’s equity section of the company’s chart of accounts; used only for closing the accounts of the company is a(n)

• permanent account

• temporary capital account

• balanced capital account

• income summary account

The income summary account is used only for closing the accounts of the company

• True

• False

The drawing account is a permanent account.

• True
• False