Accounting Final Exam Review Chapter 10

Which of the following accounts is not closed at the end of the accounting period?

• Fees

• Income Summary

• Maintenance Expense

• Klaus Braun, Capital

Accounts that start each new accounting period with zero balances are ____.

• permanent accounts

• asset accounts

• liability accounts

• temporary accounts

If a business has a net income for the period, the journal entry to close the balance of the Income Summary account is ____.

• a debit to owner's capital, a credit to Income Summary

• a debit to Fees, a credit to owner's capital

• a debit to Income Summary, a credit to owner's capital

• a debit to owner's capital, a credit to Fees

Which of the following statements is true?

• The Income Summary account is located in the owner's equity section of the general ledger.

• The Income Summary account has a normal debit balance.

• The Income Summary account is a permanent account.

• The Income Summary account is used throughout the accounting period.

Transferring the expense account balances to the Income Summary account is the ____.

• first closing entry

• second closing entry

• third closing entry

• fourth closing entry

The balance of the revenue account is transferred to the ____.

• debit side of the Cash in Bank account

• credit side of the owner's capital account

• credit side of the Income Summary account

• debit side of the owner's withdrawals account

Closing entries are used to transfer the net income or net loss for the accounting period to the ____.

• Cash in the Bank Account

• Expense Accounts

• Revenue Accounts

• capital account