REVIEW ACCOUNTING II SEMESTER 1 FINAL 2019

Which of the following accounts is a temporary account?

• cash
• accounts payable
• revenue
• capital

Income Summary is a temporary account.

• True
• False

Which account should be closed first?

• Revenue
• Expenses
• Income Summary
• Withdrawals

The fourth step is to close which of the following accounts?

• capital
• withdrawals
• revenue
• expenses

Another word for permanent is "nominal"?

• True
• False

Which of the following accounts should be set to zero at the end of an accounting period?

• expenses
• capital
• accounts payable
• equipment

Which financial statement should be prepared first?

• balance sheet
• income statement
• statement of owner's equity

At the end of a fiscal period, the balances of temporary accounts are summarized and transferred to the owner’s capital account.

• True
• False

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

• True
• False

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

• True
• False