Ch 10 Accounting Review

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

• Income Summary

• Closing Entries

• Owner's Equity

• Withdrawal

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

• permanent accounts

• temporary accounts

• expense accounts

• revenue accounts

The ______ are used to record transactions involving revenue, expenses, and withdrawals.

• capital accounts

• permanent accounts

• temporary accounts

• liability accounts

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

• Capital account

• Net income account

• Income Summary account

• Balance account

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

• income statement

• post-closing trial balance

• trial balance

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

• income summaries

• capital entries

• post-closing entries

• closing entries

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

• revenue account

• withdrawals account

• capital account

• Cash in Bank account

Of the following accounts, a closing entry would be required for

• Accounts Receivable

• Rent Expense

• Cash in Bank

• Equipment

To close the withdrawals account, the amount of its balance is debited to the

• Income Summary account

• withdrawals account

• Cash in Bank account

• capital account

Which of the following is not a true statement?

• The Income Summary account is a permanent capital account

• The Income Summary account is used only at the end of the fiscal period

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

• The Income Summary account does not have a normal balance