ACC 2.03 Quiz #1

The normal balance of assets is _____ and the normal balance of liabilities and owner's equity is ______.

• debit; credit

• credit ; debit

What is the normal balance of expenses and drawing?

• Credit

• Debit

What is the normal balance of sales and capital?

• Credit

• Debit

Closing entries refers to setting account to...

• Open

• Zero

Temporary accounts begin each fiscal period (month) with zero balances.

• True

• False

Permanent accounts never close.

• True

• False

All of the following are considered temporary accounts EXCEPT for:

• Expenses

• Assets

• Drawing

• Income Summary

What is the normal balance?

• How an account is decreased

• How an account is increased

Permanent accounts include all other accounts that are not temporary.

• True

• False

Which of the following is the correct order for how to record closing entries?

• Sales, Income Summary, Expenses, Drawing

• Income Summary, Sales, Expenses, Drawing

• Sales, Expenses, Income Summary, Drawing