After the adjusting entry for Supplies has been posted, Supplies Expense has an up-to-date balance, which is the

value of supplies used during the fiscal period

same as the beginning balance for Supplies

same as the ending balance for Supplies

value of supplies bought during the fiscal period

The journal entry to adjust Supplies is

debit Supplies Expense; credit Supplies

debit Supplies; credit Supplies Expense

debit Income Summary; credit Supplies

debit Supplies Expense; credit Income Summary

Temporary accounts begin each new fiscal period with a

balance equal to the net income

When the total expenses are greater than the total revenue,

the income summary account has a debit balance

the income summary account has a credit balance

The journal entry to close Income Summary when there is a net income is

debit Income Summary; credit owner's capital

debit Sales; credit Income Summary

debit owner's capital; credi Sales

debit owner's capital; credit Income Summary

After the closing entries are posted, the owner's capital account balance should be the same as

Shown on the balance sheet for the fiscal period

show in the worksheet's Income Statement Debit column

Shown in the worksheet's Balance Sheet Debit column

Show in the worksheet's Balance Sheet Credit column

The accounts that appear on the post-closing trial balance are

a. assets, liabilities, and owner’s capital.

b. revenue, expenses, and owner’s drawing.

c. all accounts in the chart of accounts.

The last step in the accounting cycle is to

d. prepare a post-closing trial balance.

a. record transactions in a journal.

c. journalize and post closing entries.

The last step in the accounting cycle is to

d. prepare a post-closing trial balance.

a. record transactions in a journal.

c. journalize and post closing entries.

When the total expenses are greater than the total revenues,

b. the Income Summary account has a debit balance.

a. the Income Summary account has a credit balance.

After the closing entries are posted, the owner’s capital account balance should be the same as shown

a. on the balance sheet for the fiscal period.

b. in the work sheet’s Balance Sheet Debit column.

c. in the work sheet’s Balance Sheet Credit column.

d. in the work sheet’s Income Statement Debit column.

Temporary accounts begin each new fiscal period with a

d. balance equal to the net income.

The journal entry to close Income Summary when there is a net income is

d. debit Income Summary; credit owner’s capital.

a. debit Sales; credit Income Summary.

b. debit owner’s capital; credit Income Summary.

c. debit owner’s capital; credit Sales.

ACCOUNTING CHAPTER 8 - CENGAGE

Authored by Chelsey Gilmore

Business

9th - 12th Grade

45 Questions

Used 41+ times

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About

This quiz focuses on the end-of-period accounting procedures, specifically the closing process and accounting cycle completion. The content is appropriate for high school students in grades 11-12 who are taking their first formal accounting course. Students need to understand the fundamental distinction between permanent accounts (assets, liabilities, owner's equity) and temporary accounts (revenues, expenses, drawing), as these concepts form the foundation for all closing procedures. The questions require mastery of the closing entry process, including the purpose and mechanics of transferring temporary account balances through the Income Summary account to owner's capital. Students must also comprehend the sequential steps of the accounting cycle, the preparation and purpose of post-closing trial balances, and how adjusting entries prepare accounts for accurate financial statement preparation. The quiz demands both conceptual understanding of why accounts are closed and procedural knowledge of the specific journal entries required to execute the closing process correctly. Created by Chelsey Gilmore, a Business teacher in the US who teaches grades 9-12. This comprehensive assessment serves as an excellent review tool for students completing their study of the accounting cycle's final steps. Teachers can deploy this quiz as a formative assessment before the chapter test to identify students who need additional support with closing entries, or use it as homework to reinforce classroom instruction on permanent versus temporary accounts. The mix of true/false and multiple-choice questions makes it ideal for warm-up activities at the beginning of class or as a review session before moving to the next chapter. The quiz effectively supports instruction by requiring students to apply their knowledge of closing procedures rather than simply memorizing definitions, preparing them for real-world accounting applications. This assessment aligns with business education standards that emphasize understanding accounting cycles, financial statement preparation, and the systematic recording and reporting of financial information.

Content View

Student View

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The capital account's new balance after all closing entries are posted is verified by checking it with the amount of capital shown on the balance sheet at the end of the fiscal period.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

All accounts in a general ledger are listed on a post-closing trial balance.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Adjusting entries are recorded on the next journal page following the page on which the last daily transactions for the month are recorded.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Permanent accounts are also referred to as temporary accounts.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Preparing a worksheet at the end of the fiscal period to summarize the general ledger information needed to prepare financial statements is an application of the accounting concept Accounting Period Cycle.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

True

False

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ACCOUNTING CHAPTER 8 - CENGAGE

The capital account's new balance after all closing entries are posted is verified by checking it with the amount of capital shown on the balance sheet at the end of the fiscal period.

All accounts in a general ledger are listed on a post-closing trial balance.

Adjusting entries are recorded on the next journal page following the page on which the last daily transactions for the month are recorded.

Permanent accounts are also referred to as temporary accounts.

Preparing a worksheet at the end of the fiscal period to summarize the general ledger information needed to prepare financial statements is an application of the accounting concept Accounting Period Cycle.

The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.

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

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

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

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

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