Accounting I Final Test - Part 2

A transaction recorded in a journal is considered a permanent record

• True

• False

Adjusting entries and closing entries are not posted to the general ledger

• True

• False

Answer explanation

Both adjusting and closing entries must be posted to make sure the account balances are up to date!

What type of account is the drawing account?

• Permanent

• Temporary

What type of account is Income Summary?

• Permanent

• Temporary

What type of account is Cash?

• Permanent

• Temporary

Which financial statement reports information for a specific date?

• Balance Sheet

• Income Statement

Which financial statement reports information for a period of time?

• Balance Sheet

• Income Statement

Normal balance of Accounts Receivable

• Debit

• Credit

Normal balance of Capital account

• Debit

• Credit

Normal balance of Petty Cash

• Debit

• Credit