Chapter 9 Test: Adjusting and Closing Entries

Which of the following is a temporary account?

• Income Summary

• A/R

• A/P

• Petty Cash

When you close expenses, the journal entry will have expenses in the ________column

• Debit

• Credit

When you close Income Summary and there was a Net Income, Income Summary will be closed with the __________ column

• Credit

• Debit

Which of the following is NOT an account that is closed using closing entries?

• Revenues

• Expenses

• Capital

• Drawings

If you are completing an adjusting entry for Prepaid Insurance, which account will be debited in the journal entry?

• Prepaid Insurance Expense

• Insurance Expenses

• Insurance Expense

• Prepaid Insurance

If you started the month with 200 dollars worth of supplies, and ended the month with $50 dollars in supplies, what would your adjusting entry be for?

• 200

• 50

• 150

• 750

After you complete closing entries, what is the next step in the accounting process?

• Post the adjusting and closing entries to the ledger

• Complete the work sheet

• Prepare the Balance Sheet

• Prepare the Post-Closing Trial Balance

Which of the following is the correct format for closing Sales (Revenue)?

• Debit Income Summary Credit Capital

• Debit Income Summary Credit Sales

• Debit A/P Credit Sales

• Debit Sales Credit Income Summary

Where do you find how much the drawings are before closing drawings to the capital account?

• Work Sheet

• Income Statement

• Balance Sheet

• Post-Closing Trial Balance

When completing a post-closing trial balance, which of the following accounts WILL be on the statement?

• Revenues

• Expenses

• Drawings

• Cash