Ch 8 Study Guide

Accounts used to accumulate information from one fiscal period to the next.

• accounting cycle
• closing entries
• permanent accounts
• post-closing trial balance
• temporary accounts

Accounts used to accumulate information until it is transferred to the owner’s capital account.

• accounting cycle
• closing entries
• permanent accounts
• post-closing trial balance
• temporary accounts

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

• accounting cycle
• closing entries
• permanent accounts
• post-closing trial balance
• temporary accounts

A trial balance prepared after the closing entries are posted.

• accounting cycle
• closing entries
• permanent accounts
• post-closing trial balance
• temporary accounts

The series of accounting activities included in recording financial information for a fiscal period.

• accounting cycle
• closing entries
• permanent accounts
• post-closing trial balance
• temporary accounts

Which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?

• Business Entity
• Accounting Period Cycle
• Going Concern
• Full Disclosure.

The ending account balances of permanent accounts for one fiscal period are

• The same as the prior period’s ending balance
• equal to the capital account balance
• all equal to zero
• the beginning account balances for the next fiscal period.

Which of the following accounts is a temporary account?

• Cash
• Accounts Payable
• Clyde Sullivan, Capital
• Rent Expense.

Which accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue?

• Business Entity
• Going Concern
• Matching Expenses with Revenue
• Full Disclosure.

When revenue is greater than total expenses, resulting in a net income, the Income Summary account has a

• debit balance
• credit balance
• normal debit balance
• normal credit balance.