Closing Entries - A2

What is the source of information for completing the closing entries?

• Unadjusted trial balance

• Income Statement

• Adjusted trial balance

• Work sheet

Into which account is the amount of net income or net loss closed?

• Share capital

• Retained Earnings

• Cash

• Dividends

Temporary accounts include assets, expenses, and dividends.

• True

• False

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

• True
• False

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

• True
• False

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

• assets, liabilities, and stockholders' equity

• revenue, expenses, and dividends

• all accounts in the chart of accts

• all temporary accts

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

• debit Revenues, credit Income Summary

• debit Retained earnings; credit Income Summary

• debit Retained earnings; credit Revenues

• debit Income Summary; credit Retained earnings

The last step in the accounting cycle is to 

• record transactions in a journal
• prepare a work sheet
• journalize and post closing entries
• prepare a post-closing trial balance

Income Summary is a(n) 

• asset account
• liability account
• temporary account
• permanent account

Temporary accounts begin each new fiscal period with a 

• debit balance
• credit balance
• zero balance
• balance equal to the net income