Accounting Quiz

What are accounts used to accumulate information from one fiscal period to the next called?

• Temporary accounts

• Nominal accounts

• Real accounts

• Capital accounts

What is another name for permanent accounts?

• Temporary accounts

• Real accounts

• Nominal accounts

• Capital accounts

What type of accounts are used to accumulate information until it is transferred to the owner’s capital account?

• Permanent accounts

• Real accounts

• Temporary accounts

• Capital accounts

Temporary accounts are also referred to as what?

• Permanent accounts

• Real accounts

• Nominal accounts

• Capital accounts

What are the journal entries used to prepare temporary accounts for a new fiscal period called?

• Opening entries

• Adjusting entries

• Closing entries

• Reversing entries

What must be done to the temporary account balances at the end of each fiscal period?

• They must be carried forward to the next period.

• They must be reduced to zero.

• They must be doubled.

• They must be reported to tax authorities.

What type of balance does the Income Summary account have when revenue is greater than total expenses?

• No balance

• Debit balance

• Credit balance

• Zero balance

What does the credit balance in the Income Summary account represent?

• Net loss

• Net income

• Total expenses

• Total revenue

When total expenses are greater than revenue, what type of balance does the Income Summary account have?

• Credit balance

• Debit balance

• No balance

• Zero balance

What does the debit balance in the Income Summary account indicate?

• Net income

• Total revenue

• Net loss

• Total expenses