Accounting Closing Procedures Quiz
Authored by SHIELA CAAB
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11th Grade
Used 4+ times
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9 questions
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1.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What is the purpose of the profit or loss summary account in closing entries?
To record the owner's personal withdrawals
To temporarily hold the total revenue and expenses
To calculate the net income for the company
To close the capital account at the end of the period
2.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
Which accounts are included in the post-closing trial balance?
Assets, liabilities, and capital
Revenue, expenses, and withdrawals
Temporary accounts and contra assets
Depreciation, prepaid expenses, and accrued revenue
3.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What is the main purpose of preparing closing entries?
To reset the revenue and expense accounts to zero
To adjust the balances of assets and liabilities
To calculate the total equity of the company
To prepare financial statements directly from the worksheet
4.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
Why are nominal accounts like revenue and expenses closed to zero in the closing entries?
To adjust the balances of assets and liabilities
To record the owner's personal withdrawals
To prepare them for the next accounting period
To calculate the net income for the company
5.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What is the purpose of the profit or loss summary account in closing entries?
To record the owner's personal withdrawals
To temporarily hold the total revenue and expenses
To calculate the net income for the company
To close the capital account at the end of the period
6.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What is the purpose of updating the ledger balances after closing entries?
To reset the revenue and expense accounts to zero
To prepare financial statements directly from the worksheet
To calculate the total equity of the company
To ensure the real accounts reflect the correct balances
7.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
When should the post-closing trial balance be prepared?
After all closing procedures have been completed
Before journalizing and posting adjusting entries
After preparing the financial statements
At the beginning of the accounting period
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