Accounting - Chapter 8

Preparing a Post Closing Trial Balance at the end of fiscal period is an application of Accounting Period Cycle

• true

• false

A source document is prepared for closing entries

• true

• false

The ending account balances of permanent accounts are the beginning balances for the next

• true

• false

Temporary accounts must start each fiscal period with a zero balance

• true

• false

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

• true

• false

The income summary account has normal debit balance

• true

• false

The balances of expense accounts must be reduced to zero to prepare the accounts for the next fiscal period.

• true

• false

The drawing account is a permanent account

• true

• false

A post-closing trial balance verifies the equality of debits and credits in a general ledger

• true

• false

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

• Temporary accounts

• Adjusting entries

• Permanent accounts

• Blank accounts