Accounting Quiz

Accounts used to accumulate information from one fiscal period to the next are known as:

• Accounting cycle

• Closing entries

• Permanent accounts

• Post-closing trial balance

• Temporary accounts

Journal entries used to prepare temporary accounts for a new fiscal period are known as:

• Accounting cycle

• Closing entries

• Permanent accounts

• Post-closing trial balance

• Temporary accounts

A trial balance prepared after the closing entries are posted is called:

• 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 is known as:

• Accounting cycle

• Closing entries

• Permanent accounts

• Post-closing trial balance

• Temporary accounts

Which accounts are affected by the closing entry for Sales?

• Dr. Sales Cr. Income Summary

• Dr. Income Summary Cr. Expense accounts

• Dr. Capital Cr. Income Summary

• Dr. Capital Cr. Drawing

Which accounts are affected by the closing entry for all expense accounts?

• Dr. Sales Cr. Income Summary

• Dr. Income Summary Cr. Expense accounts

• Dr. Capital Cr. Income Summary

• Dr. Capital Cr. Drawing

Which accounts are affected by the closing entry for income summary with a net loss?

• Dr. Sales Cr. Income Summary

• Dr. Income Summary Cr. Expense accounts

• Dr. Capital Cr. Income Summary

• Dr. Capital Cr. Drawing

Which accounts are affected by the closing entry for owner’s drawing account?

• Dr. Sales Cr. Income Summary

• Dr. Income Summary Cr. Expense accounts

• Dr. Capital Cr. Income Summary

• Dr. Capital Cr. Drawing

Which accounting concept applies when a worksheet 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