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WorksheetsBring Your "A" Game- #1- Ch 10
Total questions: 10
Worksheet time: 10mins
Name
Class
Date
1.
What are closing entries?
a)
journal entries made to close, or reduce to zero the balances in the permanent accounts and to transfer net income or loss to the capital account
b)
journal entries that have 2 or more debits or credits
c)
journal entries made to close, or reduce to zero, the balances in the temporary accounts and to transfer net income to the capital account
d)
journal entries that correct an incorrect journal entry that has already been posted
2.
Which of the following are temporary accounts?
a)
assets, liabilities and owner's equity
b)
revenue, expenses, and withdrawals
c)
revenue, expenses, and owner's capital
d)
assets, revenue, and expenses
3.
The Income Summary account is in the owner's equity section of the general ledger.
a)
true
b)
false
4.
Income Summary is a permanent account.
a)
true
b)
false
5.
What is the normal balance of income summary?
a)
debit
b)
credit
c)
it doesn't have one
6.
A journal entry that has 2 or more debits or credits is known as a
a)
correcting entry
b)
closing entry
c)
compound entry
d)
adjusting entry
7.
What is the first closing entry that is prepared?
a)
close withdrawals to capital
b)
close income summary to capital
c)
close expenses to income summary
d)
close revenue to income summary
8.
The income summary account is like a mini income statement in the ledger because you can quickly see if the company made or lost money.
a)
true
b)
false
9.
Advertising expense has a $4,000 debit balance. What is the entry needed to close it?
a)
Dr. Income Summary $4,000 and Cr. Advertising Expense $4,000
b)
Dr. Advertising Expense $4,000 and Cr. Income Summary $4,000
c)
Dr. Capital $4,000 and Cr. Advertising Expense $4,000
d)
Dr. Advertising Expense $4,000 and Cr. Owner's Withdrawals $4,000
10.
Income summary starts with a zero balance and after the closing entries are done, the balance in the account goes back down to zero.
a)
true
b)
false
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