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WorksheetsAccounting 1 Chapter 8
Total questions: 14
Worksheet time: 7mins
Name
Class
Date
1.
Preparing a work sheet at the end of each fiscal period to summarize the general ledger needed to prepare financial statements is an application of the accounting concept Accounting Period Cycle.
a)
True
b)
False
2.
A source document is prepared for adjusting entries.
a)
True
b)
False
3.
The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period
a)
True
b)
False
4.
At the end of a fiscal period, the balances of temporary accounts are summarized and transferred to the owner’s capital account.
a)
True
b)
False
5.
Temporary accounts must start each fiscal period with a zero balance.
a)
True
b)
False
6.
To close a temporary account, an amount equal to its balance is recorded in the account on the side opposite to its balance.
a)
True
b)
False
7.
Journal entries used to prepare temporary accounts for a new fiscal period are closing entries.
a)
True
b)
False
8.
The income summary account has a normal debit balance.
a)
True
b)
False
9.
The balances of the expense accounts must be reduced to zero to prepare the accounts for the next fiscal period.
a)
True
b)
False
10.
The drawing account is a permanent account.
a)
True
b)
False
11.
The capital account’s new balance after all closing entries are posted is verified by it with the amount of capital shown on the balance sheet at the end of the fiscal period.
a)
True
b)
False
12.
A post-closing trial balance verifies the equality of debits and credits in a general ledger the closing entries are posted.
a)
True
b)
False
13.
The right side of a T account is the
a)
a. debit side.
b)
b. credit side.
c)
c. normal balance side.
d)
d. equity side.
14.
The formula for calculating net income is: total revenue minus total expenses equals net income.
a)
True
b)
False
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