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ACC 106: Closing

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

What new account is used only during the closing period? (ie, it both opens and closes during the closing process)

a)

Depreciation Expense

b)

Capital

c)

Income Summary

d)

Accumulated Depreciation

2.

What is the journal entry required to close expenses?

a)

Debit Expenses, Credit Income Summary

b)

Debit Income Summary, Credit Expenses

c)

Debit Expenses, Credit Capital

d)

Debit Capital, Credit Expenses

3.

What is the journal entry required to close revenues?

a)

Debit Revenues, Credit Income Summary

b)

Debit Revenues, Credit Capital

c)

Debit Capital, Credit Revenues

d)

Debit Income Summary, Credit Revenues

4.

What is the journal entry required to close Capital?

a)

Debit Capital, Credit Income Summary

b)

Debit Income Summary, Credit Capital

c)

Debit Assets, Credit Capital

d)

You do not close the Capital Account

5.

What journal entry is required to close Income Summary if Revenues are greater than Expenses (Net Profit)?

a)

Debit Income Summary, Credit Capital

b)

You do not close Income Summary

c)

Debit Capital, Credit Income Summary

d)

Debit Income Summary, Credit Assets

6.

What journal entry is required to close Income Summary if Revenues are less than Expenses (Net Loss)?

a)

You do not close Income Summary

b)

Debit Capital, Credit Income Summary

c)

Debit Assets, Credit Income Summary

d)

Debit Income Summary, Credit Capital

7.

What type of accounts carry the balance to the next period?

a)

Permanent Accounts

b)

Temporary Accounts

8.

What type of accounts cannot carry the balance to the next period?

a)

Permanent Accounts

b)

Temporary Accounts

9.

What are the temporary accounts not including income summary?

a)

Revenues, Expenses, Drawings

b)

Assets, Liabilities, Capital

c)

Revenues, Liabilities, Capital

d)

Expenses, Drawings, Capital

10.

What is the required journal entry to close Drawings?

a)

Debit Drawings, Credit Capital

b)

Debit Capital, Credit Drawings

c)

Debit Drawings, Credit Income Summary

d)

Debit Income Summary, Credit Drawings

11.

What accounts are included in the Post Closing Trial Balance?

a)

Only Temporary Accounts

b)

Only Permanent Accounts

c)

All Accounts

d)

Only Equity Accounts