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Closing Process

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

Accounts that are closed at the end of the period

a)

Permanent Accounts

b)

Temporary Accounts

c)

Temporary and Permanent Accounts

d)

Permitted Accounts

2.

What step of the closing process are the closing process?

a)

6th

b)

7th

c)

8th

d)

5th

3.

The purpose of the closing entry is to....

a)

Update the capital account

b)

Prepare the temporary accounts for the next accounting period

c)

Both answers

d)

None of the answers

4.

This account is used during the closing process to help close the revenue and expenses account...

a)

Income Account

b)

Capital Account

c)

Income summary

d)

None of the answers

5.

The first account that is closed during the closing process is......

a)

Withdrawal account

b)

Capital account

c)

Expense account

d)

Revenue account

6.

The withdrawal account is closed against....

a)

The revenue account

b)

The capital account

c)

Withdrawal account

7.

If a business has a net loss, the income summary will have....

a)

Debit balance

b)

Credit balance

c)

It depends

8.

The closing process includes a total of ....... entries

a)

5

b)

2

c)

3

d)

4

9.

After completing the closing process, the following accounts must have a zero balance

a)

Revenues
Capital

Withdrawals

b)

Expenses

Withdrawal

Revenue

c)

Expenses

Revenue

Capital

d)

Capital

Revenue

Withdrawals

10.

The income summary account

a)

Is used only at the end of the accounting period

b)

Does not have a normal balance

c)

Its balance before and after the closing is zero

d)

Included in the Post Closing Trial Balance