Accounting Chapter 10-Quiz

9 Questions
Accounting Chapter 10-quiz

Chapter 10 is a review of Closing Entries.

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Questions and Answers
  • 1. 
    Permanent accounts are found on the Balance Sheet section of the work sheet.
    • A. 

      True

    • B. 

      False

  • 2. 
    Income Summary has a normal debit balance.
    • A. 

      True

    • B. 

      False

  • 3. 
    Closing or clearning accounts refers to forcing temporary accounts to have zero balances.
    • A. 

      True

    • B. 

      False

  • 4. 
    The entry to close the Income Summary account is always the same:  Debit Income Summary and Credit Owner's Capital.
    • A. 

      True

    • B. 

      False

  • 5. 
    Income Summary is classified as a Revenue account.
    • A. 

      True

    • B. 

      False

  • 6. 
    Closing entries consists of 4 journal transactions.
    • A. 

      True

    • B. 

      False

  • 7. 
    No calculations are needed in the closing entry process as all numbers come from the worksheet.
    • A. 

      True

    • B. 

      False

  • 8. 
    Closing entries reduce the Capital balance to zero.
    • A. 

      True

    • B. 

      False

  • 9. 
    List the four steps to closing accounts at the end of the fiscal period.