Accounting Chapter 10-quiz

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Accounting Chapter 10-quiz

Closing entries are like the finale to all financial reporting books. This is where journal entries meet at the end of the accounting period to transfer both permanent and temporary accounts. Did you understand how this process works and what it entails? Give the quiz below a try and see your score.

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.
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