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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Closing Entries and the Postclosing Trial Balance

Multiple Choice Questions


1	What account is used a special owner's equity account and used to summarize the results of operations and is used only in the closing process?
		A)	Income statement
		B)	Owner's equity
		C)	Capital
		D)	Income summary


2	What type of account is Income Summary classified as?
		A)	Temporary
		B)	Permanent
		C)	Asset
		D)	Liability


3	During the closing process, which account is all the revenue closed to?
		A)	Revenue account
		B)	Capital
		C)	Owner's equity
		D)	Income Summary


4	During the closing process, which account is the drawing account closed to
		A)	Capital
		B)	Income Summary
		C)	Revenue
		D)	Net Income


5	Which statement contains the data to make the closing entries from?
		A)	Adjusted Trial Balance
		B)	Trial Balance
		C)	Income Statement
		D)	Balance Sheet


6	After closing an account, what is the balance remaining in that account?
		A)	The original amount
		B)	0
		C)	The opening balance
		D)	The finished balance


7	After the revenue and expense accounts are closed, what account is the income summary account closed to?
		A)	Income Summary
		B)	Capital
		C)	Net Income
		D)	Cash


8	What is the statement that is prepared to test the equality of total debits and credits after the closing process has been completed?
		A)	Adjusted Trial Balance
		B)	Statement of Owner's Equity
		C)	Post closing Trial Balance
		D)	Trail Balance


9	Of the accounts that appear on the post closing trial balance, which is true?
		A)	Assets, Revenue, Liabilities
		B)	Assets, Liabilities, Drawings
		C)	Assets, Liabilities, Capital
		D)	Assets, Capital, Expenses


10	Which is not a step in the accounting cycle?
		A)	Record the trial balance
		B)	Analyze transactions
		C)	Record adjusting entries
		D)	Record closing entries

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