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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

True/False Questions


1	The general ledger is a continuing record.
		A)	True
		B)	False


2	The postclosing trial balance will show figures for asset, liability, owner`s equity, revenue, and expense accounts.
		A)	True
		B)	False


3	The total of all expenses appears on the credit side of the Income Summary account.
		A)	True
		B)	False


4	To close a revenue account, the accountant debits that account and credits the Income Summary account.
		A)	True
		B)	False


5	After the revenue and expense accounts have been closed into the Income Summary account, that account will reflect the same information as the totals before net income or loss in the Income Statement columns of the worksheet.
		A)	True
		B)	False


6	The Income Summary is a financial statement prepared at the end of each accounting period.
		A)	True
		B)	False


7	Adjusting entries create a permanent record of any changes in account balances that are shown on the worksheet.
		A)	True
		B)	False


8	If an adjustment is not made for supplies used, the net income for the period will be understated.
		A)	True
		B)	False


9	Closing entries reduce the balances of revenue and asset accounts to zero so that they are ready to receive data for the next period.
		A)	True
		B)	False

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