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Multiple Choice Quiz
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1
One purpose of closing entries is to give zero balances to
A)asset and liability accounts.
B)liability and capital accounts.
C)revenue and expense accounts.
D)expense and capital accounts.
2
After the closing entries are posted to the ledger, each expense account will have
A)a debit balance.
B)a credit balance.
C)either a debit or a credit balance.
D)a zero balance.
3
Which of the following accounts is not closed?
A)Cash
B)Fees Income
C)Rent Expense
D)Joan Wilson, Drawing
4
The entry to close the Income Summary account may include
A)a debit to Income Summary and a credit to the owner's capital account.
B)a debit to Income Summary and a credit to Cash.
C)a debit to Cash and a credit to Income Summary.
D)a debit to Income Summary and a credit to the owner's drawing account.
5
Which of the following accounts will not normally have a zero balance after the closing entries have been posted?
A)Income Summary
B)Fees Income
C)The owner's capital account
D)Rent Expense
6
One purpose of closing entries is to
A)transfer the results of operations to owner's equity.
B)reduce the owner's capital account balance to zero so that the account is ready for the next period.
C)adjust the ledger account balances to provide complete and accurate figures for use on financial statements.
D)close all accounts so that the ledger is ready for the next accounting period.
7
The entry to transfer a net loss to the owner's capital account would include a debit to
A)the owner's capital account and a credit to Cash.
B)the owner's drawing account and a credit to the owner's capital account.
C)Income Summary and a credit to the owner's capital account.
D)the owner's capital account and a credit to Income Summary.
8
The revenue account Fees Income is closed by debiting
A)Cash and crediting Fees Income.
B)Fees Income and crediting Income Summary.
C)the owner's capital account and crediting Fees Income.
D)Income Summary and crediting Fees Income.
9
The owner's drawing account is closed by debiting
A)the owner's drawing account and crediting the owner's capital account.
B)the owner's capital account and crediting the owner's drawing account.
C)Income Summary and crediting the owner's drawing account.
D)the owner's drawing account and crediting Income Summary.
10
Which of the following statements is not correct?
A)Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period.
B)The Income Summary account is a temporary owner's equity account.
C)The Income Summary account is used only at the end of an accounting period to help with the closing procedure.
D)The owner's drawing account is closed to the Income Summary Statement.





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