closing the accounts quiz NOV 21

Question 1

The closing of accounts occur at the ___________

Answer 1

end of periods

Question 2

closing the accounts zeros out _________,_______,______,_____

Answer 2

rev
exp
drawings
income summary accounts

Question 3

closing the accounts updates the capital to

Answer 3

the ending balance

Question 4

what are the 4 steps of closing off the accounts

Answer 4

• close REVENUES to income summary account
• close individual expenses to income summary account
• close income summary account to capital account
• close drawings account to capital account

Question 5

The closing of accounts only occurs to the temporary accounts

Temporary
VS
Permanent

Answer 5

temporary is closed at the end of the period
start next period with a 0 balance

permanent is NOT closed at the end of the period
ending balance is carried forward to next period

Question 6

Cash

Net Income

Mortgage payable

Answer 6

not closed (P)

closed (T)

not closed (P)

Question 7

Close an account exactly on the __________ side of that account’s normal balance

Answer 7

opposite

Question 8

The income summary resembles the __________

Answer 8

income statement
the purpose is to close a NI or NL

Question 9

The normal balance of NI is
Net income being closed is

Answer 9

CR
DR

Question 10

The normal balance of NL is
Net LOSS being closed is

Answer 10

DR
CR

Question 11

Capital account resembles the ____________-

Answer 11

statement of owners equity/ retained earnings