ACCT. 2 QUIZ- CHAPTER 20

Update the general ledger accounts at the end of a period.

To transfer the balances of the temporary accounts to a permanent account, are prepared.

Once the post closing trial balance is prepared,______ this should be in balance.

The report prepared at the end of the period to test the equality of the general ledger after all adjusting and closing entries have been posted.

After the closing entries have been posted there will be zero balances in the______.

______is written in the description column of the general journal before recording the entries that bring all temporary accounts to zero balances.

_______is written in the Description column of the general journal before recording the entries that update the general ledger accounts.

The worksheet adjustments update the general ledger accounts.

The sum of all the debit balances of the contra revenue, cost of Merchandise, and expense accounts is the amount credited to income summary when recording the closing entry.

The basic steps in the accounting cycle are not the same for all businesses.

The account balances that appear on the post closing trial balance are the same as those on the balance sheet.

Four closing entries are required to close the temporary accounts for a merchandising business organized as a corporation.

The source information for the closing entries is the balance sheet section of the worksheet.

After the closing entries have been posted all of the permanent accounts will have zero balances.

The temporary revenue account is closed by crediting it for its balance.