| A | B |
|---|
| General ledger account balances are changed only by | posting journal entries |
| Information needed for journalizing closing entries is taken from the | Adjustment columns of a work sheet |
| At the end of a fiscal period, which accounts are closed to prepare the general ledger for the next fiscal period? | Temporary Accounts |
| What is an example of a temporary account? | Income Summary |
| What is an example of a permanent account? | Retained Earnings |
| What is the closing entry for dividends? | Debit Retained Earnings, Credit Dividends |
| Which temporary account is closed to Retained Earnings? | Dividends |
| Which general ledger accounts are listed on the post-closing trial balance? | All accounts that have a balance |
| Which kind of entries bring general ledger accounts up to date? | Adjusting Entries |
| What's the adjusting entry for Revenue (Sales) and temporary accounts with normal credit balances? | Debit Sales and other temporary accounts with credit balances, Credit Income Summary |
| What's the closing entry for Expenses and Purchases and accounts with normal debit balances? | Debit Income Summary, Credit Purchases, Expenses and other temporary accounts with debit balances |
| What's the closing entry to close income summary and record the net income? | Debit Income Summary, Credit Retained Earnings |
| What's the closing entry to close Income Summary and record a net los? | Debit Retained Earnings and Credit Income Summary |
| After all adjusting and closing entries are posted, the temporary accounts will have a | zero balance |
| The two types of journal entries needed to change general ledger account balances at the end of the fiscal period are | adjusting and closing entries |
| Recording closing entries to prepare temporary accounts for the next fiscal period is an application of the accounting concept | Matching Expenses with Revenue |
| The amounts needed for closing entries are obtained from the work sheet's | Income Statement and Balance Sheet columns |
