Self Assessment Quizzes

CHAPTER 10: Section 1 Preparing Closing Entries

	1.	Amounts transferred to income summary represent

		a.	all the revenuves of a company
		b.	increases and decreases in owner`s equity
		c.	all the expenses of a company
		d.	the asset balance of a company

	2.	The general ledger account used to accumulate and summarize the revenue and expenses for the period is called the

		a.	permanent account
		b.	temporary capital account
		c.	owner`s capital account
		d.	income summary account

	3.	To close revenue for Speedman Delivery the journal entry would be

		a.	debit income summary and credit cash in bank
		b.	debit owner`s capital and credit delivery revenue
		c.	debit delivery revenue and credit income summary
		d.	debit income summary and credit delivery revenue

	4.	During the accounting period, transactions involving revenue, expenses, and withdrawals are recorded in

		a.	permanent accounts
		b.	financial statements
		c.	temporary capital accounts
		d.	temporary financial accounts

	5.	A journal entry with two or more debits or two or more credits is called a

		a.	duplicate entry
		b.	connecting entry
		c.	multiple entry
		d.	compound entry

	6.	Journal entries made to close temporary capital accounts are called

		a.	subsequent entries
		b.	closing entries
		c.	periodic entries
		d.	revenue and expense entries

	7.	At the beginning of an accounting period, temporary capital accounts start with

		a.	a zero balance
		b.	the prior period balance
		c.	the balance of net income or loss
		d.	a good breakfast

	8.	To close expenses for Speedman Delivery the journal entry would be

		a.	debit income summary and credit expense accounts
		b.	credit income summary and debit expense accounts
		c.	debit income summary and credit revenue and expense accounts
		d.	debit revenue and expense accounts and credit income summary