Principles of Accounting I Module Exam II.docx - Principles...

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Principles of Accounting IModule Exam II, Chapters 4 and 5True / False Questions1.Accounts that appear in the balance sheet are often called temporary (nominal)accounts.True False
2.Income Summary is a temporary account only used for the closing process.
3.Revenue accounts are temporary accounts that should begin each accounting periodwith zero balances.
4.Closing revenue and expense accounts at the end of the accounting period serves tomake the revenue and expense accounts ready for use in the next period.
5.The closing process takes place before financial statements have been prepared.True False
6.Revenue and expense accounts are permanent (real) accounts and should not be closedat the end of the accounting period.
Multiple Choice Questions7.Another name for a temporary account is a(n):
8.Which of the following accounts are permanent (real) accounts?
payable.E. Salariesexpense.A. All ledger accounts are closed to start the newaccounting period.B. All temporary accounts are closed but permanent accounts arenot closed.C. All real accounts are closed but nominal accounts are notclosed.D. All permanent accounts are closed but nominal accounts arenot closed.E. All balance sheet accounts areclosed.10. Revenues, expenses, and withdrawals accounts, which are closed at the end of eachaccounting period are:A. Realaccounts.B. Temporaryaccounts.C. Closingaccounts.D. Permanentaccounts.E. Balance sheet
accounts.11. Which of the following statements is incorrect?

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Term
Summer
Professor
NoProfessor
Tags
Balance Sheet, Revenue, Jazz, Generally Accepted Accounting Principles

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