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.TrueFalse
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 closed atthe 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 new accountingperiod.B.All temporary accounts are closed but permanent accounts are notclosed.C. All real accounts are closed but nominal accounts are notclosed.D. All permanent accounts are closed but nominal accounts are notclosed.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?12. Assets, liabilities, and equity accounts are not closed; these accounts are called:
13. Closing the temporary accounts at the end of each accounting period does all of the
followingexcept:

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Term
Spring
Professor
JenO'Hare
Tags
Balance Sheet, Revenue, Jazz, Generally Accepted Accounting Principles, Blessinger Co

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