Chapter 5 Quiz
Objectives:
1. Journalizing and posting adjusting entries.
2. Journalizing and posting closing entries.
3. Preparing a post-closing trial balance.
TRUE/FALSE
1. All closing entries must be posted before preparing the post-closing trial balance.
2. Financial statements report the same information as is contained on the worksheet, therefore adjusting and
closing the accounts is not necessary.
3. There are 4 closing entries.
4. Withdrawals are closed to the Income Summary account.
5. The Post-Closing Trial Balance is a last check on the equality of debits and credits within
the general ledger, before starting another accounting period.
MULTIPLE CHOICE
6. Which of the following accounts is not a temporary account?
a) Withdrawals
b) Fees Earned
c) Cash
d) Income Summary
7. Which statement reports only temporary accounts?
a) The income statement
b) The balance sheet
c) The statement of owner’s equity
d) None of the above are correct.
8. Accounts in which the balances are carried over from one accounting period to the next are
called:
a) real accounts.
b) nominal accounts.
c) temporary accounts.
d) zero accounts.
9. When the balance of the Income Summary account is a debit, the entry to close this account is:
a) debit Capital; credit Income Summary.
b) debit Income Summary; credit Revenue.
c) debit Revenue; credit Income Summary.
d) debit Income Summary; credit Capital.
10. After posting the closing entries, which of the following accounts is most likely not to have a zero balance?
a) Prepaid Insurance
b) Advertising Expense
c) J. Smith, Withdrawals
d) Medical Fees
Chapter 5
TRUE/FALSE
1. All closing entries must be posted before preparing the post-closing trial balance.
ANSWER: True
(L.O. 3)
2. Financial statements report the same information as is contained on the worksheet, therefore adjusting and
closing the accounts is not necessary.
ANSWER: False
(L.O. 1, 2)
3. There are 4 closing entries.
ANSWER: True
(L.O. 2)
4. Withdrawals are closed to the Income Summary account.
ANSWER: False
(L.O. 2)
5. The Post-Closing Trial Balance is a last check on the equality of debits and credits within
the general ledger, before starting another accounting period.
ANSWER: True
(L.O. 1)
MULTIPLE CHOICE
6.
ANSWER: c (L.O. 2)
7.
ANSWER: a
8.
ANSWER: a (L.O. 2)
9.
ANSWER: a (L.O. 2)
10.
ANSWER: a (L.O. 2)
(L.O. 2)
Chapter 5