AFE Quiz 10: Closing Entries and the Post Trial Balance

What is the main purpose of closing entries?

To update asset accounts
To transfer the balances of temporary accounts to a permanent account
To prepare the income statement
To record cash transactions

Which of the following accounts is NOT closed at the end of the accounting period?

Service Revenue
Rent Expense
Owner’s Capital
Drawing

Which account is used temporarily during the closing process to accumulate revenues and expenses?

Owner’s Capital
Income Summary
Cash
Accounts Receivable

After closing entries are posted, which of the following accounts will have a zero balance?

Cash
Supplies
Service Revenue
Owner’s Capital

What is the purpose of the post-closing trial balance?

To verify that all temporary accounts have zero balances
To verify that debits equal credits after closing entries are posted
To prepare the income statement
To close the ledger accounts

Which of the following is a temporary account?

Owner’s Capital
Fees Earned
Equipment
Accounts Payable

Which entry closes the revenue accounts?

Debit Revenue, Credit Income Summary
Debit Income Summary, Credit Revenue
Debit Owner’s Capital, Credit Revenue
Debit Revenue, Credit Owner’s Capital

Which of the following accounts would appear on a post-closing trial balance?

Rent Expense
Owner’s Drawing
Cash
Service Revenue

What is the correct order for closing entries?

Expenses, Drawings, Revenues, Income Summary
Revenues, Expenses, Income Summary, Drawings
Drawings, Revenues, Expenses, Income Summary
Revenues, Income Summary, Expenses, Drawings

After closing entries, which accounts will have nonzero balances?

Expense accounts
Revenue accounts
Permanent accounts
Drawing account

ACCOUNTING for Everyone

AFE Quiz 10: Closing Entries and the Post Trial Balance

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