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General ledger account balances are changed only by posting journal entries.
True
False
True
Adjusting entries bring subsidiary ledger accounts up to date.
True
False
False
Hobby Shack records the adjusting entries in the general journal on the next line following the last daily transaction.
True
False
False
Indicating a source document is not necessary when journalizing adjusting entries.
True
False
True
Temporary accounts are closed at the end of a fiscal period to prepare the general ledger for the next fiscal period.
True
False
True
Closing the temporary accounts at the end of a fiscal period is an application of the accounting concept Matching Expenses with Revenue.
True
False
True
A temporary account is closed by recording an equal amount on the side opposite of the balance.
True
False
True
The Trial Balance columns of a work sheet and an income statement contain the info needed to journalize closing entries.
True
False
False
Permanent accounts are sometimes referred to as nominal accounts.
True
False
False
The ending account balances of permanent accoutns for one fiscal period are the beginning account balances for the next fiscal period.
True
False
True
Contra accounts with credit balances are closed by debiting teh accounts and crediting Income Summary.
True
False
True
Expense accounts are closed by debiting the expense accounts and crediting Income Summary.
True
False
False
The Income Summary account is closed into the Retained Earnings account.
True
False
True
Dividends increase the earnings retained by a corporation.
True
False
False
After the closing entry for the Dividends account is posted, the Dividends account has a zero balance.
True
False
True
After all closing entries are posted, the income statement accounts are the only general ledger accoutns that have balances.
True
False
False
When the ledger is ready for hte next fiscal period, this is an application of the Business Entity accounting concept.
True
False
False
The purpose of the post-closing trial balance is to porve the general ledger equity of debits and credits.
True
False
True
Author
hayley731
ID
7529
Card Set
Accounting
Description
Chapter 16
Updated
2010-02-21T06:54:37Z
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