Accounting

General ledger account balances are changed only by posting journal entries.
True False

Adjusting entries bring subsidiary ledger accounts up to date.
True False

Hobby Shack records the adjusting entries in the general journal on the next line following the last daily transaction.
True False

Indicating a source document is not necessary when journalizing adjusting entries.
True False

Temporary accounts are closed at the end of a fiscal period to prepare the general ledger for the next fiscal period.
True False

Closing the temporary accounts at the end of a fiscal period is an application of the accounting concept Matching Expenses with Revenue.
True False

A temporary account is closed by recording an equal amount on the side opposite of the balance.
True False

The Trial Balance columns of a work sheet and an income statement contain the info needed to journalize closing entries.
True False

Permanent accounts are sometimes referred to as nominal accounts.
True False

The ending account balances of permanent accoutns for one fiscal period are the beginning account balances for the next fiscal period.
True False

Contra accounts with credit balances are closed by debiting teh accounts and crediting Income Summary.
True False

Expense accounts are closed by debiting the expense accounts and crediting Income Summary.
True False

The Income Summary account is closed into the Retained Earnings account.
True False

Dividends increase the earnings retained by a corporation.
True False

After the closing entry for the Dividends account is posted, the Dividends account has a zero balance.
True False

After all closing entries are posted, the income statement accounts are the only general ledger accoutns that have balances.
True False

When the ledger is ready for hte next fiscal period, this is an application of the Business Entity accounting concept.
True False

The purpose of the post-closing trial balance is to porve the general ledger equity of debits and credits.
True False