下载后可任意编辑True / False Questions 1. Accounts that appear in the balance sheet are often called temporary (nominal) accounts. 2. Income Summary is a temporary account only used for the closing process. 3. Revenue accounts should begin each accounting period with zero balances. 4. Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period. 5. The closing process takes place after financial statements have been prepared. 6. Revenue and expense accounts are permanent (real) accounts and should not be closed at the end of the accounting period. 7. Closing entries result in revenues and expenses being reflected in the owner's capital account. 8. The closing process is a step in the accounting cycle that prepares accounts for the next accounting period. 下载后可任意编辑9. The closing process is a two-step process. First revenue, expense, and withdrawals are set to a zero balance. Second, the process summarizes a period's assets and expenses. 10. Closing entries are required at the end of each accounting period to close all ledger accounts. 11. Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital. 12. The Income Summary account is a permanent account that will be carried forward period after period. 13. Closing entries are necessary so that owner's capital will begin each period with a zero balance. 14. Permanent accounts carry their balances into the next accounting period. Moreover, asset, liability and revenue accounts are not closed as long as a company continues in business. 15. The first step...
