Self Assessment Quizzes

CHAPTER 20: Section 2 Posting Closing Entries

	1.	After all closing entries are posted

		a.	income equals expenses
		b.	all permanent accounts have been closed to retained earnings
		c.	a post-closing trial balance is prepared
		d.	income is greater than expenses

	2.	The fifth step in the accounting cycle for a merchandising corporation is

		a.	post to the general and subsidiary ledgers
		b.	prepare a trial balance
		c.	complete the work sheet
		d.	journalize and post the adjusting entries

	3.	The accounting cycle of a merchandising corporation has

		a.	nine steps
		b.	ten steps
		c.	four closing entries
		d.	two financial statements

	4.	The information to prepare closing entries is found

		a.	on the income statement section of the work sheet
		b.	on the balance sheet section of the work sheet
		c.	on the equity section of the worksheet
		d.	on the sunny side of the street

	5.	The post-closing trial balance contains only the

		a.	Balance Sheet accounts
		b.	Income Statement accounts
		c.	Equity accounts
		d.	Temporary Capital accounts