Closing Entries Quick Test | AccountingCoach

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1. The end-of-year balances in the revenue accounts will become the following year’s beginning balances.
2. The balance in the owner’s drawing account is transferred to the owner’s capital account at the end of each accounting year.
3. The closing entries will include a __________ to the Sales account.
4. Prepaid Insurance is a temporary account.
5. Interest Receivable is a permanent account.
6. The term nominal accounts is sometimes used in place of the term temporary accounts.
7. The term real accounts is similar to permanent accounts.
8. Temporary accounts are closed at the end of each accounting year.
9. Permanent accounts are closed at the end of each accounting year.
10. A computerized bookkeeping system could mean you will not see an Income Summary account.

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Closing Entries(Quick Test)

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