Accounting

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Author:
hayley731
ID:
7529
Filename:
Accounting
Updated:
2010-02-21 01:54:37
Tags:
True or False
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Description:
Chapter 16
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  1. General ledger account balances are changed only by posting journal entries.
    True
  2. Adjusting entries bring subsidiary ledger accounts up to date.
    False
  3. Hobby Shack records the adjusting entries in the general journal on the next line following the last daily transaction.
    False
  4. Indicating a source document is not necessary when journalizing adjusting entries.
    True
  5. Temporary accounts are closed at the end of a fiscal period to prepare the general ledger for the next fiscal period.
    True
  6. Closing the temporary accounts at the end of a fiscal period is an application of the accounting concept Matching Expenses with Revenue.
    True
  7. A temporary account is closed by recording an equal amount on the side opposite of the balance.
    True
  8. The Trial Balance columns of a work sheet and an income statement contain the info needed to journalize closing entries.
    False
  9. Permanent accounts are sometimes referred to as nominal accounts.
    False
  10. The ending account balances of permanent accoutns for one fiscal period are the beginning account balances for the next fiscal period.
    True
  11. Contra accounts with credit balances are closed by debiting teh accounts and crediting Income Summary.
    True
  12. Expense accounts are closed by debiting the expense accounts and crediting Income Summary.
    False
  13. The Income Summary account is closed into the Retained Earnings account.
    True
  14. Dividends increase the earnings retained by a corporation.
    False
  15. After the closing entry for the Dividends account is posted, the Dividends account has a zero balance.
    True
  16. After all closing entries are posted, the income statement accounts are the only general ledger accoutns that have balances.
    False
  17. When the ledger is ready for hte next fiscal period, this is an application of the Business Entity accounting concept.
    False
  18. The purpose of the post-closing trial balance is to porve the general ledger equity of debits and credits.
    True

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