Chapter 8 test

Question 1

journal entries recorded to update general ledger accounts at the end of a fiscal period

Answer 1

accounting cycle

Question 2

accounts used to accumulate information from one fiscal period to the next

Answer 2

adjusting entries

Question 3

accounts used to prepare temporary accounts for a new fiscal period

Answer 3

permanent accounts

Question 4

a trial balance prepared after closing entries are posted

Answer 4

post-closing trial balance

Question 5

the series of accounting activities included in recording financial information for a fiscal period

Answer 5

temporary records

Question 6

adjusting entry for supplies

Answer 6

debit- supplies expense (550)
credit- supplies (150)

Question 7

adjusting entry for Prepaid insurance

Answer 7

debit- insurance expense (520)
credit- prepaid insurance (160)

Question 8

closing entry for sales

Answer 8

debit- sales (410)
credit- income summary (330)

Question 9

closing entry for all expense accounts

Answer 9

debit- income summary (330)
credit- expense accounts (510,520,530…)

Question 10

closing entry for income summary with a net income

Answer 10

debit- income summary (330)
credit- capital account (310)

Question 11

closing entry for income summary with a net loss

Answer 11

debit- capital account (310)
credit- income summary (330)

Question 12

closing entry for owner’s drawing account

Answer 12

debit- capital account (310)
credit- drawing account (320)

Question 13

which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?

Answer 13

Accounting period cycle

Question 14

which accounting concept applies when expenses are reported in the same fiscal period when they are used to produce revenue?

Answer 14

matching expenses with revenue

Question 15

information needed for journalizing the adjusting entries is obtained from the…

Answer 15

work sheet’s adjustment columns

Question 16

after adjusting entries are posted, the supplies account balance will be equal to…

Answer 16

the cost of the supplies on hand at the end of a fiscal period

Question 17

when revenue is greater than total expenses, resulting in a net income, the income summary account has a…

Answer 17

credit balance

Question 18

information needed for recording the closing entries is obtained from the…

Answer 18

work sheet’s income statement and balance sheet columns

Question 19

income summary is…

Answer 19

a temporary account

Question 20

after the closing entries are posted, the owner’s capital account balance should be the same as…

Answer 20

shown on the balance sheet for the fiscal period

Question 21

the accounts listed on a post-closing trial balance are…

Answer 21

general ledger accounts with balances after the closing entries are posted

Question 22

source documents are checked for accuracy, and transactions are analyzed into debit and credit parts

Answer 22

1

Question 23

transactions, from information on source documents, are recorded in a journal

Answer 23

2

Question 24

journal entries are posted to the general ledger

Answer 24

3

Question 25

a work sheet, including a trial balance, is prepared from the general ledger

Answer 25

4

Question 26

financial statements are prepared from the work sheet

Answer 26

5

Question 27

adjusting and closing entries are journalized from the work sheet

Answer 27

6

Question 28

adjusting and closing entries are posted to the to the general ledger

Answer 28

7

Question 29

a post-closing trial balance of the general ledger is prepared

Answer 29

8