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Quick Quiz

1. Which of the following accounts are permanent accounts?

___ Cash ___ Prepaid Rent ___ Fees Earned

___ Rent Expense ___ Drawing ___ Land

___ Capital ___ Accounts Receivable ___ Accum. Depreciation

___ Accounts Payable ___ Wages Expense ___ Fares Earned

2. Which of the following accounts would be closed to the Income Summary account?

___ Prepaid Insurance ___ Capital ___ Deprec.Exp.--Truck

___ Insurance Expense ___ Truck ___ Wages Expense

___ Fees Earned ___ Accounts Receivable ___ Accum.Depre.--Truck

___ Drawing ___ Notes Payable ___ Income Summary

3. After the first two steps of the closing process the Income Summary account has a debit of $18,000 in it and a credit of $30,000 in it:

a) Is this a net income ____ or a net loss ____ ?

b) How much? _____________

c) Would the Income Summary account then need to be debited ___ or credited ___ to close it?

4. During the closing process the Capital account was debited two times. One of the debits was to close the Drawing account to Capital. What would the other debit be for? (be specific)

_____________________________________________________________

5. Which accounts would not have a balance after closing entries have been posted?

___ Cash ___ Income Summary ___ Wages Expense

___ Deprec.Exp.--Truck ___ Capital ___ Drawing

___ Accum.Deprec.--Truck ___ Accounts Receivable ___ Fees Earned

___ Accounts Payable ___ Prepaid Rent ___ Rent Expense

6. What is the last step in the closing process?
___________________________________________________

[Answer Key]

1. Which of the following accounts are permanent accounts?

X Cash X Prepaid Rent ___ Fees Earned

___ Rent Expense ___ Drawing X Land

X Capital X Accounts Receivable X Accum. Depreciation

X Accounts Payable ___ Wages Expense ___ Fares Earned

2. Which of the following accounts would be closed to the Income Summary account?

___ Prepaid Insurance ___ Capital X Deprec.Exp.--Truck

X Insurance Expense ___ Truck X Wages Expense

X Fees Earned ___ Accounts Receivable ___ Accum.Depre.--Truck

___ Drawing ___ Notes Payable ___ Income Summary

3. After the first two steps of the closing process the Income Summary account has a debit of $18,000 in it and a credit of $30,000 in it:

a) Is this a net income X or a net loss ____ ?

b) How much? $12,000

c) Would the Income Summary account then need to be debited X or credited ___ to close it?

4. During the closing process the Capital account was debited two times. One debit was to close the Drawing account to Capital. What would the other debit be for? (be specific)

to close a Net Loss from the Income Summary account

5. Which accounts would not have a balance after closing entries have been posted?

___ Cash X Income Summary X Wages Expense

X Deprec.Exp.--Truck ___ Capital X Drawing

___ Accum.Deprec.--Truck ___ Accounts Receivable X Fees Earned

___ Accounts Payable ___ Prepaid Rent X Rent Expense

6. What is the last step in the closing process?
close the Drawing account to the Capital account

1. Which of the following accounts are permanent accounts?
___	Cash	___	Prepaid Rent	___	Fees Earned
___	Rent Expense	___	Drawing	___	Land
___	Capital	___	Accounts Receivable	___	Accum. Depreciation
___	Accounts Payable	___	Wages Expense	___	Fares Earned

2. Which of the following accounts would be closed to the Income Summary account?
___	Prepaid Insurance	___	Capital	___	Deprec.Exp.--Truck
___	Insurance Expense	___	Truck	___	Wages Expense
___	Fees Earned	___	Accounts Receivable	___	Accum.Depre.--Truck
___	Drawing	___	Notes Payable	___	Income Summary

3. After the first two steps of the closing process the Income Summary account has a debit of $18,000 in it and a credit of $30,000 in it:
	a) Is this a net income ____ or a net loss ____ ?
	b) How much? _____________
	c) Would the Income Summary account then need to be debited ___ or credited ___ to close it?


4. During the closing process the Capital account was debited two times. One of the debits was to close the Drawing account to Capital. What would the other debit be for? (be specific)
_____________________________________________________________

3. After the first two steps of the closing process the Income Summary account has a debit of $18,000 in it and a credit of $30,000 in it:
	a) Is this a net income X or a net loss ____ ?
	b) How much? $12,000
	c) Would the Income Summary account then need to be debited X or credited ___ to close it?

4. During the closing process the Capital account was debited two times. One debit was to close the Drawing account to Capital. What would the other debit be for? (be specific)
to close a Net Loss from the Income Summary account