Exam 5: The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

The Rent Expense account had a normal balance of $2,725. The entry to close the account would include a

The balance in Income Summary after posting all revenues and expenses for the period is equal to net income/loss.

Which of the following is a real account?

When using accounting software, is it still necessary to "close the books" at year-end?

Explain how the closing entry would be affected if there was a net loss instead of a net income.

How do you close a revenue account?

Which of the following sequence of actions describes the proper order in the accounting cycle?

Depreciation Expense is closed to Income Summary, but Accumulated Depreciation is not closed.

The goal of closing is to clear all temporary accounts and update Capital.

On Flex Company's worksheet the revenue account had a normal balance of $4,100. The entry to close the account would include a

The Post-Closing Trial Balance contains the Opening Balance of Capital.

Nominal accounts are called temporary accounts because their balances are not carried forward to the next accounting period.