3.4 Prepare closing entries and post-closing trial balance
1) Dividend accounts are closed by crediting them and debiting retained earnings.
2) To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted, prepare the adjustments.
3) The post-closing trial balance is a listing of the general ledger accounts that have balances at the end of the accounting period.
4) Assets, liabilities, and retained earnings are permanent accounts that are closed at the end of the accounting period.
5) Expense accounts are closed by crediting them and debiting retained earnings.
6) Revenues, expenses, and dividends are called permanent accounts.
7) Revenue accounts are closed by crediting them and debiting retained earnings.
8) The account to which revenue and expenses are closed is called __________.
9) Dividends paid and net losses are:
A) additions to retained earnings.
B) subtractions from retained earnings.
C) additions to net income.
D) subtractions from net income.
E) additions to assets.
10) Closing the revenue, expense, and dividend accounts:
A) yields the amount of net income or net loss for the period.
B) yields the change in retained earnings for the period.
C) yields the change in the permanent accounts for the period.
D) yields the final balance in shareholder's equity for the period.
E) yields the change in balance sheet accounts.