Accounting 1 Chapter 8

Which of the following is FALSE about closing journal entries?

• Closing entries are required for all permanent accounts

• Closing entries are required for all temporary accounts

• The closing entry will reduce the account balance to zero

Permanent accounts with (non-zero) balances go on the post-closing trial balance.

• True

• False

Cash

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance

Petty Cash

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance

Supplies Expense

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance

Cash Short and Over

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance

Insurance Expense

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance

Accounts Receivable

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance

Prepaid Insurance

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance

Income Summary

• Requires a closing journal entry

• Appears on the Post-Closing Trial Balance