Closing Process for service business

Which of the following accounts should be set to zero at the end of an accounting period?

• expenses
• capital
• accounts payable
• equipment

Another word for permanent is "nominal"?

• True
• False

The fourth step is to close which of the following accounts?

• capital
• withdrawals
• revenue
• expenses

Which account should be closed first?

• Revenue
• Expenses
• Income Summary
• Withdrawals

Income Summary is a temporary account.

• True
• False

Which of the following is a "real" account?

• cash
• expenses
• revenue
• income summary

Which of the following accounts is a temporary account?

• cash
• accounts payable
• revenue
• capital

Temporary accounts include assets, expenses, and dividends.

• True

• False

Journal entries used to prepare temporary accounts for a new fiscal period are closing entries.

• True
• False

The last step in the accounting cycle is to 

• record transactions in a journal
• prepare a work sheet
• journalize and post closing entries
• prepare a post-closing trial balance