1. The information on a work sheet can be used to prepare A. Year-end financial statements B. Adjusting entries C. Closing entries D. Interim financial statements E. All of these 2. A company shows an $800 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $600. This adjusting entry results in A. $600 more profit B. $600 less profit C. $200 difference between the debit and credit columns of the unadjusted trial balance D. $400 in the Income Statement Debit column on the work sheet E. $400 in the Balance Sheet Credit column on the work sheet 3. Which of the following statements is incorrect? A. Permanent accounts are another name for temporary accounts. B. Temporary accounts carry a zero balance at the beginning of each accounting period. C. The Income Summary account is a temporary account. D. Permanent accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence. E. Permanent accounts include assets. 1 of 4 4. Closing the temporary accounts at the end of each accounting period A. Serves to transfer the effects of these accounts to the proper equity account on the balance sheet B. Prepares the withdrawals account for use in the next period C. Gives the revenue and expense accounts zero balances D. Gives the withdrawals account a zero balance E. All of these 5. The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the A. Closing account B. Balance column account C. Income Summary account D. Contra account E. Temporary account