True False True False True False True False True False True False True False Check your knowledge of this chapter's key here, in your ebook, or in your eLab course. 1. An example of an adjusting entry is one that updates the value of a fixed asset. 2. An Income Summary account is used to clear out permanent account balances. 3. QuickBooks won't allow you to record a transaction for which debits do not equal credits 4. QuickBooks provides a worksheet to use when preparing financial statements. 5. When accounting for depreciation, you credit the Accumulated Depreciation account. 6. A permanent account is one for which the ending balance for one fiscal period is the opening balance for the next. 7. The Income Statement shows the balance of permanent accounts as of a certain date. 8. Analyzing the Balance Sheet allows you to calculate the gross margin percentage. 9. The Income Statement is a financial report that displays income and expenses over a specific period. 10. An advantage of closing the books in QuickBooks is that you can restrict access to prior-period transactions by setting a password. 11. Which of the following is a permanent account? A. Boat Loan B. Bank Service Charges C. Cost of Goods Sold D. Product Sales True False True False True False 12. An adjusting entry may allow you to A. enter a bill from a vendor B. record depreciation for a fiscal period C. create a sales receipt to record the daily sales D. record a deposit into the Checking account 13. Which report lets you track every entry, modification, or deletion to transactions in yourf A. Closing Date Exception B. Post-Closing Trial Balance C. Accountant's Copy D. Audit Trail 14. What does QuickBooks NOT do for you automatically at the end of the fiscal year? A. Transfer net income or net loss to Retained Earnings B. Ensure you start the new fiscal year with zero balances for the permanent account C. Close out temporary accounts D. Allow you to start the new fiscal year with a net income of zero