Question: The dividends, revenue, and expense accounts are temporary accounts.

Answer: True

Question: Accounts payable is a temporary account.

Answer: False

Question: Depreciation expense is a temporary account.

Answer: True

Question: Accumulated depreciation is a temporary account.

Answer: False

Question: Accrued salaries payable is a temporary account.

Answer: False

Question: A temporary account, Income Summary, is used in closing revenue and expense accounts.

Answer: True

Question: An important purpose of closing entries is to set permanent account balances to zero in order to begin the next period.

Answer: False

Question: The proper sequence for the accounting cycle is

Answer: analyze, journalize, post, adjust, prepare statements, close

Question: Closing entries are journalized and posted

Answer: after the financial statements are prepared

Question: In preparing closing entries

Answer: each expense account will be credited