Sheets Transfer Application

TRUE OR FALEs

1. preparing a work sheet at the end of each fical period to summarize the gener al ledger information needed to prepare financial statements is an application of the accounting concept Accounting period cycle

2. A source document is prepared for adjusting entries.

3. The ending account balances of permanent accounts for one fiscal period are the beginning acout balances for the next fiscal period.

4. At the end of a fiscal period, the balances of temporary account are summarized and transferred to the owner's capital account.

5. Temporary accounts must start each fiscal period with a zero balance.

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