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ACC 255 EXAM 1 NAU 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Temporary accounts with credit balances (revenues and gains)
are - correct answer -a. debited to income summary
Temporary accounts with debit balances (expenses and losses)
are - correct answer -a. credited to income summary
Close out Income Summary to Retained Earnings - correct
answer -Net income is credited
Net loss is debited
Dividends are debited
principle - correct answer -the amount borrowed or loaned
interest - correct answer -the cost of borrowing or lending
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Deferred expenses - correct answer -recorded assets that were
created when cash was paid in advance and that must be
reduced for the amount of expense actually incurred during the
period through use of the asset
Accrued expenses - correct answer -Expenses that have been
incurred but not yet recorded because cash will be paid after the
goods or services are used.
Deferred revenues - correct answer -recorded liabilities that
were created when cash was received in advance and that must
be reduced for the amount of revenue actually earned during the
period
Accrued revenues - correct answer -revenues that have been
earned but not yet recorded because cash will be received after
the services are performed or goods are delivered
permanent accounts - correct answer -Balance sheet: The
ending balance in each of these accounts becomes the beginning
account balance for the next period
ACC 255 EXAM 1 NAU 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Temporary accounts with credit balances (revenues and gains)
are - correct answer -a. debited to income summary
Temporary accounts with debit balances (expenses and losses)
are - correct answer -a. credited to income summary
Close out Income Summary to Retained Earnings - correct
answer -Net income is credited
Net loss is debited
Dividends are debited
principle - correct answer -the amount borrowed or loaned
interest - correct answer -the cost of borrowing or lending
, Page | 2
Deferred expenses - correct answer -recorded assets that were
created when cash was paid in advance and that must be
reduced for the amount of expense actually incurred during the
period through use of the asset
Accrued expenses - correct answer -Expenses that have been
incurred but not yet recorded because cash will be paid after the
goods or services are used.
Deferred revenues - correct answer -recorded liabilities that
were created when cash was received in advance and that must
be reduced for the amount of revenue actually earned during the
period
Accrued revenues - correct answer -revenues that have been
earned but not yet recorded because cash will be received after
the services are performed or goods are delivered
permanent accounts - correct answer -Balance sheet: The
ending balance in each of these accounts becomes the beginning
account balance for the next period
