logo image

ACCT Chapter 6

After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances.
true
One of the PurPoses of closing entries is to transfer net income or net loss for the period to the owner’s capital account.
true
Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period.
true
The owner’s capital account is closed at the end of each accounting period.
false
The entry to close the revenue account Fees Income requires a debit to that account
true
The entry to close an expense account requires a credit to the Income Summary account.
false
At the end of each accounting period, asset and liability account balances are reduced to zero.
false
A postclosing trial balance will not contain revenue and expense account balances
true
Adjusting entries must be journalized and posted before the closing entries are journalized and posted.
true
The Balance Sheet section of the worksheet contains the data that is used to make closing entries .
false
The Income Summary account is a temporary owner’s equity account.
true
The balance of the owner’s drawing account will appear on the postclosing trial balance
false
The Income Summary account is used only at the end of an accounting period to help with the closing procedure .
true
“Closing” is written in the Description column of the individual revenue and expense accounts in the general ledger.
true
A compound entry in the general journal is made to close expense accounts.
true
The entry to transfer net income to the owner’s capital account would include a debit to the owner’s capital account
false
Withdrawals by the owner for personal use do not affect net income or net loss of the business.
true
After the closing entries are posted, the balance of the owner’s capital account agrees with the amount of owner’s equity shown on the balance sheet for the period.
True
The temporary owner’s equity accounts are closed because they apply to only one accounting period.
True
Interpreting the financial statements is the last step in the accounting cycle.
True
Income and Expense Summary is an other name for the Income Summary account
True
The owner’s drawing account is closed to the Income Summary Statement
False
The postclosing trial balance contains balance sheet accounts only
True
The heading Closing Entries is usually written in the Description column of the general journal above the first closing entry
True
“After-closing trial balance” is another name for the postclosing trial balance.
True

Need essay sample on "ACCT Chapter 6"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy