18. The entry to close the income summary account when there is net income at the end of the accounting period is: a. Debit capital; credit Income Summary c. Debit Income Summary; credit Dividends b. Debit Income Summary; credit capital d. Debit Dividends; credit Income Summary 19. If revenues are recognized only whena customer pays, what method of accounting is being used? a. Accrual basis b. Recognition basis c. Cash basis d. Matching basis 20. Correcting entries a. always affect at least one balance sheet account and one income statement account. b. affect income statement accounts only. c. affect balance sheet accounts only. d. may involve any combination of accounts in need of correction.

18. The entry to close the income summary account when there is net income at the end of the accounting period is: a. Debit capital; credit Income Summary c. Debit Income Summary; credit Dividends b. Debit Income Summary; credit capital d. Debit Dividends; credit Income Summary 19. If revenues are recognized only whena customer pays, what method of accounting is being used? a. Accrual basis b. Recognition basis c. Cash basis d. Matching basis 20. Correcting entries a. always affect at least one balance sheet account and one income statement account. b. affect income statement accounts only. c. affect balance sheet accounts only. d. may involve any combination of accounts in need of correction.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PB: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

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