A closing entry would never include a:O debit to a revenue account and a credit to Income Summary.O debit to an asset account and a credit to a liability account.O debit to Income Summary and a credit to Retained Earnings.O credit to an expense account and a debit to Income Summary.

The journal entries are prepared to keep the record of day to day transactions of the business.

Answered: A closing entry would never include a:…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter6: Financial Statements And The Closing Process

Section: Chapter Questions

Problem 3MC: Which of these is the first step in the closing process? (a) Close revenue account(s). (b) Close...

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Which of these accounts would not be present in the closing entries? A. Utilities Expense B. Fees Earned Revenue C. Insurance Expense D. Dividends Payable
Which of these is the first step in the closing process? (a) Close revenue account(s). (b) Close expense accounts. (c) Close the Income Summary account. (d) Close the drawing account.
A credit to a liability account a) indicates a decrease in the amount owed to creditors. b) is an error. c) must be accompanied by a debit to an asset account. d) indicates an increase in the amount owed to creditors.
Under the allowance method of uncollectible accounts, the entry to write off a customer’s account affects the accounting equation by: decreasing an asset and decreasing stockholders’ equity (expense) increasing an asset and decreasing an asset increasing a liability and decreasing a liability decreasing a liability and increasing stockholders’ equity (revenue)
It is obvious that an error occurred in the preparation and/or posting of closing entries if Group of answer choices A. all revenue and expense accounts have zero balances. B. all balance sheet accounts have zero balances. C. the retained earnings account is debited for the amount of the net loss of the period. D. the income summary account is debited for the amount of the net income for the period.
The goal of closing entries does NOT include: A. to clear revenue and expense accounts. B. to clear the Withdrawals account. C. to clear the Cash account. D. to update the Capital account balance.
Which of the following errors would cause the BalanceSheet and Statement of Owner’s Equity columns of a worksheet to be out of balance? a. Entering a revenue amount in the Balance Sheet and Statement of Owner’s Equity Debit column. b. Entering a liability amount in the Balance Sheet and Statement of Owner’s Equity Credit column. c. Entering an expense amount in the Balance Sheet and Statement of Owner’s Equity Debit column. d. Entering an asset amount in the Income Statement Debit column. e. Entering a liability amount in the Income Statement Credit column.
Which of the following statements is incorrect? Group of answer choices A. The accounting equation must always remain in balance. B. Liability accounts are increased by debit entries and decreased by credit entries. C. Expense accounts normally have debit balances. D. Common Stock and Retained Earnings accounts are increased by credit entries and decreased by debit entries.
An adjusting entry normally affects a. Balance sheet accounts only b. Income statement accounts only c. An income statement account and a balance sheet account d. Balance sheet accounts or income statement accounts only
Which of the following is a distinguishing characteristic of an adjusting entry for deferrals? Select one: a. It includes the adjustment of an amount previously recorded in a balance sheet account. b. It always impacts the cash account. c. It affects at least one liability account. d. It increases a balance sheet account and decreases an income statement account.
If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue account, which of the following describes the effect of the debit portion of the entry? increases the balance of a stockholders' equity account increases the balance of a contra revenue account decreases the balance of a liability account decreases the balance of an asset account
A credit is not the normal balance for which account listed below? Select one: a. Owner’s Drawings account b. Revenue account c. Capital account d. Liability account

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A closing entry would never include a: O debit to a revenue account and a credit to Income Summary. O debit to an asset account and a credit to a liability account. O debit to Income Summary and a credit to Retained Earnings. O credit to an expense account and a debit to Income Summary.