True or False 1. If income summary has a credit balance after closing revenue and expense accounts, this indicates a net loss 2. The balance of the Drawing account is closed to the Capital account
True or False 1. If income summary has a credit balance after closing revenue and expense accounts, this indicates a net loss 2. The balance of the Drawing account is closed to the Capital account
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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1. If income summary has a credit balance after closing revenue and expense accounts, this indicates a net loss
2. The balance of the Drawing account is closed to the Capital account
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