Which of the following is a true statement about closing the books of a proprietorship? O Only revenues are closed to the Income Summary account. O Expenses are closed to the Owner's Drawings account. O Revenues, expenses, and the Owner's Drawings account are closed to the Income Summary account. O Only revenues and expenses are closed to the Income Summary account.

Which of the following is a true statement about closing the books of a proprietorship? O Only revenues are closed to the Income Summary account. O Expenses are closed to the Owner's Drawings account. O Revenues, expenses, and the Owner's Drawings account are closed to the Income Summary account. O Only revenues and expenses are closed to the Income Summary 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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Which of the following statements is not correct? Multiple Choice Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. The owner's drawing account is closed to the Income Summary account. The Income Summary account is used only at the end of an accounting period to help with the closing procedure. The Income Summary account is impacted by both the first and second step in the closing process.
Which of the following statements is correct about closing entries?a. Must debit or credit one income statement account and one statement of financialposition accountb. Include closing the dividends account to income summaryc. All of these choices are correctd. Are posted to the appropriate general ledger accounts
The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the: Group of answer choices Contra account. Closing account. Balance column account. Income Summary account.
Which of the following transactions would not be recorded in the general journal? a.Adjusting entry for depreciation b.Closing entry for rent expense c.Owner withdrawal of cash d.Adjusting entry for supplies used
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.
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
Identify which of the following accounts would be listed on the companys Post-Closing Trial Balance. A. Accounts Receivable B. Accumulated Depreciation C. Cash D. Office Expense E. Note Payable F. Rent Revenue G. Retained Earnings H. Unearned Rent Revenue
If a journal entry includes a debit or credit to the Retained Earnings account, it is most likely which of the following? A. a closing entry B. an adjusting entry C. an ordinary transaction entry D. outside of the accounting cycle
Which of these accounts would be present in the closing entries? A. Dividends B. Accounts Receivable C. Unearned Service Revenue D. Sales Tax Payable
Which of these accounts is not included in the post-closing trial balance? A. Land B. Notes Payable C. Retained Earnings D. Dividends
The temporary account used only in the closing process to hold the amounts of revenues and expenses before the net difference is added or subtracted from the owner’s capital account is called the a. Closing account. d. Balance Column account. b. Nominal account. e. Contra account. c. Income Summary account.
Indicate whether a debit or credit is required to close each of the following accounts. Use the sym-bols D if a debit is required, C if a credit is required, and N if the account is not closed at the end of the period.a. Salary Expenseb. Unexpired Insurancec. Consulting Fees Earnedd. Depreciation Expensee. Dividendsf. Retained Earningsg. Interest Revenueh. Accumulated Depreciationi. Income Taxes Expensej. Unearned Revenuek. Income Summary (of a profitable company)l. Income Summary (of an unprofitable company)