Which of the following is not true? Group of answer choices Assets, liabilities, and capital are temporary accounts. All information from closing can be obtained from the worksheet or ledger. When closing is complete, all revenue accounts will have a zero balance. Closing entries are usually done only at year-end.

Which of the following is not true? Group of answer choices Assets, liabilities, and capital are temporary accounts. All information from closing can be obtained from the worksheet or ledger. When closing is complete, all revenue accounts will have a zero balance. Closing entries are usually done only at year-end.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.32E

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What would happen if the company failed to make closing entries at the end of the year?
If Income from Services had a 20,400 credit balance before closing entries, which of the following would be the appropriate closing entry to close revenues?
After the adjusting entries are recorded and posted and the financial statements have been prepared, you are ready to record the closing entries. Closing entries zero out the temporary owners equity accounts (revenue(s), expenses(s), and Drawing). This process transfers the net income or net loss and the withdrawals to the Capital account. In addition, the closing process prepares the records for the new fiscal period. Required 1. Journalize the dosing entries in the general journal. (If you are using Working Papers to prepare the closing entries, enter your transactions beginning on page 5.) 2. Post the closing entries to the general ledger accounts. (Skip this step if you are using CLGL.) 3. Prepare a post-dosing trial balance as of October 31, 20--. Check Figures 1. Debit to Income Summary second entry, 12,023.25 2. Post-closing trial balance total, 37,420.00
Which of the following is not true about closing entries? a.By closing nominal accounts at the end of the period to zero, it is possible to isolate next period’s information correctly. b.All real accounts are closed at the end of the period. c.There are two closing entries that update the retained earnings account. d.The closing entries are dated the last day of the accounting period.
Which of the following account is not a temporary account while closing all temporary accounts In the closing process at the end of a financial year? Select one: a. Sales Revenue b. Insurance expense c. Cash d. Income Summary
Which of the follwing in correct? a. Balance sheet accounts are considered temporary accounts and these accounts have balances that are carried forward from year to year. b. Balance sheet accounts are considered permanent accounts and these accounts have balances that are carried forward from year to year. c. Balance sheet accounts are considered permanent accounts and these accounts have balances that are closed each year. d. Profit and Loss accounts are considered permanent accounts and these accounts have balances that are closed each year.
Which of the following describes the purpose(s) of closing entries? a. Adjust the balances of asset and liability accounts for unrecorded activity during the period.b. Transfer the balances of temporary accounts (revenues, expenses, and dividends) to Retained Earnings. c. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period. d. Both b. and c.
Which of the following accounts ordinarily would not appear in the post-closing trial balance? Hint: Temporary accounts are closed and not carried forward to the next accounting period. Group of answer choices Fees Earned Supplies Cash Accumulated Depreciation
Once closing entries have been entered in the general journal and posted to the ledger, what is the effect on the owner’s capital (or retained earnings) account? Explain the purpose of a post-closing trial balance in your own words and answer this question: Is the post-closing trial balance mandatory as a step in the accounting cycle? Reflect on this question: Assuming a company’s first year-end, would financial statements be affected if the closing process were not completed? Explain.
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.
explain what accounting principles or concepts would be violated if the accounts were not closed at the end of one accounting period when this had been done in previous years.
After all revenue and expenses have been closed at the end of the fiscal period and December 31, income summary has a debit of 45550 and a credit of $36,520. On the same date, D. Mau, drawing has a debit balance of $12,000 and D. mau, capital had a beginning credit balance of $63,410. a. Journalize the entries to close the remaining temporary accounts. b. What is the new balance D. Mau, capital after the remaining temporary accounts?