1. One purpose of closing entries is to give zero balances to

A. Asset and liability accounts.

B. Liability and capital accounts.

C. Revenue and expense accounts.

D. Expense and capital accounts.

2. After the closing entries are posted to the ledger, each expense account will have

A. A debit balance.

B. A credit balance.

C. Either a debit or a credit balance.

D. A zero balance.

3. Which of the following accounts is not closed?

A. Cash

B. Fees Income

C. Rent Expense

D. Joan Wilson, Drawing

4. The entry to close the Income Summary account may include

A. A debit to Income Summary and a credit to the owner's capital account.

B. A debit to Income Summary and a credit to Cash.

C. A debit to Cash and a credit to Income Summary.

D. A debit to Income Summary and a credit to the owner's drawing account.

Answer rating: 100% (QA)

1 C Revenue and expense ac... View the full answer