1. Which of the following accounts will not normally have a zero balance after the closing entries have been posted?

A. Income Summary

B. Fees Income

C. The owner's capital account

D. Rent Expense

2. One purpose of closing entries is to

A. Transfer the results of operations to owner's equity.

B. Reduce the owner's capital account balance to zero so that the account is ready for the next period.

C. Adjust the ledger account balances to provide complete and accurate figures for use on financial statements.

D. Close all accounts so that the ledger is ready for the next accounting period.

3. The entry to transfer a net loss to the owner's capital account would include a debit to

A. The owner's capital account and a credit to Cash.

B. The owner's drawing account and a credit to the owner's capital account.

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

D. The owner's capital account and a credit to Income Summary.

4. The revenue account Fees Income is closed by debiting

A. Cash and crediting Fees Income.

B. Fees Income and crediting Income Summary.

C. The owner's capital account and crediting Fees Income.

D. Income Summary and crediting Fees Income.

5. The owner's drawing account is closed by debiting

A. The owner's drawing account and crediting the owner's capital account.

B. The owner's capital account and crediting the owner's drawing account.

C. Income Summary and crediting the owner's drawing account.

D. The owner's drawing account and crediting Income Summary.

Answer rating: 100% (QA)

1 C The owners capital account 2 D Close all accounts so ... View the full answer