1. Which of the following statements is not correct? A. Before the Income Summary account is closed,...
Question:
1. Which of the following statements is not correct?
A. Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period.
B. The Income Summary account is a temporary owner's equity account.
C. The Income Summary account is used only at the end of an accounting period to help with the closing procedure.
D. The owner's drawing account is closed to the Income Summary Statement.
2. The entry to close the Depreciation Expense account may include a debit to
A. The Income Summary account and a credit to the Depreciation Expense account.
B. The Income Summary and a credit to Cash.
C. Cash and a credit to the Income Summary account.
D. The Depreciation Expense account and a credit to the Income Summary account.
3. The entry to close the owner's drawing account may include a debit to the
A. Income Summary account and a credit to the owner's drawing account.
B. Owner's drawing account and a credit to Cash.
C. Owner's capital account and a credit to the owner's drawing account.
D. Owner's drawing account and a credit to the Income Summary account.
4. The entry to close the Accumulated Depreciation account may include a debit to
A. The Income Summary account and a credit to the Accumulated Depreciation account.
B. The Depreciation Expense account and a credit to the Accumulated Depreciation account.
C. The Accumulated Depreciation account and a credit to the Income Summary account.
D. None of these.
5. Which of the following accounts would be closed?
A. Accounts Receivable
B. Accumulated Depreciation
C. Supplies Expense
D. Joan Wilson, Capital
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws