Answer

accounts would not include: b. Salaries and 18. The purpose of closing entries is to a. Accounts receivable to eamings when an account is fully paid. Balances in temporary accounts c, Inventory permanent account. d Assets and to cost of goods sold when merchandise sold. liabilities when operations are discontinued. 19. When the amount of revenue collocted in advance docreases during an accounting period: b, Accrual basis revenues exceed cash collections from customers. Accrual-bas net income exceeds cash basis net income. is revenues are less than cash col lections from customers. income is less than cash basis net income. 20. When converting an income statement from a cash basis to an accrual basis, which of the a. An adjustment for depreciat decrease in ion reduces net income. salaries payable decreases net income. c. A reduct prepaid expenses decreases net income. d An increase in accrued payables decreases Use the following to answer questions 21-24: Listed below are year-end account balances (in Smillions) taken from the records of Symphony Debit Credit Accounts receivable-trade Building and equipment Interest receivable 30 Notes receivable (ong-term) 450 Petty cash fund Supplies Accounts payable-trade Accumulated depreciation Additional paid-in capital Allowance for uncollectible accounts Cash dividends payable Common stock, at par