Question Details

Closing entries are necessary for



1.	The permanent accounts appear on which financial statement?
a.	Statement of Financial Position.
b.	Income Statement.
c.	Retained Earning Statements.
d.	Statement of Cash Flows.


2.	Closing entries are necessary for
a.	permanent accounts only.
b.	temporary accounts only.
c.	both permanent and temporary accounts.
d.	permanent or real accounts only.



	3.	Each of the following accounts is closed to Income Summary except
a.	Expenses.
b.	Dividends 
c.	Revenues.
d.	All of these are closed to Income Summary.


	4.	Closing entries are made
a.	in order to terminate the business as an operating entity.
b.	so that all assets, liabilities, and equity  accounts will have zero balances when the next accounting period starts.
c.	in order to transfer net income (or loss) and dividends  to Retained Earnings .
d.	so that financial statements can be prepared.


	5.	Closing entries are
a.	an optional step in the accounting cycle.
b.	posted to the ledger accounts from the worksheet.
c.	made to close permanent or real accounts.
d.	journalized in the general journal.




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