Question Details

Closing entries are journalized and posted


	1.	The income summary account
a.	is a permanent account.
b.	appears on the statement of financial position.
c.	appears on the income statement.
d.	is a temporary account.


2.	If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a
a.	debit to Retained Earnings.
b.	debit to Dividends 
c.	credit to Retained Earnings.
d.	credit to Dividends.


3.	Closing entries are journalized and posted
a.	before the financial statements are prepared.
b.	after the financial statements are prepared.
c.	at management's discretion.
d.	at the end of each interim accounting period.


	4.	Closing entries
a.	are prepared before the financial statements.
b.	reduce the number of permanent accounts.
c.	cause the revenue and expense accounts to have zero balances.
d.	summarize the activity in every account.


	5.	Which of the following is a true statement about closing the books of a corporation?
a.	Expenses are closed to the Expense Summary account.
b.	Only revenues are closed to the Income Summary account.
c.	Revenues and expenses are closed to the Income Summary account.
d.	Revenues, expenses, and the dividends account are closed to the Income Summary account.




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