Question Details

The Income Summary account is an important account 



1.	The final closing entry to be journalized is typically the entry that closes the
a.	revenue accounts.
b.	dividends account.
c.	retained earnings account.
d.	expense accounts.


	2.	An error has occurred in the closing entry process if
a.	revenue and expense accounts have zero balances.
b.	the retained earnings account is credited for the amount of net income.
c.	the dividends account is closed to the retained earnings  account.
d.	the Statement of financial position accounts have zero balances.


	3.	The Income Summary account is an important account that is used
a.	during interim periods.
b.	in preparing adjusting entries.
c.	annually in preparing closing entries.
d.	annually in preparing correcting entries.



	4.	The balance in the income summary account before it is closed will be equal to
a.	the net income or loss on the income statement.
b.	the beginning balance in the retained earnings account.
c.	the ending balance in the retained earnings account.
d.	zero.


5.	After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to
a.	the beginning retained earnings reported on the retained earnings statement.
b.	the amount of the retained earnings reported on the statement of financial positions.
c.	zero.
d.	the net income for the period.




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