Reference no: EM132785573

True or false

Question 1: Closing entries can be prepared by referring solely to the Income Statement columns of the worksheet.

Question 2: After the adjusting and closing entries have been recorded and posted, the general ledger accounts that appear on the balance sheet have no balances.

Question 3: General ledger account balances agree with those in the financial statements even before adjusting and closing entries are recorded and posted.

Question 4: The incomé summary account is used to close the income and expense accounts.

Question 5: The balance of the owner's capital account represents the cumulative net result of income, expense and withdrawal transactions.

Question 6: Closing entries clear income and expense accounts at the end of the period.

Question 7: Trial balances are prepared primarily to ensure that no entries have been omitted.

Question 8: In the accounting cycle, closing entries are prepared before adjusting entries.

Question 9: In the accounting cycle, information from source documents is initially recorded the journal.

Question 10: Nominal account balances are reduced to zero by closing entries.

Question 11: Closing entries deal primarily with the balances of real accounts.

Question 12: The only accounts that are closed are income statement accounts.

Question 13: Closing entries result in the transfer of profit or loss into the owner's Capital account.

Question 14: After all closing entries have been entered and posted, the balance of the Income Summary account will be zero.

Question 15: Depreciation Expense-Building IS a permanent account