Reference no: EM132461288

Question 1: which of the following is true?

A. only permanent accounts are closed.

B. Both permanent and temporary accounts are closed.

C. Neither permanent nor temporary accounts are closed.

D.Only temporary accounts are closed

Question 2: Which of the following incorrectly describes the closing process?

A. Net Income or net loss is transferred to the Cash account.

B. Net income or Net loss is transferred to the income Summary.

C. Permanent accounts balances are carried forward into the next accounting period.

D. Each revenue and each expense account is closed individually to the Income Summary.

Question 3: Which statement is incorrect concerning the adjusted trial balance?

A. an adjusted trial balance proves the equality of the total debit balances and the total credit balances.

B. the adjusted trial balance provides the primary basis for the preparation of the financial statements.

C. The adjusted trial balance does not list temporary accounts.

D. The company prepares the adjusted trial balance after it has journalized and posted the adjusting entries.

Question 4: All of the following are required steps in the accounting cycle except:

A. Journalizing and posting closing entries.

B. Preparing an adjusted trial balance.

C. Preparing a post-closing trail balance.

D. Preparing financial statements from the unadjusted trail balance.