Reference no: EM132785367

TRUE if the statement is correct. Write FALSE if the statement is incorrect and identify the word/group of words that made the statement incorrect.

Question 1. The post-closing trial balance will have fewer accounts than then-adjusted trial balance.

Question 2. In the accounting cycle, closing entries are prepared before adjusting entries.

Question 3. After all closing entries have been entered and posted, the balance of the Income Summary account will be zero.

Question 4. A reversing entry is a journal entry which is the exact opposite of a related adjusting entry made at the end of the period.

Question 5. Closing entries clear income and expense accounts at the end of the period.

Question 6. Closing entries result in the transfer of profit or loss into the owner's Capital account.

Question 7. The final trial balance is called a post-closing trial balance.

Question 8. Nominal account balances are reduced to zero by closing entries.

Question 9. The post-closing trial balance contains asset, liability, withdrawal and capital accounts.

Question 10. The adjusting entries involving Rent Receivable and Salaries Payable could be reversed.