Reference no: EM132785371

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 contain only real accounts.

Question 2. The Income Summary account appears in the income statement.

Question 3. The Income Summary account is used to close the income and expense accounts.

Question 4. An expense account is closed with a debit to the expense account and a credit to Income Summary.

Question 5. Post-closing trial balance tests the equality of the accounts after the adjustments and the closing entries are posted.

Question 6. Reversing entries can be made for deferrals but not for accruals.

Question 7. The purpose of reversing entries is to simplify the bookkeeping process.

Question 8. During the closing process, revenues are transferred to the credit side of the Income Summary account.

Question 9. Reversing entries are made to correct errors in the accounts.

Question 10. There is sufficient information on a post-closing trial balance to prepare an income statement.