Reference no: EM132785567

True or false

Question 1: When profit or loss is exactly zero, one of the usual closing entries will be avoided.

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

Question 3: Temporary accounts are also known as real accounts.

Question 4: During the closing process, revenues are transferred to the credit side of the Income Summary account.

Question 5: During the closing process, expenses are transferred to the credit side of the Income Summary.

Question 6: A reversing entry will include either a debit to a revenue account or a credit to an expense account.

Question 7: Reversing entries are never required.

Question 8: Reversing entries can be made for deferrals but not for accruals.

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

Question 10: The purpose of reversing entries is to simplify the bookkeeping process.

Question 11: Adjusting entries are all dated as at the first day of the new accounting period.