Reference no: EM132785576

Question 1. Some entities adjust their accounts and close their books only on an annual basis.For these firms,

Option a. worksheets may be prepared on an interim basis.

Option b. worksheets are not needed.

Option C. worksheets are prepared only on an annual basis.

Option d. worksheets are not prepared.

Question 2. Closing entries reduce the following type of accounts to a zero balance at the end of the period.

Option a. income and expenses

Option b. income summary

Option C. withdrawals

Option d. all of the above

Question 3. The closing entry for Salaries Expense, with a balance of P240,000 is

Option a. Salaries Expense 240,000

Income Summary 240,000

Option b. Salaries Expense 240,000

Salaries Payable 240,000

Option C. Income Summary 240,000

Salaries Expense 240,000

Option d. Salaries Payable 240,000

Salaries Expense 240,000