Reference no: EM132714631

Problem 1: When closing entries are made:

Multiple Choice

A. All ledger accounts are closed to start the new accounting period.
B. All temporary accounts are closed but permanent accounts are not closed.
C. All asset accounts are closed but liability accounts are not closed.
D. All permanent accounts are closed but temporary accounts are not closed.
E. All balance sheet accounts are closed.

Problem 2: Closing the temporary accounts at the end of each accounting period does all of the following except:

Multiple Choice

A. Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet.
B. Prepares the withdrawals account for use in the next period.
C. Brings the revenue and expense accounts to zero balances.
D. Has no effect on the owner's capital account.
E. Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.