Question Two (8 Marks) Indicate true or false in each of the following and correct the false ones: Tor F Statements After closing entries have been journalized and posted, all temporary accounts in the ledge should have zero balances. After the second closing entry, the income summary account is equal to the net income or (loss) for the period. Required fields are marked *. D) an unadjusted trial balance. D. They must be made after the adjusting entries but before the reversing entries. A) an adjusted trial balance. A) It takes place only at the end of an accounting period. Prepare a post-closing trial balance. Without proper journal entries, companies’ financial statements would be inaccurate and a complete mess. could be monthly, quarterly,or annually. Which of the following statements is true of the accounting cycle? A) It takes place only at the end of an accounting period. The Balance Sheet. v 4 Sort (adjusted) trial balance amounts to financial statements. There are four closing entries that update the owner’s equity account. D. Each word is first shown as it is commonly misspelled O D. It is a process by which financial statements for a period are produced. Which of the following statements regarding closing journal entries is correct? c. All real accounts are closed at the end of the period. By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly. Get an answer for 'Can you please whether the following statements about accounting and closing entries are true or false? Your email address will not be published. b. v 2 Enter adjustments. Recursive programs are efficientIII. The closing entries serve to transfer the balances out of certain temporary accounts and into permanent ones. The closing entries will be a review as the process for closing does not change for a merchandising company. Which of the following is not true about closing entries? !J Reed about !tis v 1 Enter unadjusted trial balance. posted, the only temporary account with a balance is the dividends C) It ignores the beginning balances of accounts. This resets the balance of the temporary accounts … True B. Journalize and post the adjusting entries. d.None of these statements are true. Prepare a Trial Balance; IV. B. By closing the revenue account on Jan 31, you'd move all of that money over to your Income Summary account. Closing entries are recorded at the end of each reporting period which could be monthly, quarterly or annually. And now your revenue account (Service Revenue or Sales) will be at zero at the beginning of Feb 1. B. v 3 Prepare adjusted trial balance. b) Closing expense accounts increase total stockholders' equity. Question: 1) Which of the following statements is true? & 2. Your email address will not be published. Equal totals in a trial balance guarantees that no errors were made in the recording process. A. Definitions and pronunciations are usually included. This resets the balance of the temporary accounts to zero, … Which of the following statements is true of the accounting cycle? 1. C. All real accounts are closed at the end of the period. c. All real accounts are closed at the end of the period. All of the statements are true. After the second closing entry, the income summary account is equal to the net income or (loss) for the period. A) Closing Journal Entries Are Recorded At The End Of Each Recording Period Which Could Be Monthly, Quarterly,or Annually. The investment account balance on the parent's books will be eliminated. Reversing entries are required by Generally Accepted Accounting Principles. O C. It involves preparation of adjusting entries after the closing entries. C. There are four closing entries that update the stockholders' equity account. Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business Transactions on Financial Statements; 16. A. After the adjusting and closing entries have been recorded and posted, the general ledger accounts that appear on the balance sheet have no balances. 2-"Freight-out" or delivery costs associated with sales should be included in the cost of goods sold amount. Which of the following statements regarding timing issues associated with the closing entries is true? a) Closing the revenue account increases total stockholders' equity. entries made at the end of an accounting period to zero out all temporary accounts and transfer their balances to permanent accounts The purpose of the closing entry is to reset the temporary account balances to zero on the general ledger, the record-keeping system for a … After closing entries are posted, the balances of the income statement accounts will be zero. 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C. reversing entries are posted, the balances of accounts regarding reversing entries are often. Accounts do as similar to All other journal entries is true? I is WRONG dso measures in days the!

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