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Each individual expense account is debited when closing, and the total of all the expense

Each individual expense account is debited when closing, and the total of all the expense accounts is transferred to Income Summary.

 

79) The balance in Income Summary after posting all revenues and expenses for the period is equal to net income/loss.

 

80) A nominal account is the same as a permanent account.

 

81) A real account is the same as a permanent account.

 

82) After posting adjusting entries, the temporary accounts will be set back to zero.

 

83) Closing entries will update the Capital account to the same figure that is on the balance sheet for that date.

 

84) Income Summary does not have a normal balance.

 

85) The goal of closing is to clear all temporary accounts and update Capital.

 

86) The first entry to close accounts is to debit Revenue and credit Income Summary.

87) Closing Entries are necessary before completing the Financial Statements.

 

88) The Withdrawals account is closed to Income Summary.

 

89) When closing Income Summary, the balance is transferred to the Capital account.

 

90) All revenue, expenses, and withdrawals will have zero balances before closing.

 

91) Income Summary is a permanent account.

 

92) Income Summary is closed to Capital.

Dec 06 2019 View more View Less

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