A temporary account in the ledger used for closing revenues and expenses is A) capital.
A temporary account in the ledger used for closing revenues and expenses is
C) income summary.
D) net income.
62) The purpose of closing entries is to
A) adjust the accounts in the ledger.
B) set nominal account balances to zero to begin the next period.
C) set real account balances to zero to begin the next period.
D) help in preparing financial statements.
63) Information for closing entries comes from
A) the worksheet.
B) the trial balance.
C) the post-closing trial balance.
D) the source documents.
64) A nominal account is the same as
A) a real account.
B) a temporary account.
C) an unusual account.
D) a permanent account.
65) The Income Summary account shows debits of $20,000 and credits of $22,000. This is a result of
A) net income of $2,000.
B) net loss of $2,000.
C) net income of $38,000.
D) net loss of $38,000.
66) Income Summary is a temporary account located in the chart of accounts under
C) Owner's Equity.
67) After all the closing entries have been posted the Income Summary account balance will:
A) have a zero balance.
B) have a balance the same as the capital account.
C) have a balance the same as the cash account.
D) vary from company to company.