5 1. Describe the difference between the types of accounts in the Balance sheet andthose in the Income Statement.2. What is the ordering in preparing the financial statements and why is thisimportant?Chapter 4 - Closing EntriesPlease explain the purpose of closing entries and which accounts are closed?

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College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter6: Financial Statements And The Closing Process

Section: Chapter Questions

Problem 3MC: Which of these is the first step in the closing process? (a) Close revenue account(s). (b) Close...

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Similar questions

Which of the following accounts should not appear on the post-closing trial balance? Select one: a. Accounts Payable b. Accounts Receivable c. Income Summary d. Office Equipment
Discussion
If a journal entry includes a debit or credit to the Cash account, it is most likely which of thefollowing?A. a closing entryB. an adjusting entryC. an ordinary transaction entryD. outside of the accounting cycle
Complete the statement: closing entries ________ A. Reflect the net income for the accounting period B. Are also posted in the subsidiary ledgers C. Involve all ledger accounts D. Are recorded in the special journals The process wherein transactions are recorded in the journal are transferred to the appropriate accounts in the general ledger and subsildiary ledgers, if appropriate, is called ___________ A. Ledgering B. Analyzing C. Posting D. Journalizing
The T-account is used to summarize which of thefollowing?a. Increases and decreases to a single account in theaccounting system.b. Debits and credits to a single account in the accountingsystem.c. Changes in specific account balances over a timeperiod.d. All of the above describe how T-accounts are used byaccountants.
C. Closing Entries Date Account Name Debit Credit
If a journal entry includes a debit or credit to the Cash account, it is most likely which of the following? A. a closing entry B. an adjusting entry C. an ordinary transaction entry D. outside of the accounting cycle
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
Which of these is the first step in the closing process? (a) Close revenue account(s). (b) Close expense accounts. (c) Close the Income Summary account. (d) Close the drawing account.
Why are closing entries and reversing entries important in accounting?
What do the terms 'debit' and 'credit' mean from an accounting perspective? What are the two primary rules of debits and credits? How do these impact the various types of accounts (assets, liabilities, expenses, revenues, distributions to owners, and equity)? How do they help ensure that an illogical journal entry cannot be made? Provide at least one example of an illogical entry. Why would this be illogical?
Which of the following accounts is closed by debiting the account? a. Purchases b. Sales returns and allowances c. Transportation in d. Purchase returns and allowances

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1. Describe the difference between the types of accounts in the Balance sheet and those in the Income Statement.