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9. An important purpose of closing entries is to a. adjust the accounts in the ledger b. set nominal account balances to zero at the start of the next period. c. set real account balances to zero at the start of the next period. d. help in preparing financial statements.

9. An important purpose of closing entries is to a. adjust the accounts in the ledger b. set nominal account balances to zero at the start of the next period. c. set real account balances to zero at the start of the next period. d. help in preparing financial statements.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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b. credit side of the Income Statement columns and the debit side of the Balance Sheet columns. c. debit side of both the income Statement and the Balance Sheet columns. d. credit side of both the income Statement and the Balance Sheet columns. 9. An important purpose of closing entries is to a. adjust the accounts in the ledger b. set nominal account balances to zero at the start of the next period. c. set real account balances to zero at the start of the next period. d. help in preparing financial statements. 10. Which of the following sequences of documents or records describes the proper sequence in the accounting cycle? a. Source documents, ledger, journal, financial statements b. Journal, source documents, ledger, financial statements C. Source documents, journal, ledger, financial statements d. Ledger, source documents, journal, financial statements 11. Closing entries will a. increase the Owner's Capital balance. b. decrease the Owner's Capital balance. C. not affect the Owner's Capital balance. d. either increase or decrease the Owner's Capital balance. 12. Which of the following accounting cycle steps comes before the others? The financial statements are prepared. b. Closing entries are recorded and posted. c. Source documents are analyzed. d. Adjusting entries are recorded and posted. 13. Closing entries ultimately will affect total liabilities b. the Cash account C. total assets. d. the Owner's Capital account. If no adjustments are needed for a particular entity, its a. post-closing trial balance will be identical to its trial balance. b. adjusted trial balance will be identical to its post-closing trial 14. balance. c. trial balance will be identical to its adjusted trial balance. d. trial balance, adjusted trial balance, and post-closing trial balance will be identical 15. Which of the following accounts is not closed during the closing process? a. Income Summary b. Owner's Capital c. Commissions Revenues d. Owner's Withdrawals 16. Which of the following could not possibly be a closing entry? a. Debit Income Summary and credit Owner's Capital b. Debit Owner's Capital and credit Owner's Withdrawals C. Debit Income Summary and credit Owner's Withdrawals d. Debit Owner's Capital and credit Income Summary
Transcribed Image Text:b. credit side of the Income Statement columns and the debit side of the Balance Sheet columns. c. debit side of both the income Statement and the Balance Sheet columns. d. credit side of both the income Statement and the Balance Sheet columns. 9. An important purpose of closing entries is to a. adjust the accounts in the ledger b. set nominal account balances to zero at the start of the next period. c. set real account balances to zero at the start of the next period. d. help in preparing financial statements. 10. Which of the following sequences of documents or records describes the proper sequence in the accounting cycle? a. Source documents, ledger, journal, financial statements b. Journal, source documents, ledger, financial statements C. Source documents, journal, ledger, financial statements d. Ledger, source documents, journal, financial statements 11. Closing entries will a. increase the Owner's Capital balance. b. decrease the Owner's Capital balance. C. not affect the Owner's Capital balance. d. either increase or decrease the Owner's Capital balance. 12. Which of the following accounting cycle steps comes before the others? The financial statements are prepared. b. Closing entries are recorded and posted. c. Source documents are analyzed. d. Adjusting entries are recorded and posted. 13. Closing entries ultimately will affect total liabilities b. the Cash account C. total assets. d. the Owner's Capital account. If no adjustments are needed for a particular entity, its a. post-closing trial balance will be identical to its trial balance. b. adjusted trial balance will be identical to its post-closing trial 14. balance. c. trial balance will be identical to its adjusted trial balance. d. trial balance, adjusted trial balance, and post-closing trial balance will be identical 15. Which of the following accounts is not closed during the closing process? a. Income Summary b. Owner's Capital c. Commissions Revenues d. Owner's Withdrawals 16. Which of the following could not possibly be a closing entry? a. Debit Income Summary and credit Owner's Capital b. Debit Owner's Capital and credit Owner's Withdrawals C. Debit Income Summary and credit Owner's Withdrawals d. Debit Owner's Capital and credit Income Summary
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