b. credit side of the Income Statement columns and the debit side ofthe Balance Sheet columns.c. debit side of both the income Statement and the Balance Sheetcolumns.d. credit side of both the income Statement and the Balance Sheetcolumns.9. An important purpose of closing entries is toa. adjust the accounts in the ledgerb. set nominal account balances to zero at the start of the nextperiod.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 describesthe proper sequence in the accounting cycle?a. Source documents, ledger, journal, financial statementsb. Journal, source documents, ledger, financial statementsC. Source documents, journal, ledger, financial statementsd. Ledger, source documents, journal, financial statements11. Closing entries willa. 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 theothers?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 affecttotal liabilitiesb. the Cash accountC. total assets.d. the Owner's Capital account.If no adjustments are needed for a particular entity, itsa. post-closing trial balance will be identical to its trial balance.b. adjusted trial balance will be identical to its post-closing trial14.balance.c. trial balance will be identical to its adjusted trial balance.d. trial balance, adjusted trial balance, and post-closing trialbalance will be identical15. Which of the following accounts is not closed during the closingprocess?a. Income Summaryb. Owner's Capitalc. Commissions Revenuesd. Owner's Withdrawals16. Which of the following could not possibly be a closing entry?a. Debit Income Summary and credit Owner's Capitalb. Debit Owner's Capital and credit Owner's WithdrawalsC. Debit Income Summary and credit Owner's Withdrawalsd. Debit Owner's Capital and credit Income Summary

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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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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