Statement 1: Closing entries appear only on the worksheet and are never recorded in the general journal. Statement 2: Income Summary is closed with a debit to Income Summary and a credit to the owner's Withdrawals account. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect. Statement 1: Accounting periods should be of equal length to facilitate comparisons between periods. Statement 2: Applying accrual accounting results in a more accurate measurement of profit for the period than does the cash basis of accounting. Only Statement 1 is correct. Only Statement 2 is correct.

Statement 1: Closing entries appear only on the worksheet and are never recorded in the general journal. Statement 2: Income Summary is closed with a debit to Income Summary and a credit to the owner's Withdrawals account. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect. Statement 1: Accounting periods should be of equal length to facilitate comparisons between periods. Statement 2: Applying accrual accounting results in a more accurate measurement of profit for the period than does the cash basis of accounting. Only Statement 1 is correct. Only Statement 2 is correct.

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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Which statement is false about reversing entries? a. Reversing entries are required as part of the closing process. b. Recording reversing entries simplifies the recording of next period's transactions. C. Reversing entries are recorded on the first day of the subsequent accounting period. O d. A reversing entry is the opposite of the adjusting entry to which it relates.
Which of the following best distinguishes adjusting entries from closing entries? a. In adjusting entries, debits must equal credits; in closing entries, debits should be greater than credits. b. Adjusting entries happen before preparing financial statements; closing entries occur after preparing financial statements. c. Closing entries cannot be journalized using information technology, while adjusting entries can. d. Adjusting entries involve only balance sheet accounts; closing entries involve only income statement accounts
Statement 1: In case there is a credit balance in a customer's account, such amount shall not affect the total balance of the accounts receivable to be presented in the asset section of the statement of financial position.Statement 2: A credit balance in a customer's account is caused by overcollection of amounts receivable from customers which will result to a liability to be presented in the noncurrent section of statement of financial position.Which statement(s) is(are) correct?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
49) ____________ is a mistake or error committed by an accountant during the process of recording and posting the transactions. a. Adjusting entry b. Closing entry c. Accounting error d. None
Under the direct write-off method, uncollectible accounts expense is recognized Multiple Choice O ① in an adjusting entry at the end of the accounting period. when an account is determined to be uncollectible. when the allowance account has a zero balance. in a closing entry at the end of the accounting period.
Which of the following entries properly closes a temporary account? Select one: a. Income Summary XX Cash b. C. Debit Credit Expense Accumulated Depreciation XX Income Summary Income Summary d. e. XX Retained Earnings XX Dividends Debit Credit Debit Credit XX Debit Credit Income Summary XX Revenue XX XX Debit Credit XX XX
For each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.d. The debit side of a journal entry was recorded in theaccounts, but the credit side was not.
What of the following is an incorrect statement? a) The final step in the accounting cycle is to close the temporary accounts. TESTER D Ob) A primary goal of accrual accounting is to appropriately match expenses with revenues. d) All of the statements are correct. c) Conservatism guides accountants to select the alternative that produces the highest amount of net income.
Journalize the entries for the following transactions: a. Sold merchandise for cash, 25400. The cost of the merchandise was 15240. (Record the sale first.) b. Sold merchandise on account, 10610. The cost of merchandise sold was 6370. (Record the sale first.) c. Sold merchandise to customers who used MasterCard and Visa, $117,060. The cost of the merchandise sold was $70,240. (Record the sale first.) d. Sold merchandise to customers who used American Express, $40,890. The cost of the merchandise sold was $24,530. (Record the sale first.) e. Paid $7,870 to National Clearing House Credit Co. for service fees for processing Mastercard, Visa, and American Express sales.
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