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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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
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.
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