Question

In: Accounting

The owner's drawing account is closed to the Income Summary account in order to properly determine...

The owner's drawing account is closed to the Income Summary account in order to properly determine net income (or loss) for the period. *

True

False

Closing entries are made to close the permanent accounts. *

True

False

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure. *

True

False

The owner's drawing account is a permanent account whose balance is carried forward to the next accounting period. *

True

False

To close net income to owner's capital, Income Summary is debited and Owner's Capital credited. *

True

False

In one closing entry, Owner's Drawing is credited and Income Summary is debited. *

True

False

The post-closing trial balance will contain only owner's equity statement accounts and balance sheet accounts. *

True

False

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ekkarill92 answered 2 years ago
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