Chap 3 Study - 100(27 out of 27 correct Responses to...

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100% (27 out of 27 correct) Responses to questions are indicated by the symbol. 1.In the closing process all of the revenue and expense account balances are transferred to the: A.Capital account.B.Income Summary account.C.Retained Earnings account.D.Dividends account. All revenue and expense account balances are transferred to the Income Summary account. 2.All of the following accounts are used with a perpetual inventory system except: No Purchases account is used because the purchases are debited directly to the Inventory account. 3.The post-closing trial balance consists only of: Only real accounts are included on the post-closing trial balance. 4.If the entry to close Income Summary to Retained Earnings includes a credit to Income Summary: If the Income Summary has a debit balance, the company has incurred a net loss because expenses exceeded revenue. 5.Which one of the following accounts would have an amount listed in the credit column of a post-closing trial balance? A.Merchandise Inventory.B.Purchases.C.Accounts Payable.D.Sales Revenue. The balance in Accounts Payable would be listed in the credit column of a post-closing trial balance.
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