1. Which of the following could not possibly be a closing entry? a. Debit Income

Question

1. Which of the following could not possibly be a closing entry? a. Debit Income Summary and credit Retained Eamings b. Debit Retained Earnings and credit Dividends c. Debit Retained Earnings and credit Income Summary d. Debit Income Summary and credit Dividends 8 sccounts probably would contain a larger dollar amount in the adjusted trial balance than in the trial balance? a. Prepaid Insurance b. Cash c. Unearned Revenue d. Accumulated Depreciation 3. The best definition of assets is the a cash owned by the company b. collection of resources belonging to the company and the claims on these resources c. resources belonging to a company having future benefit to the company d owners' investment in the business. 4. An overstatement of beginning inventory results in a. an overstatement of net income. b. no effect on the period's net income. an understatement of net income. d. a need to adjust purchases. 5. When a sale on credit takes place, a. liabilities will increase b. assets will be unaffected c. one asset account will increase and another will decrease. d. a revenue account will increase.

Explanation / Answer

1) C Debit Retained Earnings

Credit Income Sumary

2) A. Prepaid Insurance

3) C Resorces belonging to a Company having future benifit to a company.

4) C Understatement of Net Income

5) D A Revenue account will increase.

6) B Board of Directors

7) D An agreement to perform a service at a future date.

8 C Revenue

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