Multiple Choice
The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. The result of this error is that:
A) before closing it, Income Summary will have a credit balance.
B) before closing it, Income Summary will have a debit balance.
C) the end of period capital will be understated.
D) the end of period capital will be overstated.
Correct Answer:
Verified
Correct Answer:
Verified
Q43: Closing entries are prepared:<br>A) to clear all
Q44: When closing the Income Summary account when
Q45: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7147/.jpg" alt=" " class="answers-bank-image d-block" rel="preload"
Q46: Determine the ending owner's equity of a
Q47: The Withdrawals account is closed to Income
Q49: All permanent accounts can be found:<br>A) on
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Q51: Closing entries will affect:<br>A) total assets.<br>B) Cash.<br>C)
Q52: When revenue is closed:<br>A) Owner's Capital will
Q53: Identify whether the entries below are an