46) When revenue is closed:

A) Owner’s Capital will be debited.

B) Income Summary will be debited.

C) Income Summary will be credited.

D) None of these are correct.

 

47) When the expenses are closed:

A) Owner’s Capital will be debited.

B) Income Summary will be debited.

C) Income Summary will be credited.

D) None of these are correct.

 

48) When the Withdrawals account is closed:

A) Owner’s Capital will be debited.

B) Income Summary will be debited.

C) Income Summary will be credited.

D) None of these are correct.

49) The Income Summary account debited and the expense accounts credited would be the result of:

A) closing the Income Summary account—there is a net income.

B) closing the revenue accounts.

C) closing the Income Summary accounts—there is a net loss.

D) closing the expense accounts.

 

50) The Capital account debited and the withdrawals credited would be the result of:

A) closing the Income Summary account—there is a net income.

B) closing the withdrawal account.

C) closing the Income Summary account—there is a net loss.

D) closing the expense accounts.

 

51) The revenue accounts debited and the Income Summary account credited would be the result of:

A) closing the Income Summary account—there is a net income.

B) closing the Income Summary account—there is a net loss.

C) closing the revenue accounts.

D) closing the expense accounts.

 

52) When closing the Income Summary account when there is a net income:

A) Capital would increase.

B) Capital would decrease.

C) Capital would remain the same.

D) None of these are correct.

53) When closing the Withdrawal account:

A) Capital would increase.

B) Capital would decrease.

C) Capital would remain the same.

D) None of these are correct.

 

54) The entry to close the Depreciation Expense account would cause:

A) the Capital account balance to increase.

B) the Capital account balance to decrease.

C) the Depreciation Expense account balance to decrease.

D) None of these are correct.

 

55) When closing the Income Summary account when there is a net loss:

A) Capital would increase.

B) Capital would decrease.

C) Capital would remain the same.

D) None of these are correct.

 

 

 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *