Reference no: EM132710789

Problem 1: Closing the temporary accounts at the end of each accounting period does all of the following except:

Multiple Choice

A. Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet.
B. Prepares the withdrawals account for use in the next period.
C. Brings the revenue and expense accounts to zero balances.
D. Has no effect on the owner's capital account.
E. Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.

Problem 2: The steps performed each reporting period in preparing financial statements, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:

Multiple Choice

A. Accounting period.
B. Operating cycle.
C. Accounting cycle.
D. Closing cycle.
E. Natural business year