Reference no: EM132809727

Problem 1: Which of the following could not possibly be a closing entry?

a. Debit Income Summary and credit Owner's Capital

b. Debit Owner's Capital and credit Owner's Withdrawals

C. Debit Income Summary and credit Owner's Withdrawals

d. Debit Owner's Capital and credit Income Summary

Problem 2: In preparing closing entries, which of the following columns of the work sheet are the most helpful?

a. Adjustments columns

b. Adjusted Trial Balance columns

C.Income Statement columns

d. Balance Sheet columns

Problem 3: The primary objective of reversing entries is to

a. correct errors.

b. Simplify the bookkeeping associated with accruals from the prior period.

b. transfer the balance of the expense accounts to the c. Owner's Capital account and set the accounts equal to zero.

d. place the expenses for the current period in the proper accounts.