Reference no: EM132771614

True or false

Problem 1: The post-closing trial balance will contain only real accounts.

Problem 2: The Income Summary account appears in the income statement.

Problem 3: The Income Summary account is used to close the income and expense accounts.

Problem 4: An expense account is closed with a debit to the expense account and a credit to Income Summary.

Problem 5: Post-closing trial balance tests the equality of the accounts after the adjustments and the closing entries are posted.

Problem 6: Reversing entries can be made for deferrals but not for accruals.

Problem 7: The purpose of reversing entries is to simplify the bookkeeping process.

Problem 8: During the closing process, revenues are transferred to the credit side of the Income Summary account.

Problem 9: Reversing entries are made to correct errors in the accounts.

Problem 10: There is sufficient information on a post-closing trial balance to prepare income statement.