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Multiple Choice

In preparing closing entries
a. each revenue account will be credited.
b.each expense account will be credited.
c. the Retained Earnings account will be debited if there is net income for the period.
d. the Dividends account will be debited.

The closing entry process consists of closing
a. all asset and liability accounts.
b. out the Retained Earnings account.
c. all permanent accounts.
d. all temporary accounts .

Wagner Company's goods in transit at December 31 include sales made
(1) FOB destination.
(2) FOB shipping point and purchases made FOB shipping point.
(3) FOB destination and purchases made FOB shipping point.
(4) FOB shipping point.

Which items should be included in Wagner's inventory at December 31?
a. (2) and (3).
b. (1) and (4).
c. (1) and (3).
d. ( 2 ) and ( 4 ).

Solution Preview

1. b.each expense account will be credited.
Since expense accounts have debit balance, these will be credited to close the accounts

2.d. all temporary accounts .
All temporary accounts are ...

Solution Summary

The solution explains some multiple choice questions relating to closing process and inventories

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