26) Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?
A) Debit Accumulated depreciation and credit Income summary
B) Debit Depreciation expense and credit Income summary
C) Debit Income summary and credit Accumulated depreciation
D) Debit Income summary and credit Depreciation expense
27) Which of the following accounts does NOT close at the end of the period?
A) Accumulated depreciation
B) Depreciation expense
C) Dividends
D) Sales revenues
28) Which is NOT an example of a temporary account?
A) Wages expense
B) Accumulated depreciation
C) Service revenue
D) Utilities expense
29) Which of the following accounts will be closed by debiting the Income summary?
A) Depreciation expense
B) Accounts payable
C) Service revenue
D) Accumulated depreciation
30) Which of the following accounts will be closed by crediting the Income summary?
A) Service revenue
B) Depreciation expense
C) Accounts payable
D) Accumulated depreciation
31) Which of the following accounts will be closed by debiting the Income summary?
A) Dividends
B) Service revenue
C) Accounts receivable
D) Salary expense
32) Revenues total $10,200. Expenses total $7,300. Dividends paid total $2,600. What is the balance in the Income summary account prior to closing net income or loss to the Retained earnings account?
A) Credit balance of $300
B) Debit balance of $2,900
C) Credit balance of $2,900
D) Balance of $0
33) Revenues total $10,200. Expenses total $7,300. Dividends paid total $2,600. What is the balance in the Income summary account after closing net income or loss to the Retained earnings account?
A) Debit balance of $2,900
B) Credit balance of $300
C) Credit balance of $2,900
D) Balance of $0
34) Which of the following accounts are temporary accounts that must be closed at the end of the year?
A) Assets, liabilities and dividends
B) Revenues, expenses and dividends
C) Assets, liabilities and retained earnings
D) Revenues, expenses and retained earnings
35) To what account is the balance in the Income summary closed?
A) The Income summary is closed to the Dividends account.
B) The Income summary is closed to the Net income account.
C) The Income summary is closed to the Retained earnings account.
D) The Income summary is closed to the Revenue account.
