before closing entries are posted to the ledger accounts.
only if an error in the accounts is detected
9) In preparing closing entries
each expense account will be credited.
each revenue account will be credited.
the dividends account will be debited.
the dividends account will be debited if there is net income for the
period
10) Intangible assets are
listed as a long-term investment on the balance sheet.
listed under current assets on the balance sheet.
not listed on the balance sheet because they do not have physical
substance.
long-lived assets that are often very valuable
11) Correcting entries are made
after closing entries.
at the beginning of an accounting period.
at the end of an accounting period.
whenever an error is discovered
12) Income Summary has a credit balance of $17,000 after closing
revenues and expenses. The entry to close Income Summary is
credit Income Summary $17,000, debit Retained Earnings $17,000.