1. What would be the consequence of skipping the completion of closing entries?

a. The adjusting entries could not be completed

b. It would not be easy to compare results of different accounting periods

c. The financial statements could not be completed

d. The daily transactions would not be correct

2. When closing Wage Payable, the balance is transferred to:

a. INCOME SUMMARY

b. LIABILITIES

c. THE ACCOUNT IS NOT CLOSED

d. ASSETS

3. When closing Fees Earned, the balance is transferred to

a. THE ACCOUNT IS NOT CLOSED

b. RETAINED EARNINGS

c. REVENUES

d. ASSETS

4. When closing Prepaid Insurance, the balance is transferred to:

a. REVENUES

b. ASSETS

c. INCOME SUMMARY

d. THE ACCOUNT IS NOT CLOSED

5. After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $83,900 and 77,500, respectively. What is the amount of the net income or net loss for the period?

a. $77,500 net loss

b. $6,400 net income

c. $6,400 net loss

d. $83,900 net income