1. When the balance in the Income Summary account is a debit, the company has:

A.incurred a net income.

B.made an error in their closing entries.

C.incurred a net loss.

D. had more revenue than expenses.

2. The amount for withdrawals, to be used on the Statement of Owner's Equity, would be obtained from:

A.the worksheet in the income statement credit column.

B.the worksheet in the balance sheet credit column.

C.the worksheet in the balance sheet debit column.

D.the worksheet in the income statement debit column.

3. Which of the financial statements is prepared last from the worksheet?

A.Statement of Owner's Equity

B.Balance Sheet

C.Income Statement

D.None of these answers are correct.

4. A petty cash fund is set up:

A.for the owner to withdraw money for personal use conveniently.

B.to pay for small expenses.

C.to pay for office supplies only.

D.to pay for business meeting expenses only.