1. Which of the following statements about the closing process is correct?

A Closing entries are recorded at the end of each reporting period which could be monthly, quarterly

or annually.

B After closing entries are posted, the balances of the income statement accounts will be zero.

C Closing entries are made to zero out the balances of the permanent accounts on the balance sheet.

D After closing entries are posted, the only temporary account with a balance is the Dividends account.

2. Which account below is a temporary account?

A Note Payable

B Deferred Revenue

C Accounts Receivable

D Depreciation Expense

3. Assuming that revenues exceed expenses, which of the following correctly

indicates the structure of the journal entry that is used to close revenue and

expense accounts?

A Debit Retained Earnings, credit Expenses, and credit Revenues

B Debit Revenues, credit Expenses, and credit Retained Earnings

C Debit Revenues, debit Expenses, and credit Retained Earnings

D Debit Expenses, credit Revenues, and credit Retained Earnings