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CIAPTERS 4,5 kpictton 1. The ciosing entry process consiats of closing a. all asset and 1iability accounts b. out the owner's capital account. all permanent accounts 2. A post-closing trial balance wi1l show a, only permanent account balances, c. zero balances for al1 accounts. d. the amount of net income (or loss) for the period. 3. In order to close the owmer's drawing account, the a. income summary account should be debited, b. e. owner's capital account Bhuld be credited d. owner's capital account should be debited. income summary account should be credited. 4. Sales revenue less cost of goods sold is called gross profit. net profit c. net income d. marginal income. 5. After gross profit is calculated, operating expenses are deducted to determine a. grosa margin. b. net income c. gross profit on sales. d. net margin. 6. Which of the following expressions is incorrect? a. Gross profit operating expenses net income b. Sales cost of goods sold operating expenses net income c. Net income operating expenses gross profit d. Operating expenses cost of goods sold gross profit 7. Detailed records of goods held for resale are not maintained under a a. perpetual inventory system b. periodic inventory aystem. c. double entry accounting system d. single entry accounting aystem. 8. Under a perpetual inventory system, acquisition of merchandise for resale is debited to the a. Merchandise Inventory account. b. Purchases account. c. Supplies account. d. Cost of Goods Sold account