1)The purpose of the year-end closing process is to bring the temporary accounts to a zero balance. True False

2) To close the Owner's Capital account, you should debit the Owner's Capital and credit Retained Earnings.True False

3) The closing entry for salaries will include a credit to the Salaries Expense account for the total amount appearing the general ledger account. True False

4) In manual accounting, if a business has a net income, the Income Summary account will carry a credit balance before closing. True False

5) In manual accounting, the Owner's withdrawal account is never closed.True False

6) If the Medical Supplies account has a balance of $2,000.00 before adjustments and $500.00 is the balance after adjustment, then:

The Medical Supplies was debited for $1,500.00

The Medical Supplies Expense was debited for $1,500.00

The Medical Supplies Expense was credited for $500.00

The Medical Supplies was credited for $500.00

The Medical Supplies Expense was debited for $500.00

7) If the Salaries Expense account has a balance of $10,000.00 before adjustments and $12,000.00 balance after adjustments, then:

Salaries Expense was debited for $2,000.00

Salaries Expense was credited for $2,000.00

Salaries Payable was debited for $2,000.00

Salaries Expense was debited for $10,000.00

Salaries Payable was credited for $10,000.00

8) The balance on the Prepaid Insurance account before adjustments is $36,000.00. If the balance on the Prepaid Insurance account after adjustment is $30,000.00, then:

The Prepaid Insurance account was debited for $6,000.00

The Insurance Expense account was credited for $6,000.00

The Prepaid Insurance account was debited for $30,000.00

The Prepaid Insurance account was credited for $6,000.00

The Insurance Expense account was debited for $30,000.00

9) If the bookkeeper failed to record an accrued Interest Income of $5,000.00, then:

Net Income is overstated

Net Income is understated

Total Liabilities is overstated

Total Liabilities is understated

Total Assets is overstated

10) The balance on the Office Supplies account is $4,000.00 before adjustments. If the Office Supplies used for the period is $1,600.00, then:

Office Supplies was debited for $1,600.00

Office Supplies Expense was debited for $1,600.00

Office Supplies was credited for $2,400.00

Office Supplies Expense was credited for $2,400.00

Office Supplies Expense was debited for $2,400.00