4) The Income Summary account shows debits of $20,000 and credits of $22,000. This is a result of*

2 points

A) net income of $2,000.

B) net loss of $2,000.

C) net income of $38,000.

D) net loss of $38,000.

45) After all the closing entries have been posted the Income Summary account will*

2 points

A) have a zero balance.

B) have a balance the same as the capital account.

C) have a balance the same as the cash account.

D) vary from company to company.

46) The Depreciation Expense account is closed to the Owner's Capital account.*

2 points

True

False

47) Real accounts are those accounts with balances that are brought forward to the next accounting period.*

2 points

True

False

48) Each individual revenue account is debited when closing, and the total of all the revenue accounts is transferred to Income Summary.*

2 points

True

False

49) A nominal account is the same as a permanent account*

2 points

True

False

50) When closing Income Summary, the balance is transferred to the Capital account.*

2 points

True

False