accounting questions!

QUESTION 1 In a merchandising business, the income summary balance is transferred to the: retained earnings. income summary. capital trial balance. QUESTION 2 To close the income summary to the retained earnings and transfer the net profit, which account should be credited? Income Summary Retained Earnings Withdrawals Owner's Capital QUESTION 3 The first step in the accounting cycle is: preparing a post-closing trial balance. collecting and verifying source documents analyzing each business transaction. O preparing a trial balance. QUESTION 4 To close the income summary account of a corporation with a not loss, the balance is closed into the account which caused a debit retained earning account with credit. retained earning account with deblt. account which caused with credit. QUESTION 5 Match the terms in Column I with the descriptions in Column II. post-closing trial balance income summary - collecting and verifying source documents the basic accounting cycle - transferring from a journal to ledger A. zero balance B. first step in the accounting cycle C. last step in the accounting cycle D. posting E the same for all businesses