Answer true or false to the following statements.

1. All companies journalize and post closing entries before the end of their calendar year.

2. Adjustments are journalized before preparing the worksheet.

3. Closing entries can only clear permanent accounts.

4. Income Summary is a temporary account.

5. Interim reports can be prepared from worksheets.

6. To clear expenses in the closing process, a compound entry is appropriate.

7. Withdrawals is a temporary account.

8. Income Summary helps update withdrawals.

9. Accumulated Depreciation is a temporary account.

10. Cash, Repairs Expense, and Accounts Payable need to be closed at the end of the period.

11. Closing entries do not relate to the worksheet.

12. Revenue is closed by a credit.

13. Expenses are placed on the debit side of the Income Summary account.

14. A post-closing trial balance is very similar to the ending balance sheet.

15. Accumulated Depreciation never has to be adjusted.

16. Interim reports are always prepared monthly.

17. A post-closing trial balance is prepared before adjustments are journalized.

18. Income Summary is shown on the balance sheet.

19. The process of closing entries will help update Owners Capital.

20. An increase in Income Summary is a credit.

21. The income statement contains debit and credit columns.

22. Closing updates permanent accounts only.

23. The completion of financial reports means that the Capital account in the ledger has been updated.

24. Withdrawals is closed to Income Summary.