Colla 9) Closing journal entries are posted A) before posting the adjusting entries. B) throughout the accounting period. C) after preparing the financial statements. D) after preparing the post-closing trial balance. 10) Which of the following entries will be necessary to close the Insurance Expense account at the end of the year? A) Debit Income Summary and credit Insurance Expense B) Debit Insurance Expense and credit Income Summary C) Debit Insurance Expense and credit Owner's Name, Capital D) Debit Owner's Name, Capital and credit Insurance Expense 11) The process by which companies produce their financial statements for a specific period is called the A) opening process. B) closing process C) accounting cycle. D) operating cycle 12) What is the result if the amount of net income for the year is less than the amount of the owner's withdrawals? A) The balance in cash decreases. B) Owner's Name, Capital decreases. C) The balance in cash increases. D) Owner's Name, Capital increases. 13) What does "2/10" mean, with respect to "credit terms of 2/10,n/30"? A) Interest of 10% will be charged if the invoice is paid after 2 days. B) Interest of 2% will be charged if the invoice is paid after 10 days from the date of the invoice. C) A discount of 10% will be allowed if the invoice is paid within 2 days from the date of the invoice. D) A discount of 2% will be allowed if the invoice is paid within 10 days from the date of the invoice. - Use the following information from Up-to-Date Merchandisers for the month of July, 2019 to answer question 14: Sales revenue $460,000 300,000 Cost of goods sold Selling expenses Sales discounts forfeited 85.000 20,000 Administrative expenses 15,000 Interest revenue 5,000 14) The amount of operating income for July, 2019 is A) $90,000 B) $60,000 C) $140,000 D) $125,000