1. Question 20 If the Income Summary account has a debit balance before it is closed, the company has net income for the period.
2. True
3. False

2 points

Question 21

1. What is the correct order of the following steps in the accounting cycle?ADJ-Adjusting entries
2. FS-Financial Statements
3. ATB-Adjusted trial balance
4. PCTB-Post-closing trial balance
5. CLO-Closing entries
6. TB-Trial balance
8. A.ADJ, TB, ATB, CLO, PCTB, FS
9. B.TB, ADJ, ATB, FS, CLO, PCTB
10. C.CLO, TB, FS, PCTB, ADJ, ATB
11. D.TB, ADJ, ATB, CLO, PCTB, FS

2 points

Question 22

1. In a classified balance sheet, current assets usually are listed in order of their liquidity.
2. True
3. False

2 points

Question 23

1. Expenses are extended into the Income Statement columns as debits, revenues as credits.
2. True
3. False

2 points

Question 24

1. After closing entries have been posted, balances should appear only in balance sheet accounts.
2. True
3. False
4. Question 27 Examples of current liabilities are 6-month notes payable, salaries payable, and unearned revenue.
5. True
6. False

2 points

Question 28

1. An Interest Revenue account containing a balance of $1,000 is closed by an entry debiting Interest Revenue and crediting Income Summary for $1,000.
2. True
3. False

2 points

Question 29

1. The post-closing trial balance will show asset, liability, stockholders' equity, revenue, and expense accounts.
2. True
3. False