Question 5: When closing the books, if the balance in the Income Summary account is a credit, the company has experienced a(n): Answer: A. O net income B. net loss c. exact zero balance D. increase in sales over the previous year Question 7: What three financial statements are produced as part of the sixth step of the accounting cycle? Answer: A. Statement of Owner's Equity, Balance Sheet, Income Statement B. Balance Sheet, Income Statement, Statement of Cash Flows C. Cash Flow Forecast, Balance Sheet, Profit & Loss report D. Statement of Owner's Equity, Profit & Loss report, Statement of Cash Flows Question 8: The last four steps of the accounting cycle deal with: Answer: O making journal entries A. B. closing the books at the end of a fiscal period c. assembling source documents D. analyzing transactions Question 9: Which of these is NOT an adjusting entry made at the end of an accounting period? Answer: A. Updating Prepaid Rent by transferring the amount used to an expense account B. Transferring the balance from the Opening Balance Equity account C. Updating the income accounts by transferring the amount to Retained Earnings D. Updating the book value of fixed assets