The first step in closing is to debit _____ accounts and credit _____ account.

a. Income Summary, Drawing

b. Revenue, Income Summary

c. Revenue, Liabilities

d. Income Summary, Capital

A business firm can reverse _______ entries at the beginning of the next period.

a. external entries

b. closing

c. internal

d. adjusting

To record a reversing entry of the accrued adjustment for salaries & wages, what account is debited, and what account is credited?

a. Wages Expense, Payroll Taxes Exp.

b. Wages Payable, Wages Expense

c. Wages Expense, Wages Payable

d. Payroll Taxes Exp., Wages Payable

Current ratio is computed by dividing current _____ by current _____.

a. Liabilities, Assets

b. Liabilities, Owner's Equity

c. Assets, Owner's Equity

d. Assets, Liabilities