TRUE OR FALSE

25. A revenue account is closed with a credit to the revenue account and a debit 26. During the closing process, revenues are transferred to the credit side of the Income 27. During the closing process, expenses are transferred to the credit side of the Income 28. A reversing entry will include either a debit to a revenue account or a credit to an 46. The balances of all the accounts that appear on a balance sheet are the same on the 274 | Basic Financial Accounting and Reporting 2021 Edition by Prof. 24. Supplies Expense is a temporary account. Income Summary Summary account Summary account. expense account. 29. Reversing entries are never required. 30. Reversing entries can be made for deferrals but not for accruals. 31. Reversing entries are made to correct errors in the accounts. 32. The purpose of reversing entries is to simplify the bookkeeping process. 33. Adjusting entries are all dated as at the first day of the new accounting period. 34. Closing entries clear income and expense accounts at the end of the period. 35. Trial balances are prepared primarily to ensure that no entries have been omitted 36. In the accounting cycle, closing entries are prepared before adjusting entries. 37. In the accounting cycle, information from source documents is initially recorded in the journal. 38. Nominal account balances are reduced to zero by closing entries. 39. There is sufficient information on a post-closing trial balance to prepare a balance sheet. 40. There is sufficient information on a post-closing trial balance to prepare a statement of changes in equity. 41. If the post-closing trial balance does not balance, then the error(s) definitely occurred at some point during the closing process. 42. The adjusting entries involving Rent Receivable and Salaries Payable could be reversed. 43. The adjusting entries involving Depreciation Expense-Building and Supplies Expense could be reversed. 44. All nominal accounts must be closed before the Income Summary account can be closed. 45. The post-closing trial balance will have fewer accounts than the adjusted trial balance. adjusted trial balance as they are on a post-closing trial balance