Question

After the closing process is complete, no balance can exist in any revenue, expense, Dividends, or Income Summary account.

Select one:

True

False

Net income for a period appears in all but which one of the following?

Select one or more:

a. Balance sheet.

b. Statement of Retained Earnings credit column of the work sheet.

c. Statement of retained earnings.

d. Income Statement debit column of the work sheet.

The post-closing trial balance may contain revenue and expense accounts.

Select one:

True

False

Which of the following statements is false regarding the revenue recognition principle?

Select one or more:

a. The accountant usually recognizes revenue before the seller acquires the right to receive payment from the buyer.

b. Under the installment basis, the gross margin recognized in a period is equal to the amount of cash received from installment sales times the gross margin percentage for the year of sale.

c. Revenue must be substantially earned before it is recognized.

d. Some small companies use the cash basis of accounting

The matching principle is fundamental to the accrual basis of accounting.

Select one:

True

False

Modifying conventions include all of the following except:

Select one or more:

a. Periodicity.

b. Materiality.

c. Cost-benefit.

d. Conservatism.

Answer 1

Q1. Statement True

Because, revenue, expense, Dividends are nominal accounts. so it should be closed at year end to make it zero. so after closure of those accounts, balance will be zero

Q2. Net income will appear in statement of retained earnings and income statement. in balance sheet net income for the period will not be disclosed separately. it will include in retained earnings.

So, answer is A. Balance Sheet

Q3. Statment False

Because after passing closing entries, revenues and expenses accounts will become zero. so, it not required to report in post closing trial balance