Questions from College Accounting

Q: Closing entries are always prepared once a month. Agree or disagree

Closing entries are always prepared once a month. Agree or disagree? Why?

Q: Why must adjusting entries be journalized even though the formal statements have

Why must adjusting entries be journalized even though the formal statements have already been prepared?

Q: “Closing slows down the recording of next year’s transactions.” Defend

“Closing slows down the recording of next year’s transactions.” Defend or reject this statement with supporting evidence.

Q: What is the difference between temporary and permanent accounts?

What is the difference between temporary and permanent accounts?

Q: Explain the steps of closing for a merchandise company.

Explain the steps of closing for a merchandise company.

Q: How has computer software affected use of closing entries?

How has computer software affected use of closing entries?

Q: List the four steps of closing.

List the four steps of closing.

Q: What is the purpose of Income Summary and where is it located

What is the purpose of Income Summary and where is it located?

Q: How can a worksheet aid the closing process?

How can a worksheet aid the closing process?

Q: What accounts are usually listed on a post-closing trial balance

What accounts are usually listed on a post-closing trial balance?