1.The closing entry for revenue accounts includes a debit to Retained Earnings a
ID: 2560030 • Letter: 1
Question
1.The closing entry for revenue accounts includes a debit to Retained Earnings and a credit to all revenue accounts. True or false.
2.The employer records amounts deducted from employee payroll as liabilities until it pays them to the appropriate organizations. True or false.
3.Receiving cash in advance from customers increases the Service Revenue account. True or false.
4.Non-current assets are assets that provide a benefit to a company for more than one year. True or false.
5.Under the allowance method, the write-off of an actual bad debt is recorded with a debit to the Allowance for Uncollectible Accounts and a credit to Accounts Receivable. True or false.
Explanation / Answer
1 False, the closing entry for revenue accounts includes a debit to revenue accounts and a credit to Income summary 2 True, the employer records amounts deducted from employee payroll as liabilities until it pays them to the appropriate organizations 3 False, Receiving cash in advance from customers does not increase the Service Revenue account 4 True, .Non-current assets are assets that provide a benefit to a company for more than one year 5 True, Under the allowance method, the write-off of an actual bad debt is recorded with a debit to the Allowance for Uncollectible Accounts and a credit to Accounts Receivable
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.