Statement 1: Closing entries appear only on the worksheet and are never recorded in the general journal. Statement 2: Income Summary is closed with a debit to Income Summary and a credit to the owner's Withdrawals account. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect. Statement 1: Accounting periods should be of equal length to facilitate comparisons between periods. Statement 2: Applying accrual accounting results in a more accurate measurement of profit for the period than does the cash basis of accounting. Only Statement 1 is correct. Only Statement 2 is correct.

Statement 1: Closing entries appear only on the worksheet and are never recorded in the general journal. Statement 2: Income Summary is closed with a debit to Income Summary and a credit to the owner's Withdrawals account. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect. Statement 1: Accounting periods should be of equal length to facilitate comparisons between periods. Statement 2: Applying accrual accounting results in a more accurate measurement of profit for the period than does the cash basis of accounting. Only Statement 1 is correct. Only Statement 2 is correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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