Author Question: The income summary account is an account used only during the closing process. a. True b. False ... (Read 33 times)

HudsonKB16 · **on:** Jul 5, 2018

The income summary account is an account used only during the closing process.
a. True
b. False
Indicate whether the statement is true or false

Question 2

State whether each of the following statements is true or false. Explain the true statements and discuss why the false statements are false.

a. A debit always results in increasing the balance in an account.
b. As expenses increase, the equity of an entity will decrease.
c. Posting is the process of copying information from ledgers to journals.

verrinzo · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

True

Answer to Question 2

a. False. A debit decreases the balances of liability and some equity accounts
b. True. An expense is a cost of doing business and results in the creation of a liability or the use of an asset. An expense is the debit (reduction) side of equity.
c. False. A journal is a book of original entry. Posting is the process of transferring information from journals to ledgers.