Funda 2 (Closing and Perpetual vs. Periodic)

How do you close an entry for revenue?

• Close revenue account to expenses

• Close revenue account to income summary

• Close revenue account to owner's capital

• Close revenue account to drawing

FOB shipping point can be recorded as...

• Freight out

• Freight in

Capital in post closing trial balance is computed by adding the investment and net income and subtracted by (a)   .

If my revenue is P50,000 and may expenses is P15,000 my other income is 30,000. My closing entry for income summary is P (a)   .

Closing entry ultimately will affect

• total liabilities

• the cash account

• total assets

• the owner's capital account

Which of the following does not belong to the group?

• Asset

• Liability

• Drawing

• cash

Probably the last account to be listed on a post-closing trial balance would be.

• Salaries payable

• Salaries expense

• Owner's Capital

• Income summary

The closing entries for salary expense, with a balance of P240,000 is

• Salaries expense P240,000

  Income summary P240,000

• Income summary P240,000

  Salaries Expense P240,000

A credit term of 2/10, n/30 means that 2% will be given if payment is made within 10 days from the end of the month.

• True

• false

The two main inventory system is..

(a)