Quiz 4: General Accounting and End-Of-Period Procedures: Service Business

Business

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Statement: "Bank reconciliations should be performed on a(n) _____ basis." Answer: Monthly Justification: The checking account should be reconciled with the bank statement to guarantee the balances are equal.

Statement: "To close a period, you must _____" Answer: (B) Enter a closing date in the company preferences for accounting Justification: There are four closing entries in accounting so as to close the books for a period. They include closing of all income and expenses accounts, drawing account, and transferring the net income or net loss to owner's capital account.