When net income is exactly zero, one of the usual closing entries can be avoided.
Correct Answer:
Verified
Q9: The Withdrawals account bypasses the Income Summary
Q13: Income Summary is closed with a debit
Q20: Depreciation Expense-Buildings is a permanent account.
Q22: There is sufficient information on a post-closing
Q23: The balances of all the accounts that
Q26: During the closing process, expenses are transferred
Q27: Reversing entries can be made for deferrals
Q28: The post-closing trial balance will have fewer
Q29: The post-closing trial balance will contain only
Q36: Owner's Capital is closed by transferring the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents