Question

question 9 (10 points)
which of the following are permanent accounts that roll over to the next accounting period?
assets
revenue
expenses
dividends

question 10 (10 points)
the income summary account is closed to which of the following accounts?
retained earnings
withdrawals
expenses
dividends

Explanation:

Define permanent and temporary accounts

Permanent accounts carry their balances forward into the next accounting period. These include assets, liabilities, and equity accounts. Temporary accounts, such as revenues, expenses, and dividends, are closed at the end of each period to reset their balances to zero. This relates to Account Classification.

Identify permanent accounts in Question 9

Among the choices in Question 9:

• Assets: Permanent account.
• Revenue: Temporary account.
• Expenses: Temporary account.
• Dividends: Temporary account.

Therefore, Assets is the correct choice.

Understand the closing process for Income Summary

The closing process transfers temporary account balances to permanent equity. First, revenues and expenses are closed to the Income Summary Account. Then, the net balance of the Income Summary Account (representing net income or loss) is closed to a permanent equity account. This is a key step in Closing Entries.

Identify the target account in Question 10

For a corporation, the Income Summary Account is closed directly to Retained Earnings (a permanent equity account). Among the choices:

• Retained Earnings: Correct target account.
• Withdrawals: Used for sole proprietorships, but not where Retained Earnings is an option.
• Expenses: Closed to Income Summary, not from it.
• Dividends: Closed directly to Retained Earnings.

Therefore, Retained Earnings is the correct choice.

Answer:

Question 9

• Assets (Correct answer)
• Revenue
• Expenses
• Dividends

Question 10

• Retained Earnings (Correct answer)
• Withdrawals
• Expenses
• Dividends