41. Net income for a period will be overstated if accrued salaries are not recorded at the end of the accounting period.
42. An unadjusted trial balance is a listing of accounts and their balances prepared adjustments are recorded.
43. In preparing statements from the adjusted trial balance, the balance sheet must be prepared first.
44. An expense account is normally closed by debiting Income Summary and crediting the expense account.
45. The dividends account is normally closed by debiting it.
46. The Income Summary account is closed to the retained earnings account.
47. When expenses exceed revenues, there is a net loss and the Income Summary account would have a credit balance.
48. The Income Summary account is used to close the permanent accounts at the end of an accounting period.
49. A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
50. It is acceptable to record prepayment of expenses as debits to expense accounts.