Answer the following statements true (T) or false (F)
1. The Dividends account is normally closed by debiting it.
2. After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $4,000 debit balance. This result implies that Cleaver earned a net income of $4,000.
3. After posting the entries to close all revenue and expense accounts, Marker Company's Income Summary account has a credit balance of $6,000, and its Dividends account has a debit balance of $2,500. These balances indicate that net income for the current accounting period amounted to $3,500.
4. When there is a net loss, the Income Summary account would have a credit balance.
5. The Income Summary account is used to close the permanent accounts at the end of an accounting period.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
5. FALSE
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A. divisional B. simple C. matrix D. functional
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A) the internal rate of return is lower than the holding period return. B) the holding period return. is lower than the internal rate of return. C) it is not possible to calculate the internal rate of return. D) the internal rate of return equals the holding period return.