Chapter 11

Question 1

shows the results of the business operation in a particular
accounting period.

Answer 1

Income Statement

Question 2

Types of Income Statement for Merchandising

Answer 2

Single Step Form
Multiple Step

Question 3

total expenses incurred by the business in an accounting
period are deducted from the total revenues.

Answer 3

Single Step Form

Question 4

shows the details of the revenues from sales, cost of sales,
operating expenses and other income and expenses.

Answer 4

Multiple Steps

Question 5

Closing and Reversing of Entries

Answer 5

1. Debit the income account and credit the Revenue and Expense Summary
   account.
2. Credit the expense accounts and debit the Revenue and Expense Summary
   account.
3. Get the difference of the Revenue and Expense Summary account.