Response to the following questions:
1. List the steps in the closing procedure in the correct order.
2. What is the purpose of closing entries? Consider the consequence of forgetting to make closing entries.
3. What is the purpose of the Income Summary account? How does it relate to the revenue and expense accounts?
6. What is the purpose of the post-closing trial balance? What is the difference between a trial balance and a post-closing trial balance?
7. When would revenue and expenses be recorded if a business used a cash basis of accounting? If a business used an accrual basis of accounting?