Chapter 5 Learning Objective 5 Question Title * 1. Which of the following is true of the effect of net loss on financial statements? It decreases the cash account balance. It increases expenses. It decreases the owner's capital account balance. It decreases accounts payable. OK Question Title * 2. Financial statements prepared during the fiscal year for periods of less than twelve months are called temporary statements. internal statements. interim statements. nominal statements. external statements. OK Question Title * 3. Assume a company has a net income that exceeds the owner's drawing for the current year. The owner's Capital account will have a zero balance after the closing entries are completed. will increase. will decrease. will remain the same as the beginning balance. It is impossible to tell with the information provided. OK Question Title * 4. A net loss always increases liabilities. True False OK Question Title * 5. The balance of Wages Payable will normally appear on the balance sheet. True False OK DONE