|
Notes Receivable due in 350 days appear on the |
balance sheet in the current assets section |
|
The Statement of Owner’s Equity should be prepared |
after the income statement and before the balance sheet |
|
The Balance Sheet should be prepared |
after the income statement and the statement of owner’s equity |
|
Balance sheet accounts |
are called real accounts |
|
The Income Statement will include the following accounts |
Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed last |
|
Which of the accounts below would be closed by posting a debit to the account? |
Fees Earned |
|
When preparing the statement of owner’s equity, the beginning capital balance can always be found |
in the general ledger |
|
The natural business year |
is a fiscal year that ends when business activities are at its lowest point. |
|
What is the last account that should be listed in the Post Closing Trial Balance? |
Capital account |
|
What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance? |
The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts |
|
Which of the following accounts will be closed to the Capital account at the end of the fiscal year? |
-Income Summary |
|
Closing entries are dated in the journal as of |
the last day of the accounting period, although they are actually journalized after the end of the accounting period |
|
Owner’s Equity is |
added to liabilities and the two are equal to assets |
|
The accounting cycle requires three trial balances be done. In What order should they be prepared? |
Unadjusted, adjusted, post-closing |
|
The post-closing trial balance differs from the adjusted trial balance in that it |
does not include income statement accounts |
|
On which financial statement will Income Summary be shown? |
No financial statement |
|
The Income Statement is prepared form: |
either the adjusted trial balance or the income statement columns of the work sheet |
|
In the accounting cycle, the last step is |
preparing a post-closing trial balance |
|
The fiscal year |
Ordinarily begins on the first day of a month and ends on the last day of the following twelfth month |
|
The Journal entry to close the Fees Earned, $750, and Rent Revenue,$175, accounts on December 31st during the closing process would be: |
Dec, 31 Fees Earned 750 Rent Revenue 175 Income Summary 925 |
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