question

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

answer

The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.

question

Notes receivable due in 390 days appear on the

answer

balance sheet in the noncurrent assets section

question

Accumulated Depreciation appears on the

answer

balance sheet in the property, plant, and equipment section

question

Unearned Fees appear on the

answer

balance sheet as a current liability

question

Which one of the fixed asset accounts listed below will not have a related contra asset account?

answer

land

question

Prepaid insurance is reported on the balance sheet as a

answer

current asset

question

The income statement is prepared from

answer

either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet

question

The first item appearing on the statement of retained earnings is

answer

the beginning balance of retained earnings

question

The statement of retained earnings should be prepared

answer

after the income statement and before the balance sheet

question

The income statement should be prepared

answer

before the retained earnings statement and balance sheet

question

The balance sheet should be prepared

answer

after the income statement and the retained earnings statement

question

The retained earnings statement begins with the beginning balance followed by

answer

adding investments plus net income less dividends

question

The income statement will present

answer

revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last

question

The classified balance sheet will show which asset subsections?

answer

current assets and property, plant, and equipment

question

The classified balance sheet will show which liability subsections?

answer

current liabilities and long-term liabilities

question

Debts listed as current liabilities are those that

answer

will be paid in less than one year

question

Stockholders' equity is

answer

added to liabilities and the two are equal to assets

question

Balance sheet accounts

answer

are called real accounts

question

On which financial statement will Income Summary be shown?

answer

no financial statement

question

The income summary account is also called

answer

the clearing account

question

After posting the second closing entry to the income summary account, the balance will be equal to

answer

the net income or net loss for the period

question

Which of the following account groups are nominal accounts?

answer

Rent Revenue, Fees Earned, Miscellaneous Expense

question

Which of the accounts below would be closed by posting a debit to the account?

answer

fees earned

question

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

answer

service revenue

question

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

answer

prepaid insurance

question

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

answer

income summary

question

The entry to close the appropriate insurance account at the end of the accounting period is

answer

debit Income Summary; credit Insurance Expense

question

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be:

answer

Dec. 31 Fees Earned 750 Rent Revenue 175 Income Summary 925

question

Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet?

answer

Service Revenue

question

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

answer

Prepaid Insurance

question

Which of the items below does not appear on the end-of-period spreadsheet?

answer

the closing enteries

question

Which of the following is not an essential part of the accounting records?

answer

the end-of-period spreadsheet

question

An end-of-period spreadsheet includes columns for

answer

adjusting entries

question

The end-of-period spreadsheet

answer

is used to summarize account balances and adjustments for the financial statements

question

The natural business year is a

answer

fiscal year that ends when business activities are at their lowest point

question

Of the following steps of the accounting cycle, which step should be completed last?

answer

an adjusted trial balance is prepared

question

The accounting cycle requires three trial balances be done. In what order should they be prepared?

answer

un-adjusted, adjusted, postclosing

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