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.
Notes receivable due in 390 days appear on the
balance sheet in the noncurrent assets section
Accumulated Depreciation appears on the
balance sheet in the property, plant, and equipment section
Unearned Fees appear on the
balance sheet as a current liability
Which one of the fixed asset accounts listed below will not have a related contra asset account?
Prepaid insurance is reported on the balance sheet as a
The income statement is prepared from
either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet
The first item appearing on the statement of retained earnings is
the beginning balance of retained earnings
The statement of retained earnings should be prepared
after the income statement and before the balance sheet
The income statement should be prepared
before the retained earnings statement and balance sheet
The balance sheet should be prepared
after the income statement and the retained earnings statement
The retained earnings statement begins with the beginning balance followed by
adding investments plus net income less dividends
The income statement will present
revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last
The classified balance sheet will show which asset subsections?
current assets and property, plant, and equipment
The classified balance sheet will show which liability subsections?
current liabilities and long-term liabilities
Debts listed as current liabilities are those that
will be paid in less than one year
Stockholders’ equity is
added to liabilities and the two are equal to assets
Balance sheet accounts
are called real accounts
On which financial statement will Income Summary be shown?
no financial statement
The income summary account is also called
the clearing account
After posting the second closing entry to the income summary account, the balance will be equal to
the net income or net loss for the period
Which of the following account groups are nominal accounts?
Rent Revenue, Fees Earned, Miscellaneous Expense
Which of the accounts below would be closed by posting a debit to the account?
Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?
Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?
The entry to close the appropriate insurance account at the end of the accounting period is
debit Income Summary; credit Insurance Expense
The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be:
Dec. 31 Fees Earned 750
Rent Revenue 175
Income Summary 925
Rent Revenue 175
Income Summary 925
Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet?
Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?
Which of the items below does not appear on the end-of-period spreadsheet?
the closing enteries
Which of the following is not an essential part of the accounting records?
the end-of-period spreadsheet
An end-of-period spreadsheet includes columns for
The end-of-period spreadsheet
is used to summarize account balances and adjustments for the financial statements
The natural business year is a
fiscal year that ends when business activities are at their lowest point
Of the following steps of the accounting cycle, which step should be completed last?
an adjusted trial balance is prepared
The accounting cycle requires three trial balances be done. In what order should they be prepared?
un-adjusted, adjusted, postclosing