Accounting- Ch 4 Exam
The income statement will present
revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last
Owner's equity is
subtracted from liabilities and the net amount is equal to assets
Use the adjusted trial balance for Stockton Company to answer the question that follow. Determine the owner's equity ending balance for the period. $19,510 $19,936 $16,090 $20,660
19,936 (I guessed on this one)
Use the adjusted trial balance for Stockton Company below to answer the question that follow. Determine the current assets. a.$21,930 b.$9,330 c.$23,030 d.$8,630
B. 9,330
Use the adjusted trial balance for Stockton Company below to answer the question that follow. Determine the net income (loss) for the period. a.net loss $5,670 b.net loss $790 c.net income $3,580 d.net income $9,250
C. net income $3,580
Accrued expenses are ordinarily listed on the balance sheet as current assets. T/F
False
Office Equipment is an example of a current asset account. T/F
False
The amount of the net income for a period appears on both the income statement and the balance sheet for that period. T/F
False
The usual presentation of the statement of owner's equity is (1) Beginning capital, (2) Net income or loss, (3) Drawing, (4) Owner's contributions, (5) Ending capital. T/F
False
Which of the following account groups are nominal accounts?
Rent Revenue, Fees Earned, Miscellaneous Expense
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
Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets. T/F
True
Prepaid Insurance is an example of a current asset. T/F
True
The drawing account is a temporary account. T/F
True
The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet. T/F
True
The income summary account is closed to the owner's capital account. T/F
True
When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column. T/F
True
Accumulated Depreciation appears on the
balance sheet in the property, plant, and equipment section
Prepaid insurance is reported on the balance sheet as a
current asset
The classified balance sheet will show which liability subsections?
current liabilities and long-term liabilities