FINAL EXAM REVIEW CHAPTER 3
Which of the following financial statements reports that total assets are equal to total liabilities plus total owner's equity?
Balance sheet
Where does net income appear on a worksheet?
Net income appears in the balance sheet credit column and in the income statement debit column.
Which of the following are NOT included in a post-closing trial balance?
Revenues and expenses
The income statement section of the worksheet includes ________.
Service Revenue and Utilities Expense
The entries that transfer the revenue, expense, and Owner, Withdrawals balances to the Owner, Capital account to prepare the company's books for the next period are called ________ entries.
closing
Martinville Company earned revenues of $ 12,000 and incurred expenses of $ 7,500. Martinville withdrew $ 3,500 for personal use. What is the balance in the Income Summary account prior to closing net income or loss to the Martinville, Capital account?
credit balance of $ 4,500 12,000 - 7,500 = 4,500
Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year, are called ________ assets.
current
A list of the accounts and their balances at the end of the period, after journalizing and posting the closing entries, is called ________.
post - closing trial balance
The worksheet helps accountants to ________.
prepare the financial statements
Which of the following are temporary accounts that are closed at the end of the year?
revenues, expenses, and Owner, Withdrawals
The net income of Hendley Company for the year is $ 35,000. Withdrawals during the year were $ 43,000. No new capital contributions were made during the year. Which of the following statements is true?
$35,000 -- $43,000 = -8,000 Hendley, Capital account decreases by $ 8,000.
