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