Chapter 4
The following accounts are closed at the end of the accounting period except _____.
capital
All of the following accounts will appear on the post-closing trial balance except _____.
depreciation expense
A business's yearly accounting period is called the
fiscal year.
Revenue accounts appear on the _____.
ncome statement
The last step of the accounting cycle is to _____.
prepare a post-closing trial balance
Owner withdrawals would appear on the _____.
statement of owner's equity
The Cash balance on the adjusted trial balance will be carried over to
the Debit column of the balance sheet on the work sheet.
The spreadsheet can be used to prepare
the income statement. the balance sheet. the statement of owner's equity. All of these choices are correct. Answer: All of these choices are correct
10
A post-closing trial balance is prepared
6
Adjusting entries are journalized and posted to the ledger.
4
Adjustment data are assembled and analyzed.
7
An adjusted trial balance is prepared.
5
An optional end-of-period spreadsheet is prepared
3
An unadjusted trial balance is prepared.
1
Transactions are analyzed and recorded in the journal.
2
Transactions are posted to the ledger.
The first step of the accounting cycle is to _____.
analyze and record the transactions in the journal
During the accounting period, cash was debited for $4,000, $3,000, and $1,000. Cash was also credited for $3,000, $500, and $100. The beginning balance of Cash was a $10,000 debit. What would be the ending balance for Cash in the general ledger?
$14,400
Building
Property, plant, and equipment
Which account will not appear on the post-closing trial balance?
Revenue
The journal entry required to close the Drawing account is _____.
a debit to Capital account and a credit to Drawing account
Notes Payable (due in five years)
Long-term liability
Why should investors and others be careful in interpreting partial-year reports for companies that use the natural business year for their fiscal year?
The operations of the companies vary significantly throughout the fiscal year.
Net income on the Income Statement section of the work sheet will
be carried over to the Credit column of the balance sheet on the work sheet.
9
Closing entries are journalized and posted to the ledger
Prepaid Rent
Current Asset
Unearned Service Fees
Current liability
The Microsoft product most commonly used to create a spreadsheet is
Excel.
Why do companies base their fiscal year on a natural business cycle?
It's at the low point in the operating cycle and provides time to analyze operations and prepare financial statements.
8
Financial statements are prepared.