ACCT 311 Second

Posting is the process of transferring items entered in a general journal to the:

worksheet. trial balance. general ledger. financial statements.

Which of the following is typically the first step in the accounting cycle?

Posting to the general ledger. Preparing reversing entries. Recording adjustments to the accounts. Journalizing a transaction.

Under accrual basis accounting, if the balances in both accounts receivable and accounts payable increase during the year

the increase in both accounts receivable and accounts payable balances would result in an increase in cash for the period the increase in the accounts receivable balance would result in an increase in cash for the period while the increase in the accounts payable balance would result in a decrease in cash for the period. the increase in the accounts receivable balance would result in a decrease in cash for the period while the increase in the accounts payable balance would result in an increase in cash for the period. the increase in both accounts receivable and accounts payable balances would result in a decrease in cash for the period.

Which of the following accounts appears on the income statement of a merchandising firm but not a service firm?

Depreciation expense. Net income. Salaries and wages expense. Cost of goods sold.

Once a company has prepared an adjusted trial balance it is ready to prepare financial statements. Which financial statement is prepared first, second, then third?

First the income statement is prepared, then the retained earnings statement is prepared, finally the balance sheet is prepared. First the retained earnings statement is prepared, then the balance sheet is prepared, finally the income statement is prepared. First the balance sheet is prepared, then the retained earnings is prepared, finally the income statement is prepared. First the income statement is prepared, then the balance sheet is prepared, finally the retained earnings statement is prepared.