chapter four test 🤝

statement of owner's equity

Owner withdrawals would appear on the

current asset

Prepaid insurance is reported on the balance sheet as a

the net income (net loss) for the period

After posting the first closing entry to the owner's capital account, the balance will be increased (decreased) by

depreciation expense

All of the following accounts will appear on the post-dosing trial balance except

be carried over to the Credit column of the balance sheet on the work sheet.

Net income on the Income Statement section of the work sheet will

analyze and record the transactions in the journal

The first step of the accounting cycle is to

capital

The following accounts are closed at the end of the accounting period except

before the statement of owner's equity and balance sheet

The income statement should be prepared

revenues less expenses (ordered largest to smallest amounts) with miscellaneous expense listed last

The income statement will present

a debit to Capital account and a credit to Drawing account

The journal entry required to close the Drawing account is

prepare a post-closing trial balance

The last step of the accounting cycle is to

d. All of these choices are correct.

The spreadsheet can be used to prepare

adding investments plus net income less withdrawals

The statement of owner's equity begins with the beginning balance followed

after the income statement and before the balance sheet

The statement of owner's equity should be prepared

Revenue

Which account will not appear on the post-closing trial balance?

Fees Earned

Which of the accounts below would be closed by posting a debit to the account?

Service Revenue

Which of the following accounts should be closed to the capital account at the end of the year?

Fees Earned

Which of the following accounts will be debited in the closing entry at the end of the year?

Prepaid Insurance

Which of the following accounts will not be closed to the capital account at the end of the year?

All real accounts are closed at the end of the period.

Which of the following is not true about closing entries?

entry Reverse entries; adjusting entry

are the exact opposite of the related

are called real accounts

Balance sheet accounts

balance sheet in the property, plant, and equipment section

Accumulated Depreciation appears on the

the last day of the accounting period, although they'are actually journalized after the end of the accounting period

Closing entries are dated in the journal as of

True

Companies use reverse entries to avoid error of omission

income statement

Revenue accounts appear on the

the Debit column of the balance sheet on the work sheet.

The Cash balance on the adjusted trial balance will be carried over to

Excel.

The Microsoft product most commonly used to create a spreadsheet is

liquidity

The ability to convert assets into cash is known as

after the income statement and the statement of owner's equity

The balance sheet should be prepared

current assets and property, plant, and equipment

The classified balance sheet will show which asset subsections?

the beginning balance of owner's equity

The first item appearing on the statement of owner's equity is

Cash

What is the first account that should be listed in the post-closing trial balance?

The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

natural business year.

When a corporation adopts a fiscal year that ends when business activities have reached the lowest point in its annual operating cycle, such a fiscal year is called the

in the general ledger

When preparing the statement of owner's equity, the beginning capital balance can always be found