retarded accounting

Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:

temporary accounts

Income Summary is a temporary account only used for the closing process.

true

The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.

true

The first step in the accounting cycle is to analyze transactions and events to prepare for journalizing.

true

Financial statements are typically prepared in the following order:

Income statement, statement of owner's equity, balance sheet.

A classified balance sheet:

Organizes assets and liabilities into important subgroups.

Interim financial statements refer to financial reports:

That cover less than one year, usually spanning one, three, or six-month periods.

Adjustments are necessary to bring an asset or liability account to its proper amount and also updates a related expense or revenue account.

True

Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and accrued items.

True

Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

closing entries

A company's fiscal year must correspond with the calendar year.

false

A work sheet is a substitute for the set of financial statements.

false

An unclassified balance sheet provides more information to users than a classified balance sheet.

false

Two main accounting principles used in accrual accounting are matching and full closure.

false

Assets, liabilities, and equity accounts are not closed; these accounts are called:

permanent accounts

Unearned revenue is reported in the financial statements as:

A liability on the balance sheet.

A trial balance prepared after adjustments have been recorded is called a(n):

Adjusted trial balance.

The difference between the cost of an asset and the accumulated depreciation for that asset is called

Book Value.

The asset section of a classified balance sheet usually includes:

Current assets, investments, plant assets, and intangible assets.

An adjusting entry often includes an entry to Cash.

False