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