Accounting Mod 4

Which of the following is not an essential part of the accounting records?

The work sheet

A summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year end.

$15,000

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

$6,400 net income

Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $7,200 and recorded it as a prepaid expense. Which of the following amounts would be recorded for insurance expense during the adjusting process at the end of Amir's first month of operations on March 31st?

$600

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

False

Closing entries are entered directly on to the work sheet.

False

All income statement accounts will be closed at the end of the period.

True

The income summary account is also known as the clearing account.

True

The income summary account is also known as the clearing account. -T/F

True

The post-closing trial balance will generally have fewer accounts than the trial balance.

True

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column. - T/F

True

A net loss appears on the work sheet in the

debit column of the Balance Sheet columns

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

the company has a net loss of $3,415 for the period