The Trial Balance

The Income statement is:

Revenues minus Expenses equal Net Income

Which statement best reflects the trial balance format?

A trial balance shows total amounts for assets, liabilities, and equity, revenue and expenses

Which of the following is true?

A T-account is a system of calculating account balances. The T-account method of recording transaction follow the same rule of debit and credit of accounts as journalizing.

Reviewing the trial balance, which statement DOES NOT reflect the overall format for the trial balance and she balance sheet?

A trial balance presents data in debit and credit format, but a balance sheet does not

Assets are usually classified on the balance sheet in the order of liquidity (those that can be quickly converted in to cash). Select the proper presentation of assets on the balance sheet

Current assets; long-term investments; property, plant, and equipment; and intangible assets.

Suppose a business had $10,000 in its cash account. Then, the business made payments of $135 for a utility bill and paid $175 for business supplies on the same day. The business' only revenues for the day came from two customers who came in for consultations. The customers each paid $250 cash. Is there a debit or credit balance and what is the amount?

Debit balance/$10,190

Suppose a business had $5,000 in its cash account. Then, the business made payments of $125 for a utility bill and paid $200 for business supplies on the same day. The business' only revenues for the day came from two customers who came in for products. The customers each paid $250 cash. Is there a debit or credit balance and what is the amount?

Debit balance/$5,175

Retained earnings provides information on the amount of capital retained within the company. Select the statement below that is NOT correct regarding retained earnings?

Retained earnings account show how the company manages its assets

Financial statements are prepared in a very specific order once the trial balance is completed. From the information below, select the preparation that is NOT correct?

The last financial statement prepared is typically the statement of retained earnings.

Information in the firm's financial statement comes from the

ledger

When preparing the trial balance, reference columns in the ledger are

necessary for discovering discrepancies.

The primary purpose of the trial balance and its use is ____________________.

to ensure that the individual amounts on the debit and credit sides are correct