A balance sheet that places the assets above the liabilities and equity is called a(n):
answer
Report form balance sheet.
question
Adjusting entries
answer
Affect both income statement and balance sheet accounts.
question
The difference between the cost of an asset and the accumulated depreciation for that asset is called
answer
book value
question
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is
answer
accrual basis accounting
question
The total amount of depreciation recorded against an asset over the entire time the asset has been owned
answer
Is referred to as accumulated depreciation.
question
Closing the temporary accounts at the end of each accounting period does all of the following except:
answer
Has no effect on the retained earnings account.
question
Closing the temporary accounts at the end of each accounting period does all of the following
answer
Brings the revenue and expense accounts to zero balances.
Prepares the dividends account for use in the next period.
Serves to transfer the effects of these accounts to the retained earnings account on the balance sheet.
Causes retained earnings to reflect increases from revenues and decreases from expenses and dividends.
question
The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750. The Adjustments columns shows a credit of $425 for supplies used during the period. The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is
answer
$325 debit.
question
On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $4,800 and no adjustments had been made previously. The adjusting entry required on December 31 is
Palmer Company is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, has prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is
answer
Close temporary accounts
question
Accounting Cycle Steps
answer
1. Analyze business transactions- Source documents are checked for accuracy, and transactions are analyzed into debit and credit parts.
2. Journalize the transactions- Transactions, from information on source documents, are recorded in a general journal.
3. Post to ledger accounts- Journal entries are posted to the general ledger.
4. Prepare a trial balance- A work sheet, including a trial balance, is prepared from the general ledger.
5. Journalize and post adjusting entries-
6. Prepare an adjusted trial balance-
7. Prepare financial statements-Financial statements are prepared from the work sheet.
8. Journalize and post closing entries-Adjusting and closing entries are posted to the general ledger.
9. Prepare a post-closing trial balance----A post-closing trial balance of the general ledger is prepared.
question
A work sheet is
answer
A work sheet is a tool used by accountants to preview financial results before formal financial statements are prepared. A work sheet can be prepared electronically using a spreadsheet program.
Haven't found what you need?
Search for quizzes and test answers now
Quizzes.studymoose.com uses cookies. By continuing you agree to our cookie policy
