Exam 4: The Accounting Cycle

Which of these titles would appear in the Income Statement columns of the end-of-period spreadsheet?

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

Working capital is the ratio of the current assets of a business to its current liabilities.

Which of the following is not true about closing entries?

A post-closing trial balance contains only asset and liability accounts.

Use this end-of-period spreadsheet to answer the questions that follow.​ -The entry to close the dividends account would be

It is not necessary to post the closing entries to the general ledger.

The post-closing trial balance differs from the adjusted trial balance in that it does not

Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Wages Expense 870 Wages Payable 870 A)Journal entries B)Adjusting journal entries C)Closing journal entries

Balance sheet accounts are not considered real accounts.

Accrued expenses are ordinarily listed on the balance sheet as current assets.

A net loss appears on the end-of-period spreadsheet in the

Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet?

Prepaid Insurance is an example of a current asset.

Which of the accounts below would be closed by posting a debit to the account?

Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs: Journalize the entries to close the appropriate accounts.

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the end-of-period spreadsheet would

Cross-referencing is useful in assuring that the debits and credits are in balance.