Exam 4: Completing the Accounting Cycle

The balance sheet should be prepared

The trial balance may be listed on the work sheet instead of being prepared separately.

Cash, Accounts Payable, and Capital Stock are real accounts and do not get closed at the end of the period.

A post-closing trial balance should be prepared before the financial statements are prepared.

Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

The work sheet

The majority of businesses end their fiscal year on December 31.

Which of the following accounts ordinarily appears in the post-closing trial balance?

Beachside Realty rents condominiums and furnishings. It's adjusted trial balance at December 31, 2011, is as follows: Prepare the entry required to close the dividends account at the end of the period.

All companies must use a calendar year as their fiscal year.

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 are $38,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Identify which of the following accounts should be closed with a debit or a credit to Income Summary at the end of the fiscal year. If it is not closed to Income Summary, mark as n/a. 1. Utilities Payable 2. Utilities Expense 3. Supplies 4. Supplies Expense 5. Fees Earned 6. Unearned Fees 7. Accounts Receivable 8. Dividends 9. Capital Stock 10. Accumulated Depreciation - Equipment 11. Depreciation Expense - Equipment 12. Equipment 13. Prepaid Insurance 14. Insurance Expense 15. Retained Earnings

Capital Stock and Dividends are reported in the stockholders' equity section of the balance sheet.

Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short time before they expire.

Prepare an income statement and a retained earnings statement for the month ended August 31, 2014, from the following T accounts of Marley Company.

The following is the adjusted trial balance for Nadia Company prepared at the end of Nadia's fiscal year. Prepare an income statement, retained earnings statement, and classified balance sheet.

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

The work sheet and the financial statements both require dollar signs.