Exam 6: Financial Statements and the Closing Process

Match the terms with the definitions. -A balance sheet in which the assets are on the left and the liabilities and the owner's equity sections are on the right.

After posting the adjusting entries, the balance of the depreciation expense account should agree with the amount shown on the income statement.

Which of the following steps of the accounting cycle are in the correct order?

The journal entry to close revenue accounts includes

Owner's equity can be increased through

The Account Title and Balance Sheet columns of the work sheet provide all of the information necessary to prepare the statement of owner's equity.

A form of balance sheet that lists the liabilities and the owner's equity sections below the assets section is called the

The heading for a balance sheet includes the name of the business, the title of the statement, and a period of time.

What is the correct sequence for closing the temporary accounts?

After the accounts are closed and the journal entries have been posted, which of the following accounts would have a balance?

A balance sheet that groups similar items is called a(n)

When recording closing entries in the general journal, which of the following is written in the Description column?

Revenues and expenses are temporary accounts and are closed at the end of the accounting period.

To close an expense account with a debit balance, debit the account for its balance and credit the income summary account.

After the closing entries are journalized and posted, which of the following accounts would NOT have a balance?

Match the terms with the definitions. -Cash and assets that will be converted into cash or consumed within either one year or the normal operating cycle of the business, whichever is longer.

After the closing entries have been posted, which of the following accounts would NOT have a balance?

To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted, prepare the

Closing entries are made in the journal and posted to the ledger accounts.

The end-of-period work sheet is completed after adjusting entries have been recorded and posted.