Exam 4: Completion of the Accounting Cycle

The heading for a post-closing trial balance has a date line that is similar to the one found on

Reversing entries are an optional part of the accounting cycle.

The current ratio

A liability is classified as a current liability if it is to be settled within one year from the balance sheet date or in the company's normal operating cycle.

Closing entries are journalized in the

Which of the following steps in the accounting cycle may be performed more frequently than annually?

A post-closing trial balance should be prepared

In preparing closing entries

If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity

After the closing entries are posted to the accounts, a trial balance will show balances only in the Balance Sheet accounts.

Which of the following will be affected by a reclassification of assets from current to non-current?

Intangible assets are

Common Canadian practice shows current assets as the first items listed on a classified balance sheet.

When preparing a worksheet, the profit (or loss) for the period

Assuming that there is a loss for the period, which column will the loss balance be entered in?

A post-closing trial balance will show

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

The owner's drawings account is a permanent account whose balance is carried forward to the next accounting period.

The relationship between current assets and current liabilities is important in evaluating a company's

In order to close the Owner's Drawings account, the