Exam 4: Completing the Accounting Cycle

of various columns from the work sheet are shown below. What is net income or loss? Income Statement Balance Sheet Debit Credit Debit Credit \ 6,800 \ 9,500 \ 7,400 \ 4,700

Which of the following columns are generally found on a work sheet?

The second step in the work sheet process is:

Which of the following is TRUE if the total of the Adjusted Trial Balance debit column exceeds the total of the Adjusted Trial Balance credit column by $12,000?

Which of the following accounts will be closed by debiting the Income Summary?

what order should the categories below be placed on a post-closing trial balance? I. Capital II. Assets III. Liabilities

financial statements can be prepared directly from the Adjusted Trial Balance, which makes completion of the last four columns of the work sheet optional.

In which of the columns of the work sheet would the Accumulated depreciation account be found?

debit total and the credit total in the Adjusted Trial Balance columns of the work sheet should equal each other.

debit total and the credit total in the Income Statement columns of the work sheet should equal each other.

that begin with analyzing source documents and conclude with the post-closing trial balances are called the:

Accumulated depreciation and Depreciation expense are the two accounts in which we adjust a fixed asset's value at the end of each accounting cycle.

range for debt ratio would be indicative of a company approaching having too high a debt ratio?

In which of the columns of the work sheet would the Depreciation expense account be found?

which of the columns of the work sheet would the Retained earnings account be found?

of the following statements is a TRUE statement concerning the work sheet?

The following is the Balance Sheet for Green Landscaping: Greene Landscaping Balance Sheet December 31,2008 Assets Liabilities Cash \ 15,000 Accounts payable \ 22,000 Accounts receivable 30,000 Salaries payable 12,000 Supplies 4,000 Unearned service revenue 25,000 Prepaid Insurance 8,000 Total liabilities Equipment 59,000 \ 85,000 Owner's equity Less: Accumulated depreciation 10,000 75,000 Green, Capital 73,000 Total assets Total liabilities and owner's equity What is the total of current liabilities?

____________ is prepared after closing entries are posted to prove that debits equal credits.

company prefers to have a high debt ratio because that means that the company has plenty of current assets to pay current liabilities.

of the following is the correct order of the steps of preparing the work sheet? I. Compute each account's adjusted balance by combining the trial balance and adjustment figures. Enter each account's adjusted amount in the Adjusted Trail Balance columns. II. Enter the account titles and their unadjusted balances in the Trial Balance columns of the work sheet and total the columns. III. Extend (copy) the asset, liability, and owner's equity amounts from the Adjusted Trial Balance to the Balance Sheet columns. Copy the revenue and expense amounts to the Income Statement columns. Total the statement columns. IV. Enter the adjusting entries in the Adjustments columns, and total the amounts. V. On the income statement column, compute net income. Enter net income as the balancing amount on the income statement and balance sheet columns. Total the income statement and balance sheet columns.