Exam 4: Completing the Accounting Cycle

A company's post-closing trial balance has total debits of $40,560 and total credits of $40,650. Accordingly, the company should review for errors in the closing process.

Which of the following statements about a company's operating cycle is not true:

Revenue accounts are temporary accounts that should begin each accounting period with zero balances.

Reversing entries are linked to ________ and ________ that were created by adjusting entries at the end of the prior accounting period.

Palmer Company is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, has prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements, and recording closing and adjusting entries.