Exam 3: Adjusting Accounts and Preparing Financial Statements

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

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

The matching principle requires that revenue not be assigned to the accounting period in which it is earned.

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

Net income for a period will be overstated if accrued salaries are not recorded at the end of the accounting period.

Depreciation expense is an example of an accrued expense.

If a company forgot to record depreciation on office equipment at the end of an accounting period,the financial statements prepared at that time would show:

Expenses incurred but unpaid that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:

A broad principle that requires identifying the activities of a business with specific time periods such as months,quarters,or years is the:

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.

Based on the following information,what would be the total on the Credit side of a post- closing trial balance,assuming all accounts have a normal balance? Cash \ 6,754 Dividends \ 2,000 Accounts receivable 13,733 Consulting fees earned 13,718 Office supplies 2,625 Rent expense 3,673 Land 37,153 Salaries expense 6,64 Office equipment 14,535 Telephone expense 560 Accounts payable 6,463 Miscellaneous expense 280 Common stock 54,490 Retained Earnings ?

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of those expenses is the:

Interim financial statements refer to financial reports:

The following are the steps in the accounting cycle.List them in the order in which they are completed: Prepare adjusted trial balance. Post transactions. Prepare an unadjusted trial balance. Journalize transactions. Prepare the financial statements. Close the temporary accounts. Adjust the ledger accounts. Prepare a post-closing trial balance. Analyze transactions.

Which of the following is true of accrued revenues?

Which of the following is the usual final step in the accounting cycle?

Each letter below contains three of the steps found in the accounting cycle.Which presents the given steps in the proper sequence,first to last?

The ______________ refers to the steps in preparing financial statements for users.