Exam 4: Completing the Accounting Cycle

Accrued taxes payable are generally reported on the balance sheet as a current liability.

The balance sheet accounts are referred to as real or permanent accounts.

The income statement should be prepared

Tracy Roberts, the sole stockholder of Surfer Dude Supplies, is requesting a $75,000 loan from the bank where you work as a loan officer. He brings to you the following trial balance (or statement of accounts) as of the end of his first year of operations. What adjustments might be necessary before an accurate set of financial statements could be prepared?

The accumulated depreciation account is closed to the income summary account.

Accumulated depreciation appears on the

The proper sequence of steps in the accounting cycle is as follows

The post-closing trial balance differs from the adjusted trial balance in that it

Prepaid Insurance is an example of a current asset.

The most important output of the accounting cycle is the financial statements.

The income summary account is also called

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

The natural business year

The closing process is sometimes referred to as closing the books.

Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?

On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101. This indicates that

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, prepare the closing entries for Perez Roofing Company.