Exam 4: Completing the Accounting Cycle

Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.

At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

After posting the second closing entry to the income summary account, the balance will be equal to

After net income is entered on the work sheet, the Balance Sheet debit and credit columns must

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

Describe a classified balance sheet.

On which financial statement will Income Summary be shown?

What is the last account that should be listed in the Post Closing Trial Balance?

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

When preparing the statement of owner's equity, the beginning capital balance can always be found

Accumulated Depreciation appears on the

Balance sheet accounts

Which of the accounts below would not appear in the balance sheet columns of the worksheet?

Which of the accounts below would appear in the Balance Sheet columns of the work sheet?

Prepare an income statement and a statement of owner's equity for the month ended September 30, 2010 from the T-accounts below of Carson Company.

The unadjusted, adjusted, and final trial balances are prepared during the accounting cycle of a period.

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts on December 31st during the closing process would be:

Explain how net income or loss is determined by using the work sheet.

The work sheet is a working paper that accountants can use to summarize adjusting entries and the account balances for the financial statements.