Exam 4: Completing the Accounting Cycle

Journalizing and posting closing entries must be completed before financial statements can be prepared.

A net loss appears on the work sheet in the

Balance Sheet accounts are considered real accounts.

Closing entries

The classified Balance Sheet will subsection the assets section as follows

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

The majority of businesses end their fiscal year on December 31.

The Statement of Owner's Equity should be prepared

The following are steps to the accounting cycle. Of the following, which step should be done first?

Cross-referencing is useful in assuring that the debits and credits are in balance.

The accounting cycle requires three trial balances be done. In what order should they be prepared?

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

The work sheet at the end of July has $5,950 in the Balance Sheet credit column for Accumulated Depreciation. The work sheet at the end of August has $7,600 in the Balance Sheet credit column for Accumulated Depreciation. What was the amount of the depreciation expense adjustment for the month of August?

Owner's Equity is

Selected ledger accounts appear below for Fulton Surveying Services for 2014. Prepare a statement of owner's equity.

The natural business year

During the end-of-period processing which of the following best describes the logical order of this process

Which of the accounts below would be closed by posting a debit to the account?

In a computerized accounting system, a work sheet may be necessary because the software program automatically posts entries to the accounts and prepares financial statements.