Exam 4: Completing the Accounting Cycle

When accounts do appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column.

On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

It is necessary to post the closing entries to the general ledger.

Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2010. Prepare the entry required to close the revenue accounts at the end of the period.

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

Round tripping is a fraudulent scheme where business A artificially inflates revenue by lending money to customer B who uses that money to buy products from A.

The income statement should be prepared

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

The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

In the accounting cycle, the last step is

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

The amount of the net income for a period appears on both the income statement and the balance sheet for that period.

The balance in the capital account on the worksheet will equal the amount presented in the balance sheet.

Which of the following account groups are all considered nominal accounts?

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

The Balance Sheet should be prepared

All income statement accounts will be closed at the end of the period.

Accrued expenses are ordinarily listed on the balance sheet as current assets.

The following are steps in the accounting cycle. Of the following, which would be prepared last?