Exam 4: Completing the Accounting Cycle

Land is an example of a plant asset.

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Which of the following is not an essential part of the accounting records?

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

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

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

There are four closing entries. The first one is to close ____, the second one is to close ____, the third one is to close ____, and the last one is to close ____.

On which financial statement will Income Summary be shown?

The income statement is prepared from:

Unearned Fees appear on the

Closing entries are dated in the journal as of

The last step of the accounting cycle is to prepare a post-closing trial balance.

A fiscal year

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Net income for the period is

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

The entry to close the appropriate insurance account at the end of the accounting period is

Indicate whether each of the following would be reported in the section of financial statements identified as (a) current assets, (b) property, plant, and equipment, (c) current liabilities, (d) revenues, or (e) expenses:

The income summary account is also called

The balance in the retained earnings account on the work sheet will equal the amount presented in the balance sheet.