Exam 4: Completing the Accounting Cycle

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

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

Prior to adjustment at August 31, 2011, Salary Expense has a debit balance of $298,500. Salaries owed but not paid as of the same date total $2,700.

Indicate whether each of the following would be reported in the financial statements as a(n) (a) current asset, (b) current liability, (c) revenue, or (d) expense:

Use the work sheet for Finley Company to answer the questions that follow. The ending balance in Retained Earnings is

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

Which of the items below does not appear on the work sheet?

Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Explain the differences between a nonclassified balance sheet and a classified balance sheet.

The proper sequence for the steps in the accounting cycle is a follows

Balance sheet accounts

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.

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

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

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

The journal entry to close the Fees Earned, $275, and Rent Revenue, $200, accounts on December 31st during the closing process would be

The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet.

On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

What is the last account that should be listed in the post-closing trial balance?

The retained earnings statement should be prepared