Exam 12: Financial Statements, Closing Entries, and Reversing Entries

Match the terms below with the correct definitions. -The classification that helps to identify which of the firm's debts are paid over a comparatively long period

What would be an appropriate account number for Unearned Revenues?

Assuming Net Sales are $180,000, Cost of Goods Sold is $79,000, Selling Expenses are $28,500, General Expenses are $22,800, and Interest Expense is $2,000, then Net Income is

Which statement is NOT true about the Chart of Accounts?

Subclassifications of operating expenses are

A reversing entry must be made for each adjusting entry.

Working Capital =

Cost of goods sold may be computed by

Selected account balances of Rich and Company as of December 31, the end of its fiscal year, are listed below in alphabetical order. Instructions: Based on the account balances above, prepare a classified balance sheet.

Immediately after a reversing entry to reverse the entry for accrued salaries has been posted, Salary Expense will have a credit balance.

Match the terms below with the correct definitions. -Excess of net sales over the cost of goods sold

A decrease in Sales Discounts results in a decrease in Net Income.

Reversing entries are journalized and posted before adjusting and closing entries are journalized and posted.

Match the terms below with the correct definitions. -Portrays a firm's ability to pay its short-term debts

Examples of current assets are

Match the terms below with the correct definitions. -Excess of gross profit over operating expenses

A net loss will occur if revenues are

A reversing entry could be used if

Which of the following statements is NOT true about closing entries for a merchandising business?

Match the terms below with the correct definitions. -The final figure on the income statement