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- 1. Multiple Choice
In a worksheet, net income is entered in the following columns:
income statement (Dr) and balance sheet (Dr).
income statement (Cr) and balance sheet (Dr)
income statement (Dr) and balance sheet (Cr).
income statement (Cr) and balance sheet (Cr).
- 2. Multiple Choice
An account that will have a zero balance after closing entries have been journalized and posted is
Service Revenue.
Supplies
Prepaid Insurance
Accumulated Depreciation—Equipment.
- 3. Multiple Choice
When a net loss has occurred, Income Summary is:
debited and Owner’s Capital is credited
credited and Owner’s Capital is debited
debited and Owner’s Drawings is credited
credited and Owner’s Drawings is debited
- 4. Multiple Choice
Which types of accounts will appear in the post-closing trial balance?
Permanent (real) accounts.
Temporary (nominal) accounts
Accounts shown in the income statement columns of a worksheet
None of the above
- 5. Multiple Choice
Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.
TRUE
FALSE
- 6. Multiple Choice
The owner's drawing account is a permanent account whose balance is carried forward to the next accounting period.
TRUE
FALSE
- 7. Open Ended
What is the use of reversing entries?
- 8. Multiple Choice
The use of reversing entries
is a required step in the accounting cycle.
changes the amounts reported in the financial statements.
simplifies the recording of subsequent transactions.
is required for all adjusting entries.
- 9. Multiple Choice
Which of the following is an optional step in the accounting cycle?
Adjusting entries
Closing entries
Correcting entries
Reversing entries
- 10. Poll
WHAT STAGE OF THE ACCOUNTING CYCLE IS THE HARDEST (ON YOUR OPINION) ?
RECORDING PROCESS (Journalizing, Posting, TB Preparation)
ADJUSTING THE ACCOUNTS & ERROR CORRECTION
FINAL STAGE (Worksheet, Closing, Reversing)
- 11. Multiple Choice
Which of the following statements is incorrect concerning the worksheet?
The worksheet is essentially a working tool of the accountant.
The worksheet is distributed to management and other interested parties.
The worksheet cannot be used as a basis for posting to ledger accounts.
Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries.
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