Accrued taxes payable are generally reported on the balance sheet as a current liability.
True
False
Definition
Term
The most important output of the accounting cycle is the financial statements.
True
False
Definition
Term
The unadjusted, adjusted, and post-closing trial balances are the three types of trial balances prepared in an accounting cycle.
True
False
Definition
Term
Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period.
True
False
Definition
Term
At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses.
True
False
Definition
Term
It is not necessary to post the closing entries to the general ledger.
True
False
Definition
Term
Unearned Fees appear on the
A. balance sheet as a current liability
B. balance sheet in the stockholders’ equity section
C. balance sheet in the current assets section
D. income statement as revenue
Definition
A. balance sheet as a current liability
Term
When a work sheet is complete, the adjustment columns should have
A. total debits greater than total credits if a net income was earned
B. total credits greater than total debits if a net income was earned
C. total debits equal total credits
D. total debits greater than total credits if a net loss was incurred
Definition
C. total debits equal total credits
Term
Which of the following is not an essential part of the accounting records?
A. work sheet
B. chart of accounts
C. ledger
D. journal
Definition
Term
After posting the second closing entry to the income summary account, the balance will be equal to
A. zero
B. revenues for the period
C. the net income or (loss) for the period
D. retained earnings
Definition
C. the net income or (loss) for the period
Term
What is the last account that should be listed in the post-closing trial balance?
A. Income Summary
B. Fees Earned
C. Cash
D. Retained Earnings
Definition
Term
Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
A. Supplies Expense
B. Accumulated Depreciation
C. Unearned Rent
D. Prepaid Insurance
Definition
Term
The balance in the retained earnings account on the work sheet will equal the amount presented in the balance sheet.
True
False
Definition
Term
A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance
Sheet columns.
True
False
Definition
Term
After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet debit and credit columns is net income or net loss.