A2 Chapter 22 Review

Front

Retained Earnings represents previous years’ earnings that have been distributed to stockholders.

Back

False

Front

The unadjusted trial balance and other financial data are used to plan and record adjusting entries.

Back

True

Front

The issuance of bonds payable is an example of an investing activity.

Back

False

Front

If a company does not use reversing entries, what is the last step in its accounting cycle?

Back

Prepare a post-closing trial balance.

Front

Cash paid for utilities would be listed as a cash outflow in the Investing Activities section on a statement of cash flows.

Back

False

Front

The statement of cash flows is prepared using the accrual basis of accounting.

Back

False

Front

The purchase of store equipment for cash would be listed as a cash outflow in the Investing Activities section on a statement of cash flows.

Back

True

Front

The net income of a corporation increases retained earnings.

Back

True

Front

Is the adjusted trial balance used to prepare financial statements?

Back

True

Front

Receiving cash from interest income is an example of an operating activity.

Back

False