Advanced Accounting Chapter 4 Review

The length of time for which a business summarizes and reports financial information is a(an)

• month

• year

• fiscal period

• accounting cycle

A trial balance prepared after the closing entries are posted is

• closing trial balance

• post-closing trial balance

• opening trial balance

• balance sheet trial balance

A merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand is a(n)

• estimated inventory

• running inventory

• periodic inventory

• perpetual inventory

A financial statement that shows changes in a corporation's ownership for a fiscal period is the

• balance sheet

• income statement

• statement of stockholders' equity

• trial balance

A list of vendor accounts, account balances, and total amount due all vendors is a

• schedule of accounts receivable

• schedule of accounts payable

• customer ledger

• vendor ledger

Journal entries recorded to update general ledger accounts at the end of a fiscal period are

• adjusting entries

• closing entries

• general journal entries

• updating entries

A statement showing gross profit for each department is

• departmental statement of gross profit

• departmental margin statement

• income statement

• balance sheet

A columnar accounting form used to summarize the general ledger information needed to prepare financial statements is a

• balance sheet

• ledger sheet

• trial balance

• work sheet

An amount earned by a corporation and not yet distributed to stockholders is called

• capital stock

• dividends

• retained earnings

• undivided earnings

The percentage relationship between one financial statement item and the total that includes that item is a

• ratio

• constant percentage

• component percentage

• declining percentage