College Accounting - Ch 4

On a classified balance sheet, assets are listed in order of

• liquidity

• amount

• date of purchase

• alphabet

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

• True

• False

Net income​ (loss) is the difference between the total debits and the total credits in the income statement columns of the worksheet.

• True

• False

Permanent accounts are closed at the end of the accounting period.

• True

• False

In the last step of the closing​ process, the​ Owner's Name, Withdrawals account is closed to the​ Owner's Name, Capital account.

• True

• False

Revenue and expense accounts are closed to the Income Summary account.

• True

• False

Only temporary accounts appear on the post−closing trial balance.

• True

• False

In an accounting​ cycle, which of the following steps takes place only at the end of the accounting​ period?

• Analyze transactions as they occur.

• Start with the beginning account balances.

• Journalize transactions that occur.

• Journalize adjusting entries.

Closing journal entries are​ posted:

• after preparing the financial statements.

• before posting the adjusting entries.

• throughout the accounting period.

• after preparing the post closing trial balance.

Adjusting journal entries are​ prepared:

• after preparing the unadjusted trial balance.

• after preparing the adjusted trial balance.

• after preparing the financial statements.

• after posting the closing entries.