poa 04.01

Preparing a worksheet involves

• a. two steps.
• b. three steps.
• c. four steps.
• d. five steps.

The adjustments entered in the adjustments columns of a worksheet are

• a. not journalized.
• b. posted to the ledger but not journalized.
• c. not journalized until after the financial statements are prepared.
• d. journalized before the worksheet is completed.

The information for preparing a trial balance on a worksheet is obtained from

• a. financial statements.
• b. general ledger accounts.
• c. general journal entries.
• d. business documents.

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

• a. adjusted trial balance.
• b. post-closing trial balance.
• c. the general journal.
• d. adjustments columns of the worksheet.

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

• a. earned net income for the period.
• b. an error because debits do not equal credits.
• c. suffered a net loss for the period.
• d. to make an adjusting entry.

A worksheet is a multiple column form that facilitates the

• a. identification of events.
• b. measurement process.
• c. preparation of financial statements.
• d. analysis process.

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

• a. Large company with numerous accounts
• b. Small company with numerous accounts
• c. All companies, since worksheets are required under generally accepted accounting principles
• d. Small company with few accounts

A worksheet can be thought of as a(n)

• a. permanent accounting record.
• b. optional device used by accountants.
• c. part of the general ledger.
• d. part of the journal.

The account, Supplies, will appear in the following debit columns of the worksheet.

• a. Trial balance
• b. Adjusted trial balance
• c. Balance sheet
• d. All of these

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

• a. They should be inserted in alphabetical order into the trial balance accounts already given.
• b. They should be inserted in chart of account order into the trial balance already given.
• c. They should be inserted on the lines immediately below the trial balance totals.
• d. They should not be inserted on the trial balance until the next accounting period.