AC41 Completing the Accounting Cycle Quiz

Arrange the Steps 1-5 of the Accounting cycle

• Analyzing transactions/source documents

• Preparing Worksheet and Adjusting Journal Entries

• Journalizing Entries

• Preparing an Unadjusted Trial Balance

• Posting to the Ledger

Arrange the Steps 6-10 of the Accounting Cycle

• Preparing a Post-closing Trial Balance

• Adjusting Journal Entries are Journalized

• Preparing Reversing Entries

• Preparation of Financial Statements

• Preparing Closing Journal Entries

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.

• True
• False

If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has net income.

• True
• False

No permanent account balances are changed in the closing process.

• True
• False

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

• True
• False

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

• True
• False

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

• True
• False

Closing entries are journalized after adjusting entries have been journalized.

• True
• False

The post-closing trial balance only contains Statement of Financial Position account balances.

• True
• False