7 - Financial Statement Prep & Closing Entries

A _________ is a summary level report used to convey the financial position and performance of an organization within a specific time period.

• General Ledger

• Chart of Accounts

• Financial Statement

• Adjusted Trial Balance

The __________ is a financial statement that summarizes the total revenues and expenses of an organization, and the resulting profit or loss over a specific accounting period

• Balance Sheet

• Income Statement

• Adjusted Trial Balance

• Cash Flow Statement

What accounts are included in an income statement?

• Assets, Liabilities, Owners’ Equity

• Revenue & Expenses

• Revenue, Expenses, Owners’ Equity

• 
  Assets & Liabilities

If revenues are greater than or equal to expenses, the income statement reports a _________.

• Profit

• Net Expenses

• Net Income

• Net Loss

If revenues are less than expenses, the income statement reports a _________.

• Profit

• Net Expenses

• Net Income

• Net Loss

A(n) __________ is a financial statement that marks a company's financial situation at a moment in time.

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Financial Report

What is the accounting equation?

• Assets = Liabilities + Owners’ Equity

• 
  Assets = Liabilities - Owners’ Equity

• Liabilities = Assets + Owners’ Equity

• 
  Owners’ Equity = Revenue - Expenses

The balance sheet reports financial information __________, in contrast to the income statement which reports financial information ____________.

• 
  at the end of the year, at the end of the accounting period.

• 
  at the end of the accounting period, at the end of the year.

• 
  over a period of time, at a moment in time.

• at a moment in time, over a period of time.

In what order do the accounts appear on the balance sheet?

• Assets, Owners’ Equity, Revenue, Expenses, Liabilities

• Liabilities, Owners’ Equity, Assets

• Assets, Liabilities, Owners Equity

• Owners’ Equity, Revenue, Expenses, Assets, Liabilities

What is the last and most important step of creating a balance sheet?

• Confirm the balance sheet balances

• Create balance sheet headers

• 
  Add Asset Accounts

• Add Liability and Owners’ Equity Accounts