Accounting Worksheet Concepts

What is the primary purpose of an accounting worksheet?

• To serve as a mandatory accounting document

• To calculate taxes

• To assist in preparing financial statements before journal entries

• To replace financial statements

Which of the following is NOT a section in the accounting worksheet?

• Unadjusted Trial Balance

• Adjustments

• Income Statement

• Cash Flow Statement

What is the first step in preparing an accounting worksheet?

• Preparing the balance sheet

• Writing the trade name or proprietor's name

• Calculating net income

• Posting adjusting entries

What does the acronym ALODRE stand for in accounting?

• Assets, Liabilities, Owner's Equity, Drawings, Revenues, Earnings

• Assets, Liabilities, Owner's Equity, Drawings, Revenues, Expenses

• Assets, Loans, Owner's Equity, Dividends, Revenues, Expenses

• Assets, Liabilities, Owner's Equity, Dividends, Revenues, Expenses

How is an accrued salary expense recorded in the worksheet?

• Debit Salaries Expense, Credit Cash

• Debit Salaries Expense, Credit Accrued Salaries

• Debit Accrued Salaries, Credit Salaries Expense

• Debit Cash, Credit Salaries Expense

What is the effect of adjusting entries on the worksheet?

• They are used to prepare the cash flow statement

• They finalize the financial statements

• They update the unadjusted trial balance

• They are optional and have no effect

Which financial statement is prepared first from the worksheet?

• Statement of Owner's Equity

• Income Statement

• Cash Flow Statement

• Balance Sheet

What is the starting point for preparing an income statement?

• Summing up assets

• Listing all liabilities

• Calculating net income

• Listing revenues and expenses

How are assets listed on the balance sheet?

• By date of acquisition

• By size

• By liquidity

• Alphabetically

What does a net loss indicate on the income statement?

• Liabilities exceed assets

• Expenses exceed revenues

• Revenues exceed expenses

• Assets exceed liabilities