Accounting Cycle Quiz

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

• adjusted trial balance.

• post-closing trial balance.

• the general journal.

• 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

• earned net income for the period.

• an error because debits do not equal credits.

• suffered a net loss for the period.

• to make an adjusting entry.

A worksheet is a multiple column form that facilitates the

• identification of events.

• measurement process.

• preparation of financial statements.

• analysis process.

Computing net income on the worksheet occurs in step

• two.

• three.

• four.

• five.

A worksheet can be thought of as a(n)

• permanent accounting record.

• optional device used by accountants.

• part of the general ledger.

• part of the journal.

The Supplies account appears in which of the following debit columns of the worksheet?

• Trial balance

• Adjusted trial balance

• Statement of financial position

• All of these answer choices are correct.

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?

• They should be inserted in alphabetical order into the trial balance accounts already given.

• They should be inserted in chart of account order into the trial balance already given.

• They should be inserted on the lines immediately below the trial balance totals.

• They should not be inserted on the trial balance until the next accounting period.

When using a worksheet, adjusting entries are journalized

• after the worksheet is completed and before financial statements are prepared.

• before the adjustments are entered on to the worksheet.

• after the worksheet is completed and after financial statements are prepared.

• before the adjusted trial balance is extended to the proper financial statement columns.

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

• Income statement columns

• Adjustments columns

• Trial balance columns

• Adjusted trial balance columns

Adjusting entries are prepared from

• source documents.

• the adjustments columns of the worksheet.

• the general ledger.

• last year's worksheet.