Review of the Accounting Cycle

An accounting report that is used to show revenue and expenses is the

Transactions are recorded in a journal in chronological order.

• true

• false

An invoice used as a source document for recording a sale on account.

• debit note

• credit note

• bank statement

• sales invoice

A trial balance is a listing of

• transactions in a journal.

• general ledger accounts and balances.

• the totals from the journal pages.

After closing the ledger, only the permanent accounts have balances.

• True
• False

A balance sheet has four sections: 1) heading 2) assets 3) liabilities and 4) ___________

What is the accounting equation?

The accounts that appear on the post-closing trial balance are

• assets, liabilities, and stockholders' equity

• revenue, expenses, and dividends

• all accounts in the chart of accts

• all temporary accts

Temporary accounts begin each new fiscal period with a 

• debit balance
• credit balance
• zero balance
• balance equal to the net income

The last step in the accounting cycle is to

• record transactions in a journal.

• prepare a work sheet.

• journalize and post closing entries.

• prepare a post-closing trial balance.