FDNACCT_Review

On the Statement of Profit & Loss, miscellaneous expenses are usually presented as the last item without regard to the peso amount.

• T

• F

The Statement of Financial Position can be presented using either the natural form or functional form.

• T

• F

The work sheet is not considered a part of the formal accounting records.

• T

• F

Closing entries transfer the balances of all temporary accounts to the Owner’s Capital account.

• T

• F

The Income Summary account should always be back to zero balance after the closing process.

• T

• F

After closing entries are posted to the accounts in the general ledger, all asset and liability accounts have a balance of zero.

• T

• F

Reversing entries are journalized at the end of the period.

• T

• F

On a classified Statement of Financial Position, current assets are customarily listed

• 
  in alphabetical order.

• in the order of acquisition.

• 
  in the order of liquidity.

• with the largest peso amounts first.

When a work sheet is complete, the adjustment columns should have

• 
  total credits greater than total debits if a net income was earned

• 
  total debits greater than total credits if a net income was earned

• total debits greater than total credits if a net loss was incurred

• total debits equal total credits

A closing entry is an optional step in the accounting cycle.

• T

• F