Trial Balance

What is the first step in the accounting cycle?

• Posting to the General Ledger

• Unadjusted Trial Balance

• Record Transactions (Journal Entries)

• Identify and Analyze Transactions

Which of the following is NOT a step in the accounting cycle?

• Financial Statements

• Adjusting Entries

• Closing Entries

• Balance Sheet Analysis

What does the general ledger consist of?

• A list of financial statements

• All accounts needed to prepare financial statements

• A summary of all sales transactions

• Only the transactions of the current period

What is the correct order of accounts when creating the unadjusted trial balance?

• Expense, Revenue, Owners’ Equity, Liability, Asset accounts

• Revenue, Expense, Asset, Liability, Owners’ Equity accounts

• Asset, Liability, Owners’ Equity, Revenue, Expense accounts

• Liability, Asset, Owners’ Equity, Revenue, Expense accounts

What must be ensured when preparing an unadjusted trial balance?

• Total revenues equal total expenses

• Total debits equal the total credits

• Total liabilities equal owners’ equity

• Total assets equal total liabilities

What is the result of incorrect recording or posting in double-entry accounting?

• The trial balance will not balance

• The accounting cycle will restart

• The financial statements will be inaccurate

• The general ledger will be incomplete

Why wouldn't companies like Apple or Netflix report every transaction in their financial statements?

• Because it would be too time-consuming

• Because it would make their financial statements millions of pages long

• Because they only report transactions quarterly

• Because it's not required by law

One benefit of the Unadjusted Trial Balance is that it allows the user to identify all errors that have been made during the period.

• True

• False

Each of the following is a Source Document except ______.

• a transaction

• a check

• a bank statement

• a deposit slip

Which of the following does not represent one of the stages of the accounting cycle?

• record journal entries

• unadjusted trial balance

• transaction reversals

• financial statements