Acc Fundamentals Final Exam

The accounting equation must be in balance throughout the accounting process.

• True

• False

Every business transaction affects a minimum of one account.

• True

• False

Unearned revenue is an income statement account.

• True

• False

An adjusted trial balance is a listing of all business accounts that are going to appear in the financial statements at year-end after adjusting entries are made.

• True

• False

The income statement shows the results of business operations for a given period of time.

• True

• False

The most important output of the accounting cycle is the post-closing trial balance.

• True

• False

The excess of expenses over revenues is called net loss.

• True

• False

Allowance for doubtful (uncollectible) accounts is a contra-asset account.

• True

• False

All accounts will be closed at the end of the accounting period.

• True

• False

The worksheet is a working paper that can be used to summarize adjusting entries and the account balances for the preparation of financial statements.

• True

• False