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WorksheetsFinal Steps in Accounting Review
Total questions: 11
Worksheet time: 9mins
In a worksheet, net income is entered in the following columns:
income statement (Dr) and balance sheet (Dr).
income statement (Cr) and balance sheet (Dr)
income statement (Dr) and balance sheet (Cr).
income statement (Cr) and balance sheet (Cr).
An account that will have a zero balance after closing entries have been journalized and posted is
Service Revenue.
Supplies
Prepaid Insurance
Accumulated Depreciation—Equipment.
When a net loss has occurred, Income Summary is:
debited and Owner’s Capital is credited
credited and Owner’s Capital is debited
debited and Owner’s Drawings is credited
credited and Owner’s Drawings is debited
Which types of accounts will appear in the post-closing trial balance?
Permanent (real) accounts.
Temporary (nominal) accounts
Accounts shown in the income statement columns of a worksheet
None of the above
Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.
TRUE
FALSE
The owner's drawing account is a permanent account whose balance is carried forward to the next accounting period.
TRUE
FALSE
What is the use of reversing entries?
The use of reversing entries
is a required step in the accounting cycle.
changes the amounts reported in the financial statements.
simplifies the recording of subsequent transactions.
is required for all adjusting entries.
Which of the following is an optional step in the accounting cycle?
Adjusting entries
Closing entries
Correcting entries
Reversing entries
WHAT STAGE OF THE ACCOUNTING CYCLE IS THE HARDEST (ON YOUR OPINION) ?
RECORDING PROCESS (Journalizing, Posting, TB Preparation)
ADJUSTING THE ACCOUNTS & ERROR CORRECTION
FINAL STAGE (Worksheet, Closing, Reversing)
Which of the following statements is incorrect concerning the worksheet?
The worksheet is essentially a working tool of the accountant.
The worksheet is distributed to management and other interested parties.
The worksheet cannot be used as a basis for posting to ledger accounts.
Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries.
