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Accounting Ch. 8

Total questions: 28

Worksheet time: 23mins

Name
Class
Date
1.

A worksheet, including a trial balance, is prepared from the general ledger at this stage: (a)   .

2.

Transactions, from information on source documents, are recorded in a journal at this stage: (a)   .

3.

Source documents are checked for accuracy, and transactions are analyzed into debit and credit parts at this stage: (a)   .

4.

Adjusting entries are journalized and posted to the general ledger at this stage: (a)   .

5.

Financial statements are prepared from the work sheet at this stage: (a)   .

6.

Closing entries are journalized and posted to the general ledger at this stage: (a)   .

7.

A post-closing trial balance of the general ledger is prepared at this stage: (a)   .

8.

Journal entries are posted to the general ledger at this stage: (a)   .

9.

Label the 8 steps to the Accounting Cycle below.

10.

Accounts used to accumulate information from one fiscal period to the next.

a)

Accounting Cycle

b)

Permanent Accounts

c)

Temporary Accounts

d)

Closing Entries

11.

Accounts used to accumulate information until it is transferred to the owner's capital account.

a)

Accounting Cycle

b)

Permanent Accounts

c)

Temporary Accounts

d)

Closing Entries

12.

Journal entries used to prepare temporary accounts for a new fiscal period.

a)

Accounting Cycle

b)

Post-closing Trial Balance

c)

Temporary Accounts

d)

Closing Entries

13.

A trial balance prepared after the closing entries are posted.

a)

Accounting Cycle

b)

Post-closing Trial Balance

c)

Temporary Accounts

d)

Closing Entries

14.

A series of accounting activities included in recording financial information for a fiscal period.

a)

Accounting Cycle

b)

Post-closing Trial Balance

c)

Temporary Accounts

d)

Closing Entries

15.

Permanent accounts are also referred to as (a)   accounts.

16.

(a)   accounts are also referred to as nominal accounts.

17.

Nominal, or temporary accounts, include _______, revenue, owner's drawing, and _______ summary accounts.

(a)  

18.

Real, or permanent, accounts include __________, _________, and owner's capital.

(a)  

19.

Which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?

a)

Business Entity

b)

Accounting Period Cycle

c)

Going Concern

d)

Full Disclosure

20.

The ending account balances of permanent accounts for one fiscal period are:

a)

the same as the prior period's ending balance

b)

equal to the account balance

c)

all equal to zero

d)

the beginning account balances for the next fiscal period

21.

Which of the following accounts is a temporary account?

a)

Cash

b)

Accounts Payable

c)

Clyde Sullivan, Capital

d)

Rent Expense

22.

Which accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue? (Bonus: think about the terms in the question to help you.)

a)

Business entity

b)

Going concern

c)

Matching expenses and revenue

d)

Full disclosure

23.

When revenue is greater than total expenses, resulting in net income, the Income Summary has a

a)

debit balance

b)

credit balance

c)

normal debit balance

d)

normal credit balance

24.

Information needed for recording the closing entries is obtained from the

a)

general ledger accounts' Debit Balance columns

b)

work sheet's Income Statement and Balance Sheet columns

c)

balance sheet

d)

income statement

25.

Income Summary is

a)

an asset account

b)

a liability account

c)

a temporary account

d)

a permanent account

26.

After the closing entries are posted, the Sales account balance should be

a)

equal to the Sales account balance on the adjusted trial balance.

b)

equal to the Sales account balance on the unadjusted trial balance.

c)

zero

d)

same as the beginning balance for the same fiscal period

27.

After the closing entries are posted, the owner’s capital account balances should be the same as shown

a)

on the balance sheet for the fiscal period

b)

in the work sheet’s Balance Sheet Debit column

c)

in the work sheet’s Balance Sheet Credit column

d)

in the work sheet’s Income Statement Debit column.

28.

The accounts listed on a post-closing trial balance are

a)

general ledger accounts with balances after the closing entries are posted

b)

all general ledger accounts

c)

those that have no balances after adjusting and closing entries

d)

those that appear in the work sheet’s Trial Balance columns