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WorksheetsAccounting Journal and Accounting Cycle
Total questions: 15
Worksheet time: 10mins
What is the purpose of a trial balance?
To calculate the net income of a company
To determine the market value of assets
To ensure that the total debits equal the total credits
To track the inventory levels of a business
How do you calculate the balance of an account in a ledger?
Ignore the credits and only consider the debits for that account.
Subtract all the credits and add all the debits for that account.
Add up all the credits and subtract all the debits for that account.
Multiply all the credits and divide by the debits for that account.
What are the types of adjusting entries?
Accrued income, accrued liabilities, deferred income, and deferred liabilities
Accrued revenues, accrued expenses, deferred revenues, and deferred expenses
Prepaid revenues, prepaid expenses, unearned revenues, and unearned expenses
Fixed revenues, fixed expenses, advanced revenues, and advanced expenses
2. Johnny had receivables of $5 500 at the start of 2010. During the year to 31 Dec 2010 he makes credit sales of $55 000 and receives cash of $46 500 from credit customers. What is the balance on the accounts receivables at 31 Dec 2010?
A. $8 500 Dr
B. $8 500 Cr
C. $14 000 Dr
D. $14 000 Cr
Which of the following are reported in the stockholders' equity section of the balance sheet? ( )
a. revenues and expenses
b. dividends and retained earnings
C. common stock and dividends
d. common stock and retained earnings
Which statement regarding the liabilities and owners’ equity section of balance sheet is False?
a. Payment of Dividend Payable eliminates both the assets and the owners' equity
b. Liabilities are debts or obligations that must be discharged in money or services in the future
c. Owners' equity is a residual claim to the remaining assets after discharge of debts.
d. Balance sheet of corporations should separate Capital Stock and Retained Earnings.
Financial statements can be prepared from
a. the trial balance
b. the adjusted trial balance
C. the journal
d. the ledger
Which of the following statements about a trail balance is incorrect?( )
a. It's primary purpose is to prove the mathematical equality of debits and credits
after posting
b. It uncovers certain errors in the journalizing and posting
c. It is useful in the preparation of financial statements
d. It proves that all transactions have been recorded.
In the closing process all of the revenues and expenses account balances are
transferred to the ( )
a. capital account
b. income summary account
c. retained earnings account
d. dividends account
The post-closing trial balance consists only of ( )
a. Asset and liability accounts
b. temporary accounts
c. revenue and expense accounts
d. permanent accounts
Closing entries result in net income or net loss being transferred to the owner's capital account.
T
F
Closing entries are required at the end of each accounting period to close all ledger accounts.
T
False
Closing entries are necessary so that owner's capital will begin each period with a zero balance.
T
F
odering these steps:
1. Entries are made in the journal
2. A business transaction occurs
3. A trial balance is prepared
4. Entries are made in the ledger
Answer choices
2, 4, 1, 3
2, 1, 4, 3
3, 2, 1, 4
2, 4, 3, 1
Accrual concept is based on :
matching principle
dual aspect principle
cost principle
going concern concept
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