Documente Academic
Documente Profesional
Documente Cultură
8. Posting
a. Accumulates the effects of ledger entries and transfers them to the general journal.
b. Is done only for income statement activity because activity related to the statement of
financial position does not require posting.
c. Is done once every year.
d. Transfers journal entries to the ledger accounts.
9. Which of the following is not a principal purpose of unadjusted trial balance?
a. It proves that debits and credits of equal amounts are in the ledger.
b. It is the basis for any adjustments to the account balances.
c. It supplies a listing of open accounts and their balances.
d. It proves that debits and credits were properly entered in the ledger accounts.
11. A trial balance may prove that debits and credits are equal, except
a. An amount could be entered in the wrong account.
b. A transaction could have been entered twice.
c. A transaction could have been omitted.
d. All of these may prove that debits and credits are equal.
16. The adjusting entry for depreciation has the same effect as the adjusting entry for
a. Unearned revenue
b. A prepaid expense
c. An accrued revenue
d. An accrued expense
19. If an expense has been incurred but not yet recorded, the adjusting entry would involve
a. A liability and an asset
b. A liability and a revenue
c. An expense and an asset
d. An asset and a revenue
25. An entity is preparing the annual financial statements based on the adjusted trial balance.
Which financial statement shall be prepared first?
a. Statement of financial position
b. Income statement
c. Retained earnings statement
d. There is no particular order because any financial statement may be prepared first once the
adjusted trial balance is prepared.
26. Which of the following statements best describes the purpose of closing entries?
a. To facilitate posting and taking a trial balance.
b. To determine the amount of net income or net loss for the period.
c. To reduce the balances of temporary accounts to zero so that they may be used to accumulate
the revenue, expenses and dividends of the next period.
d. To complete the record of various transactions that were stared in a prior period
27. Which type of account is always debited during the closing process?
a. Dividends
b. Expense
c. Revenue
d. Retained earnings
28. The closing process
a. Is done each time a transactions takes place and is journalized.
b. Transfers all income statement items to their related statement of financial position account.
c. Post all closing entries to the appropriate general ledger account.
d. All of the choices are correct regarding the closing process.
32. A reversing entry should never be made for an adjusting entry that
a. Accrues unrecorded revenue.
b. Adjusts expired costs from an asset account to an expense account.
c. Accrues unrecorded expenses.
d. Adjusts unexpired costs from an expense account to an asset account.
35. The worksheet for an entity consisted of five pairs of debit and credit columns. The amount of
one item appeared in both the credit column of the income statement section and the debit side
column of the statement of financial position section. What is this item?
a. Net income for the period
b. Beginning inventory
c. Cost of goods sold
d. Net loss for the period