Question

In the accounting cycle, the last step is

  

a.    preparing the financial statements        

b.    journalizing and posting the adjusting entries        

c.    preparing a post-closing trial balance        

d.    journalizing and posting the closing entries      

  

  

The worksheet:   

a.    is an integral part of the accounting cycle        

b.    eliminates the need to rewrite the financial statements        

c.    is a working paper that is required        

d.    is used to summarize account balances and adjustments for the financial statements      

  

  

     

When a worksheet is complete, the adjustment columns should have

  

a.    total credits greater than total debits if a net income was earned        

b.    total debits greater than total credits if a net loss was incurred        

c.    total debits greater than total credits if a net income was earned        

d.    total debits equal total credits      

  

  

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a worksheet

  

a.    is the amount of net income or loss        

b.    indicates there is an error on the worksheet        

c.    is not unusual when preparing the worksheet        

d.    is the net difference between revenue, expenses, and drawing   

  

An indication that the adjusted trial balance columns are in balance and the worksheet is completed is

  

a.    the word "Total" is written at the bottom of each pair of columns        

b.    each pair of columns is double underlined        

c.    each pair of columns has the totals circled        

d.    the final figures are written in ink      

  

  

Adjusting entries are dated in the journal as of

  

a.    the date they are actually journalized        

b.    the last day of the accounting period        

c.    the first day of the accounting period        

d.    the middle of the accounting period      

Answer 1

1	c.    preparing a post-closing trial balance
	It is made to check the equality of debits and credits after closing entries are being made.
2	d.is used to summarize account balances and adjustments for the financial statements
3	d.    total debits equal total credits
4	d.    is the net difference between revenue, expenses, and drawing
	That is the amount of retained earnings
5	a.    the word "Total" is written at the bottom of each pair of columns
6	b.    the last day of the accounting period