Question 30 The adjusted trial balance contains information pertaining to: All general ledger accounts Balance sheet accounts only. Asset accounts only. Income statement accounts only.
Question 31 An expense account is normally closed by debiting Income Summary and crediting the expense account. True O False
Question 33 Debit means left side decrease side right side increase side
D Question 32 Financial statements are typically prepared in the following order: Income statement, balance sheet, statement of retained earnings. Balance sheet, income statement, statement of retained earnings.. Balance sheet, statement of retained earnings, income statement. Income statement, statement of retained earnings, balance sheet. Statement of retained earnings, balance sheet, income statement.
AnswerQuestion 30 The adjusted trial balance contains details of all general ledger accounts. The correct answer is the first option. Question 31 Since expense accounts show debit balance, in order to close it, it should be credited. Hence the statement is true. Question 32 Order of preparation of financial statements is: 1. Income statement 2. Statement of retained earnings 3. Balance sheet The correct answer is the fourth option. Question 33 Debit doesn’t always mean increase or decrease. However, in ledger accounts, debit side is the left hand side.
The correct answer is the first option.