Question 35 (2 points) The process of transferring general journal entry information to the ledger is called: 1) Double-entry accounting. 2) Posting 3) Balancing an account. 4) Journalizing.
Question 36 (2 points) A trial balance: 1) Must net to zero. 2) is a list of ledger accounts and their balances at a point in time. 3) Has equal debits and credits. 4) All of the above.
Question 38 (2 points) Which financial statement reports an organization’s financial position at a single point in time? 1) Statement of Owner’s Equity. 2) Statement of Cash Flows. 3) Balance Sheet 4) Income Statement.
Question 39 (2 points) Financial statements are prepared in the following order: 1) Balance sheet, statement of owner’s equity, income statement. 2) Statement of owner’s equity, balance sheet, income statement 3) Income statement, balance sheet, statement of owner’s equity. 4) Income statement, statement of owner’s equity, balance sheet.
Question 40 (2 points) The income statement reports all of the following except: 1) Net income or loss earned by a business. 2) The time period over which the earnings occurred. 3) Revenues earned by a business. 4) Assets owned by a business.
Question 42 (2 points) Adjusting entries: 1) Affect only income statement accounts. 2) Affect only balance sheet accounts. 3) Affect both income statement and balance sheet accounts. 4) Affect cash accounts.
Question 43 (2 points) Assume a company records prepaid expenses in balance sheet accounts when they are paid. The adjusting entry to record use of a prepaid expense is: 1) Increase an asset; increase expense. 2) Decrease a liability, increase revenue. 3) Increase an expense; decrease an asset. 4) Increase an expense; decrease a liability.
Question 44 (2 points) On July 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31? 1) $1.200. O2) $2,400 3) $1.000 4) $1.400.
Question 45 (2 points) On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is: 1) Debit Utilities Expense $215; credit Accounts Payable $215. 2) Debit Accounts Payable $215; credit Utilities Expense $ 215. 3) Debit Prepaid Utilities $215; credit Cash $215. 4) Debit Prepaid Utilities $215; credit Accounts Payable $215.
Answer is 2) Posting
It is recording journal entries in ledger
Answer is 4) All of the above
Trial balance is list of ledger accounts with their ending
balances, trial balance totals are equal i.e. debits equal to
Answer is 3) Balance Sheet
Balance Sheet is prepared as at a particular date.
Answer is 4) Income Statement, Statement of Owner’s Equity, Balance
Net Income is transferred to owners equity and balance of owner’s
equity is recorded in balance sheet.
Answer is 4) Assets owned by a business
Assets owned by business are reported in balance sheet.
Answer is 3) Affects both balance sheet and income statement
Every adjusting entry has a dual effect, one on balance sheet and
one on income statement
Answer is 3) Increase an expense, decrease an asset
Insurance expense = $2400 x 6/12 = $1200
Answer is 1) $1,200
Answer is 1)
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