90.2K
Verified Solution
Link Copied!
- A classified balance sheet provides more information about the company to:
A.
creditors
B.
owners
C.
suppliers.
D.
All of the above answers are correct.
2. In what category on a classified balance sheet is Accounts Receivable found?
A.
Current assets
B.
Current Liabilities
C.
Plant, Property and Equipment
D.
Long Term Assets
- Merchandise purchased for resale under the perpetual inventory method is added to:
A.
Merchandise Inventory
B.
Supplies Expense
C.
Purchases.
D.
Sales.
- Administration expenses are found in the Operating Expense section of the income statement.
True
False
- How is Income Summary closed if the company had a net income?
A.
Debit capital; credit withdrawals
B.
Debit Capital; credit Income Summary
C.
Debit Income Summary; credit Capital
D.
Debit Withdrawals; credit Capital
- Closing entries:
A.
Can be done before adjusting entries
B.
are posted to the general ledger.
C.
are done to update the balance sheet.
D.
are done to update Cash.
- The entry to adjust salaries was done twice. This error would cause:
A.
Assets to be understated
B.
liabilities to be overstated.
C.
revenue to be understated.
D.
assets to be overstated.
- Which of the following transactions could cause the Income Summary account to be debited and Capital to be credited?
A.
The business earned a net loss for the period
B.
A credit balance in the Owner's Withdrawals account.
C.
Closed the Owner's Capital account
D.
The business earned a net income for the period.
- The
postclosing
trial balance is prepared from:
A.
The trial balance columns on the worksheet
B.
the income statement column on the worksheet.
C.
the general ledger.
D.
the balance sheet columns on the worksheet.
- Beginning inventory is adjusted by debiting Merchandise Inventory and crediting Income Summary True/ False
Answer & Explanation
Solved by verified expert
