Term
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Definition
Which of the following is not a temporary account?
A) Sales Revenue
B) Warranty Expense
C) Retained Earnings
D) Interest Expense |
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Term
| Apportion prepaid expenses and unearned revenues to bring accounts up to date |
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Definition
A purpose of closing entries is not to...
A) reduce all temporary accounts to zero
B) update the retained earnings account
C) update the inventory account
D) apportion prepaid expenses and unearned revenues to bring accounts up to date |
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Term
| Sales Returns and Allowances |
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Definition
Which of the following accounts will be reduced to zero by a year end closing entry?
A) accumulated depreciation :PPE
B) Estimated liability under product warranty
C) Allowance for doubtful accounts
D) Sales Returns and allowances |
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Term
| Post-closing trial balance |
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Definition
Which trial balance does not have sales account numbers
A) unadjusted trial balance
B) post closing trial balance
C) adjusted trial balance
D) none of the above |
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Term
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Definition
Which of the following is a measure of how quickly an item can be converted to cash?
A) debt ratio
B) current ratio
C) liquidity
D) Accounting cycle |
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Term
| The worksheet is a document used to summarize data to prepare financial statements |
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Definition
Which of the following statements is true of the worksheet?
A) the worksheet is a ledger.
B) The worksheet is a document used to summarize data to prepare financial statements
C) The worksheet is a financial statement issued to the public to communicate the financial results of a company
D) the worksheet is a journal |
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Term
| post closing trial balance |
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Definition
A list of the accounts and their balances at the end of the period after journalizing and posting the closing entries is called __________.
A) chart of accounts
B) adjusted trial balance
C) post closing trial balance
D) pre closing balance sheet |
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Term
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Definition
Which of the following accounts will be closed by crediting the income summary account?
A) service revenue
B) depreciation expense
C) accounts payable
D) accumulated depreciation |
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