1. The income statement is prepared from: (Points: 2) the adjusted trial balance. the income statement columns of the work sheet. either the adjusted trial balance or the income statement columns of the work sheet. both the adjusted trial balance and the income statement columns of the work sheet. 2. Use the following worksheet to answer the following questions. Based on the preceding trial balance, the entry to close expenses would be: (Points: 2) Debit Wages Expense 63,000 Debit Rent Expense 18,000 Debit Depreciation Expense 15,000 Debit Income Summary 96,000 Debit Expenses 96,000 Credit Income Summary 96,000 Debit Wages Expense 63,000 Debit Rent Expense 18,000 Debit Depreciation Expense 15,000 Credit C. Finley, Drawing 96,000 Debit Income Summary 96,000 Credit Wages Expense 63,000 Credit Rent Expense 18,000 Credit Depreciation Expense 15,000 3. After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $36,678 and the credits of $41,101. This indicates that (Points: 2) neither net income or loss can be calculated because it is found on the income statement the company has a net loss of $4,423 for the period the company has a net income of $4,423 for the period The amounts are out of balance and need to be corrected 4. On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would (Points: 2) increase an expense account decrease a liability account increase an asset account decrease an expense account 5. Which of the items below does not appear on the work sheet? (Points: 2) adjusting entries the unadjusted trial balance closing entries the drawing account 6. Which of the accounts below would appear in the Balance Sheet columns of the work sheet? (Points: 2) Service Revenue Prepaid Rent Supplies Expense None are correct 7. A net loss appears on the work sheet in the (Points: 2) debit column of the Balance Sheet columns credit column of the Balance Sheet columns debit column of the Income Statement columns credit column of the Adjustments columns 8. A work sheet includes columns for (Points: 2) adjusting entries closing entries reversing entries adjusting and closing entries 9. The accounting cycle requires three trial balances be done. In what order should they be prepared? (Points: 2) Post-closing, unadjusted, adjusted Unadjusted, post-closing, adjusted Unadjusted, adjusted, post-closing Post-closing, adjusted, unadjusted 10. The following are steps to the accounting cycle. Of the following, which step should be done first? (Points: 2) Closing entries are journalized and posted to the ledger. Transactions are posted to the ledger. Adjusting entries are journalized and posted to the ledger. Financial statements are prepared.