Question
1. The work sheet provides most of the needed information to prepare which three financial statements? _____ 2. The income statement contains which two major
1. The work sheet provides most of the needed information to prepare which three financial statements? _____
2. The income statement contains which two major types of accounts? _____
3. The statement of owner's equity adds _____ to the owner's investment and subtracts _____.
4. Amounts owed that will be paid within a year are called _____.
5. Expenses are listed on the income statement in the order they appear on the chart of accounts or in descending order by _____ amount.
6. To find if the owner made any additional investments during the period, we must review the _____ account in the general ledger.
7. When net income and additional investments are greater than withdrawals, the difference is called a(n) _____ in capital for the month.
8. When the balance sheet is shown in _____ form, liabilities and owner's equity sections are placed below the assets section.
9. When the balance sheet is shown in _____ form, assets are on the left and liabilities and owner's equity are on the right.
10. A(n) _____ balance sheet groups similar items together such as current assets and current liabilities.
11. Cash and assets that will be converted to cash or consumed within a year or the normal operating cycle are called _____ assets.
12. The _____ is the period of time required to purchase supplies and services and convert them back into cash.
13. Accounts Payable and Wages Payable are classified as _____ liabilities.
14. Assets, liabilities, and the owner's capital account accumulate information across accounting periods; they are called _____.
15. Revenue, expense, and drawing accounts accumulate information for the specific period only, then they go back to _____ balances.
16. Because revenue, expense, and drawing accounts are closed each accounting period, they are called _____ accounts.
17. The _____ account is used to summarize the effects of revenue and expense accounts; it is then closed to the capital account.
18. When closing entries are posted to the general ledger, the word _____ is written in the Item column of each general ledger account affected.
19. The _____ trial balance only lists permanent accounts.
20. The _____ begins with analyzing source documents and ends with the post-closing trial balance.
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