1. Which of the following statements about the post-closing trial balance is correct?

The post-closing trial balance proves that all entries have been made correctly and accurately during the accounting period.

The post-closing trial balance is an internal report prepared at the end of the accounting cycle.

The post-closing trial balance will be distributed to investors and other stakeholders along with the financial statements.

The post-closing trial balance is a report prepared before the adjustments and the financial statements to prove that debits equal credits.

2. After the adjustments have been completed, the adjusted balance in the Supplies Expense account represents the cost of supplies:

purchased, but not yet paid for, at the end of the accounting period

purchased during the accounting period

on hand at the end of the accounting period

used during the accounting period

4. If the total amount that should have been debited to Insurance Expense is mistakenly debited instead to Prepaid Insurance, what will be the effect on the financial statements for the year?

Assets will be overstated.

Expenses will be overstated.

Revenues will be overstated.

Stockholders' equity will be understated.

3. What are the effects on the accounting equation from the adjustment for income tax expense accrued, but not paid, at the end of the accounting period?

Total liabilities will increase and total stockholders' equity will increase.

Total liabilities will decrease and total stockholders' equity will increase.

Total liabilities will decrease and total stockholders' equity will decrease.

Total liabilities will increase and total stockholders' equity will decrease.