32 The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n) a retained earnings statement b prior period statement c balance sheet d income statement 33 After posting the second closing entry to the income summary account, the balance will be equal to a zero b stockholders' equity c the net income or net loss for the period d revenues for the period 34 The assets and liabilities of a company are $128,000 and $84,000, respectively Stockholders' equity should equal a $84,000 b $212,000 c $128,000 d $44,000 35 Within the United States, the dominant body in the primary development of accounting principles is the a American Institute of Certified Public Accountants (AICPA) b Institute of Management Accountants (IMA) c Financial Accounting Standards Board (FASB) d American Accounting Association (AAA) 36 Which one of the fixed asset accounts listed below will not have a related contra asset account a Land b Building c Office Equipment d Delivery Equipment 37 As time passes, fixed assets other than land lose their capacity to provide useful services To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called a depreciation b matching c equipment allocation d accumulation 38 The account type and normal balance of Prepaid Expense is a asset, debit b expense, debit c liability, credit d revenue, credit 39 Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means a only that the debit dollar amounts equal the credit dollar amounts b all of the information from the journal was correctly transferred to the ledger c only the journal is accurate the ledger may be incorrect d all accounts have their correct balances in the ledger 40 The type of account and normal balance of Unearned Consulting Fees is a revenue, credit b liability, debit c expense, debit d liability, credit

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32. The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a

32. The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

	a.	retained earnings statement
	b.	prior period statement
	c.	balance sheet
	d.	income statement

33. After posting the second closing entry to the income summary account, the balance will be equal to

	a.	zero
	b.	stockholders' equity
	c.	the net income or net loss for the period
	d.	revenues for the period

34. The assets and liabilities of a company are $128,000 and $84,000, respectively. Stockholders' equity should equal

	a.	$84,000
	b.	$212,000
	c.	$128,000
	d.	$44,000

35. Within the United States, the dominant body in the primary development of accounting principles is the

	a.	American Institute of Certified Public Accountants (AICPA)
	b.	Institute of Management Accountants (IMA)
	c.	Financial Accounting Standards Board (FASB)
	d.	American Accounting Association (AAA)

36. Which one of the fixed asset accounts listed below will not have a related contra asset account?

	a.	Land
	b.	Building
	c.	Office Equipment
	d.	Delivery Equipment

37. As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called

	a.	depreciation
	b.	matching
	c.	equipment allocation
	d.	accumulation

38. The account type and normal balance of Prepaid Expense is

	a.	asset, debit
	b.	expense, debit
	c.	liability, credit
	d.	revenue, credit

39. Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

	a.	only that the debit dollar amounts equal the credit dollar amounts
	b.	all of the information from the journal was correctly transferred to the ledger
	c.	only the journal is accurate; the ledger may be incorrect
	d.	all accounts have their correct balances in the ledger