61 On the work sheet, profit is entered in the Income Statement Credit column and in the Statement of Changes in Equity or Balance Sheet Debit column. 00:59:47 True or False True False 62 If interim financial statements are required, adjusting entries must be journalized and posted to obtain the adjusted data needed for their preparation. 00:59:39 True or False True False Reversing entries are optional. 63 True or False 00:59:31 True False 64 Reversing entries are prepared to adjust accrued assets and liabilities that were created by adjusting entries at the end of the previous reporting period. 8 00:59:23 True or False True False 65 Accumulated Depreciation, Equipment, Accounts Receivable, and Service Revenue would be sorted to which respective columns in completing a work sheet? 8 00:59:15 Multiple Choice O Statement of changes in equity or Balance Sheet- Credit; Statement of changes in equity or Balance Sheet- Debit; and Income Statement- Credit O 65 00:58:39 Statement of changes in equity or Balance Sheet- Debit; Statement of changes in equity or Balance Sheet- Credit; and Income Statement- Credit O Income Statement- Debit; Statement of changes in equity or Balance Sheet- Debit; and VEUIL, CITU Income Statement- Credit. 65 8 00:58:23 Income Statement- Debit; Income Statement- Debit; and Statement of changes in equity or Balance Sheet- Credit Statement of changes in equity or Balance Sheet- Credit; Income Statement- Statement of changes in equity or Balance Sheet- Credit; Income Statement- Debit; and Income Statement- Credit. 66 The Unadjusted Trial Balance columns of the work sheet show the balance in the Office Supplies account at $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns is 8 00:57:58 Multiple Choice o $325 debit O $325 credit $425 debit 66 O $325 debit 8 00:57:46 $325 credit O $425 debit $750 debit $750 credit 67 If, in preparing a work sheet, an adjusted trial balance amount is sorted to the wrong work sheet column, the Balance Sheet columns will balance on completing the work sheet, but with the wrong profit, if the amount sorted in error is 00:57:34 Multiple Choice An expense amount entered in the Balance Sheet Credit column A revenue amount entered in the Balance Sheet Debit column A liability amount entered in the Income Statement Credit column An asset amount entered in the Balance Sheet Credit O An asset amount entered in the Balance Sheet Credit column O A liability amount entered in the Balance Sheet Debit column 68 Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance? 8 00:56:36 Multiple Choice Entering an asset amount in the Income Statement Debit column. Entering a liability amount in the Income Statement Credit column. Entering an expense amount in the Balance Sheet Debit column. Entering a revenue amount in the Balance Sheet Debit column. Entering a liability amount in the Balance Sheet Entering a liability amount in the Balance Sheet Credit column. 69 Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are 8 00:56:01 Multiple Choice o Financial accounts O Temporary accounts Closing accounts Permanent accounts Summary accounts 70 Which of the following statements is incorrect? 00:55:27 Multiple Choice o Permanent accounts are another name for temporary accounts. O Temporary accounts carry a zero balance at the beginning of each accounting period. The Income Summary account is a temporary account. Permanent accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence. Permanent accounts include assets