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Once journal entries are made in the general journal, they must be transferred to the (This is the second step in the accounting cycle.) Select one: a. the financial statements b. book of 1 st entry c. t-accounts/ ledger accounts d. trial balance When Frank prepared his year-end accounts, he made a calculation error and overstated the value of his closing inventory. What is the effect of this error on the profit for the year and the net assets at the year end? Select one: a. Profit will be overstated and net assets will be understated b. Both profit and net assets will be understated c. Profit will be understated and net assets will be overstated d. Both profit and net assets will be overstated The Prudence concept is the compelling reason for which of the following accounting treatment? Select one: a. Accounting for sales though a portion of which is not received by the balance sheet date. b. Accounting for the personal expenses of the proprietor met by the business as drawings. c. Reporting as an asset the unsold portion of goods purchased for sale. d. Setting up an allowance for receivables not expected to be recovered