D: A At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true? a. Total assets will be understated at the end of the current year b. The balance sheet and income statement will be misstated but the statement of owner's 10. equity will be correct for the current year. c. Net income will be overstated for the current year. d. Total liabilities and total assets will be understated. 11. What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance? The Adjusted Trial Balance will show the net income (loss) as an additional account. b. a. Both will need to be in balance in order to continue with the end-of-period processing The Adjusted Trial Balance includes the postings of the adjustments for the period in the c. balance of the accounts. d. The Unadjusted Trial Balance will be used to record the adjustments for the period. 12. The income statement is prepared from: a. the adjusted trial balance. b. the income statement columns of the work sheet c. either the adjusted trial balance or the income statement columns of the work sheet. d. both the adjusted trial balance and the income statement columns of the work sheet The post-closing trial balance differs from the adjusted trial balance in that it a. b. c. d. 13. does not take into account closing entries does not take into account adjusting entries does not include balance sheet accounts does not include income statement accounts The proper sequence for the steps in the accounting cycle is a follows a. 14. analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries b. c. d. 15. The following are steps in the accounting cycle. Of the following, which would be prepared last? a. An adjusted trial balance is prepared b. Transactions are posted to the ledger. c. An unadjusted trial balance is prepared. d. Adjusting entries are journalized and posted to the ledger
