Nominal accounts are not shown on a post-closing trial balance because:

a. they are directly carried to the income statement.

b. they are not closed at the end of a fiscal year.

c. they are directly carried to the balance sheet.

d. they have zero balances.

The cash basis of accounting records revenue:

a. when it is earned and records expenses when they are paid in cash.

b. when it is earned and records expenses when they are incurred.

c. when it is received in cash and records expenses when they are incurred.

d. when it is received in cash and records expenses when they are paid in cash.

A post-closing trial balance is prepared:

a. after the balance sheet has been prepared.

b. after the journal entries have been posted.

c. after the end of the current fiscal year.

d. after the closing entries have been made.

Speedified Company, a car sales company with $7 million in annual gross receipts, should use:

a. the cash basis of accounting because it is a company.

b. the accrual basis of accounting because it has inventory.

c. the cash basis of accounting for transactions occurring after its annual gross receipts exceed $5 million.

d. the accrual basis of accounting for transactions occurring after its annual gross receipts exceed $5 million.

Taupe, Inc., is a publicly traded corporation. Which of the following forms should it use to file its interim financial statements?

a. Form 11-O

b. Form 10-Q

c. Form 10-O

d. Form 11-Q

Tim Company has the following account balances:

Cash $ 15,000 Accounts Payable $30,000

Equipment 50,000 Tim, Capital 60,000

Supplies 20,000 Prepaid Insurance 5,000

The total of each of the sides of the post-closing trial balance is equal to:

a. $90,000.

b. $85,000.

c. $70,000.

d. $65,000.

Under the accrual basis of accounting, a seller of goods records revenue:

a. when the buyer accepts delivery of the goods.

b. when the manufacturing costs are incurred on the goods.

c. when the payment for the goods is received.

d. at the end of a fiscal period.