QUESTION 11

1. The three financial statements that should be prepared during the accounting cycle are the:

   		Balance sheet, adjusted trial balance, income statement
   		Balance sheet, unadjusted trial balance, Statement of Owners Equity
   		Income statement, adjusted trial balance, Statement of Owners Equity
   		Balance sheet, Income statement, Statement of Owners Equity

QUESTION 12

1. An optional working paper, which is not a required report or an accounting record, but is used to prepare a company's unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements is a(n):

   		Adjusted trial balance
   		Worksheet
   		Post-closing trial balance
   		Unadjusted trial balance
   		General ledger

QUESTION 13

1. The two goals for completing the closing process are:

   		To identify accounts for closing and record the closing entries
   		To journalize and post transactions
   		To post transactions and prepare post-closing trial balance
   		To reset revenues, expenses, and withdrawal account balances to zero at the end of each period, and help summarize an accounting periods revenues and expenses.

QUESTION 14

1. Fill in the Blank: The _____ describes a companys financial position by the types and amounts of assets, liabilities, and equity -- at a point in time.

QUESTION 15

1. Return on Assets is useful in evaluating management, analyzing and forecasting profits, and planning activities.

   True

   False

QUESTION 16

1. The Income Statement:

   		Identifies cash inflows (receipts) and cash outflows (payments) over a period-of-time.
   		Summarize adjusted ledger accounts and amounts
   		Describes a companys revenues and expenses along with the resulting net income or net loss -- over a period-of-time due to earnings activities
   		Resets revenues, expenses, and withdrawal account balances to zero at the end of each period.

QUESTION 17

1. An internal control system consists of the policies and procedures used to:

   		Protect assets and Ensure reliable accounting
   		Urge adherence to company policies and Promote efficient operations
   		All of the above
   		None of the above.

QUESTION 18

1. The cost-benefit principle is the second limitation of _______.

   		Bank reconciliations
   		Petty cash controls
   		Voucher system of controls
   		Internal controls

QUESTION 19

1. The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750. The Adjustments columns shows a credit of $425 for supplies used during the period. The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:

   		$325 debit
   		$325 credit
   		$425 debit
   		$425 credit

QUESTION 20

1. A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:

   		$200 decrease to net income
   		$200 increase to net income
   		$200 different between the debit and credit columns of the Unadjusted Trial Balance
   		An error in the Balance Sheet