Closing and Worksheet (1-10)

1. In preparing a worksheet, a net loss would be computed and entered in the?

(a) Debit column of the income statement columns of the worksheet

(b) Credit column of the income statement in worksheet

(c) In the debit column of the adjusted trial balance

(d) In the credit column of the balance sheet columns of the worksheet

Correct! Wrong!

2. When do revenues affect net income?

(a) In the period during which they are earned

(b) In the period in which their cash equivalent is collected

(c) Both a and b

(d) Neither a nor b

Correct! Wrong!

3. The accountant's worksheet?

(a) Lays the groundwork for formal financial statement preparation

(b) Is a fundamental financial statement

(c) Is prepared at the end of each operating cycle

(d) Provides details necessary for full disclosure and the preparation of footnotes

Correct! Wrong!

4. A worksheet provides total information for preparing?

(a) Income statement

(b) Balance sheet

(c) Financial statement

(d) Adjusting entries

Correct! Wrong!

5. Which of the following is a financial asset?

(a) Inventories

(b) Equipment

(c) Marketable Security

(d) Leasehold land

Correct! Wrong!

6. Which of the following statements is true?

(a) The balance sheet, the income statement and the cash flow statement are totally linked

(b) There are links only between the balance sheet and the cash flow statement

(c) There is no link between the balance sheet, the income statement and the cash flow statement

(d) There are links only between the income statement and the cash flow statement

Correct! Wrong!

7. What is the final stage of the accounting process?

(a) Journal

(b) Financial statement

(c) Ledger

(d) Trial balance

Correct! Wrong!

8. Retain earning increased when the corporation has a?

(a) Profit

(b) Loss

(c) Breakeven point

(d) None of them

Correct! Wrong!

9. In general, the asset side of the balance sheet is designed to summarize balance sheet accounts with?

(a) Credit balances

(b) Debit balances

(c) Neither a. nor b

(d) Both a. and b

Correct! Wrong!

10. Which of the following accounts would not be closed at the end of an accounting period?

(a) Income summary

(b) Profit

(c) Revenue

(d) Capital stock

Correct! Wrong!

1. In preparing a worksheet, a net loss would be computed and entered in the?

2. When do revenues affect net income?

3. The accountant's worksheet?

4. A worksheet provides total information for preparing?

5. Which of the following is a financial asset?

6. Which of the following statements is true?

7. What is the final stage of the accounting process?

8. Retain earning increased when the corporation has a?

9. In general, the asset side of the balance sheet is designed to summarize balance sheet accounts with?

10. Which of the following accounts would not be closed at the end of an accounting period?

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