Remaining Units

Question 1

The adjustments made on the worksheet are recorded in the journal and then posted to the general ledger accounts.
Group of answer choices

True

False

Answer 1

True

Question 2

Only nominal (temporary) accounts are contained in an adjusted trial balance.
Group of answer choices

True

False

Answer 2

False

Question 3

The Statement of Owner’s Equity is prepared from the data in the Statement of Financial Position section of the worksheet.
Group of answer choices

True

False

Answer 3

True

Question 4

The balances of the revenue accounts are recorded in the Trial Balance Credit column, the Adjusted Trial Balance Credit column, and the Statement of Financial Position Credit column of the worksheet.
Group of answer choices

True

False

Answer 4

False

Question 5

Preparation of a worksheet eliminates the necessity of preparing a Statement of Profit or Loss and a Statement of Financial Position.
Group of answer choices

True

False

Answer 5

False

Question 6

If a worksheet is prepared at the end of the accounting year,
Group of answer choices

the financial statements are prepared using the worksheet data.

preparation of the financial statements is not required.

the adjusting entries do not need to be journalized.

only a Statement of Financial Position is required.

Answer 6

the financial statements are prepared using the worksheet data.

Question 7

Which of the following statements is FALSE concerning the adjusted trial balance?
Group of answer choices

The adjusted trial balance is prepared after the adjusting entries have been journalized and posted.

The adjusted trial balance lists the account balances segregated by assets and liabilities.

The adjusted trial balance provides the primary basis for the preparation of financial statements.

An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made.

Answer 7

The adjusted trial balance lists the account balances segregated by assets and liabilities.

Question 8

On a worksheet, the adjusted balance of a contra asset account would be extended to
Group of answer choices

the Statement of Financial Position Credit column.

the Statement of Profit or Loss Credit column.

the Statement of Profit or Loss Debit column.

the Statement of Financial Position Debit column.

Answer 8

the Statement of Financial Position Credit column.

Question 9

On the worksheet, the Statement of Financial Position columns should balance
Group of answer choices

before the net income amount is added to the Statement of Financial Position Credit column.

after the net income amount is added to the Statement of Financial Position Debit column.

after the net income amount is added to the Statement of Financial Position Credit column.

before the net income amount is added to the Statement of Financial Position Debit column.

Answer 9

after the net income amount is added to the Statement of Financial Position Credit column.

Question 10

Which of the following statements is FALSE?
Group of answer choices

Net loss is recorded on the worksheet in the Statement of Profit or Loss Credit column and the Statement of Financial Position Debit column.

If an account has a debit balance in the Trial Balance section of the worksheet and there is a credit entry in the Adjustments section, the credit amount is added when computing the balance to be shown in the Adjusted Trial Balance section of the worksheet.

The difference between the total of the Statement of Profit or Loss Debit column and the total of the Statement of Profit or Loss Credit column of the worksheet represents either net income or net loss.

Net income is recorded on the worksheet in the Statement of Profit or Loss Debit column and the Statement of Financial Position Credit column.

Answer 10

If an account has a debit balance in the Trial Balance section of the worksheet and there is a credit entry in the Adjustments section, the credit amount is added when computing the balance to be shown in the Adjusted Trial Balance section of the worksheet.