1. Which of the following statements is not correct?

A. If the post closing trial balance does not balance, there are errors in the accounting records.

B. The audit trial should be used to trace data through the accounting records to find and correct errors.

C. The balance of the owner's capital account, as reflected on the post closing trial balance, will match the amount reported on the income statement.

D. The balance of the owner's capital account on the adjusted trial balance will ordinarily be different than that reported on the post closing trial balance.

2. Which of the following statements is correct?

A. The Balance Sheet section of the worksheet contains the data that is used to make closing entries.

B. The balance of the owner's drawing account will appear on the post closing trial balance.

C. Closing entries are entered directly on the worksheet.

D. Preparation of the post closing trial balance is the last step in the end-of-period routine.

3. Information in the financial statements provides answers to many questions, including:

A. How much do customers owe the business?

B. What are the business' current and long term plans for expansion?

C. Has the business achieved its net income goal for the year?

D. All of these.

4. The asset, liability, and owner's capital accounts appear on all of the following except the

A. Income statement.

B. Balance sheet.

C. Post closing trial balance.

D. Worksheet.

5. After the worksheet has been completed, the next step in the accounting cycle is to

A. Journalize and post the closing entries.

B. Journalize and post the adjusting entries.

C. Prepare the post closing trial balance.

D. Prepare the financial statements.

6. After the data about transactions have been posted, the next step in the accounting cycle is to

A. Prepare the financial statements.

B. Prepare the post closing trial balance.

C. Prepare the worksheet.

D. Journalize and post the adjusting entries

Answer rating: 100% (QA)

1 A If the post closing trial balance does not balance ther... View the full answer