1. The work sheet provides most of the needed information to prepare which three financial statements? _____ 

2. The income statement contains which two major types of accounts? _____ 

3. The statement of owner's equity adds _____ to the owner's investment and subtracts _____. 

4. Amounts owed that will be paid within a year are called _____. 

5. Expenses are listed on the income statement in the order they appear on the chart of accounts or in descending order by _____ amount. 

6. To find if the owner made any additional investments during the period, we must review the _____ account in the general ledger. 

7. When net income and additional investments are greater than withdrawals, the difference is called a(n) _____ in capital for the month.

8. When the balance sheet is shown in _____ form, liabilities and owner's equity sections are placed below the assets section. 

9. When the balance sheet is shown in _____ form, assets are on the left and liabilities and owner's equity are on the right. 

10. A(n) _____ balance sheet groups similar items together such as current assets and current liabilities. 

11. Cash and assets that will be converted to cash or consumed within a year or the normal operating cycle are called _____ assets. 

12. The _____ is the period of time required to purchase supplies and services and convert them back into cash. 

13. Accounts Payable and Wages Payable are classified as _____ liabilities. 

14. Assets, liabilities, and the owner's capital account accumulate information across accounting periods; they are called _____. 

15. Revenue, expense, and drawing accounts accumulate information for the specific period only, then they go back to _____ balances. 

16. Because revenue, expense, and drawing accounts are closed each accounting period, they are called _____ accounts. 

17. The _____ account is used to summarize the effects of revenue and expense accounts; it is then closed to the capital account. 

18. When closing entries are posted to the general ledger, the word _____ is written in the Item column of each general ledger account affected. 

19. The _____ trial balance only lists permanent accounts. 

20. The _____ begins with analyzing source documents and ends with the post-closing trial balance.  

Answer rating: 100% (QA)

1 The three financial statements that can be prepared from the worksheet are the income statement the statement of owners equity and the balance sheet 2 The income statement contains which two major t... View the full answer