9. Posting income statement activity; activity related to the statement of financial position trasfering all the debits and credits of one entry before moving on to the next entry a. Is a listing of all the accounts and their balances in the order the accounts appear on the a. accumulates the effect is done only for does not require posting. is done only once per year. is done by s of ledger entries and transfers them to the general journal b. c. d. 10. The trial balance statement of financial position. has as its primary purpose to prove (check) that all journal entries were made for the period. c. can be used to uncover errors in journalizing and posting d. is used to prepare the statement of financial position while the general ledger is used to prepare the income statement. The expense recognition principle matches a. b. c. d. 11. customers with businesses. expenses with revenues. assets with liabilities. creditors with businesses. 12. Adjusting entries a. ensure that the revenue recognition and expense recognition principles are followed. b. are necessary to enable the financial statements to conform to International Financial Reporting Standards (IFRS). include both accruals and deferrals d. all of these answer choices are correct If a company fails to make an adjusting entry to record supplies expense, then a. equity will be understated. b. expense will be understated c. 13. c. d. assets will be understated. net income will be understated. 14. Sunset Company showed the following balances at the end of its first year: Cash Prepaid insurance Accounts receivable Accounts payable Notes payable Share capital-ordinary Dividends Revenues Expenses s 8,000 500 2,500 2,000 6,000 1,000 500 15,000 12,500 What did Sunset Company show as total credits on its trial balance? a. $24,500 b. $24,000 c. $23,500 d. $25,000