QUESTION 1

The income statement should be prepared

	a.	after the statement of stockholders' equity and balance sheet
	b.	before the statement of stockholders' equity and balance sheet
	c.	after the statement of stockholders' equity and before the balance sheet
	d.	after the balance sheet and before the statement of stockholders' equity

QUESTION 2

Which of the following is true of closing entries?

	a.	Retained Earnings may be debited or credited.
	b.	Retained Earnings is always credited.
	c.	Retained Earnings is always debited.
	d.	Retained Earnings is not involved in the entry.

QUESTION 3

What is the first account that should be listed in the post-closing trial balance?

	a.	Common Stock
	b.	Cash
	c.	Fees Earned
	d.	Dividends

QUESTION 4

Closing entries are dated in the journal as of

	a.	the last day of the accounting period
	b.	the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period
	c.	the first day of the subsequent accounting period
	d.	the date they are actually journalized, although they are generally prepared after the end of the accounting period

QUESTION 5

The classified balance sheet will show which liability subsections?

	a.	current liabilities and other liabilities
	b.	other liabilities and long-term liabilities
	c.	current liabilities and mid-term liabilities
	d.	current liabilities and long-term liabilities

QUESTION 6

Balance sheet accounts

	a.	represent amounts accumulated during a specific period of time
	b.	are not affected by adjustments
	c.	have zero balances after the closing entries have been posted
	d.	are permanent accounts

QUESTION 7

The balance sheet should be prepared

	a.	before the income statement and the statement of stockholders' equity
	b.	after the income statement and the statement of stockholders' equity
	c.	before the income statement and after the statement of stockholders' equity
	d.	after the income statement and before the statement of stockholders' equity

10 points

QUESTION 8

The statement of stockholders' equity should be prepared

	a.	after the income statement and before the balance sheet
	b.	before the income statement and balance sheet
	c.	before the income statement and after the balance sheet
	d.	after the income statement and balance sheet

QUESTION 9

The Income Statement columns of the end-of-period spreadsheet show that debits total $55,800 and credits total $77,520. What does this information mean to the accountant?

	a.	The accounts have not been updated.
	b.	There is a net loss of $21,720.
	c.	The accounts are out of balance, indicating an error has been made.
	d.	There is a net income of $21,720.

QUESTION 10

Which of these fixed asset accounts will not have a related contra asset account?

	a.	Land
	b.	Delivery Equipment
	c.	Building
	d.	Office Equipment