S-F:4-6. Using the worksheet to prepare financial statements (Learning Objective 2)

Answer the following questions:

Requirements

1. What type of normal balance does the Retained Earnings account havedebit or credit?

2. Which type of income statement account has the same type of balance as the Retained Earnings account?

3. Which type of income statement account has the opposite type of balance as the Retained Earnings account?

4. What do we call the difference between total debits and total credits on the income statement section of the worksheet?

S-F:4-14. Identifying steps in the accounting cycle (Learning Objective 5)

Review the steps in the accounting cycle and answer the following questions:

1. What is the first step?

2. Are any steps optional?

3. Which steps are completed throughout the period?

4. Which steps are completed only at the end of the period?

5. What is the last step in the accounting cycle?