Accruals and Estimates Quiz
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Questions and Answers

Which of the following is an example of an accrued expense?

  • Accrued income
  • Ending inventory
  • Doubtful accounts (correct)
  • Depreciation

    • What is the purpose of preparing closing entries?

  • To communicate processed information to external users
  • To adjust the year-end physical count of inventory
  • To list general ledger accounts and their balances after closing entries have been made
  • To record and post all nominal accounts to the income summary account (correct)

    • Which financial statement is prepared during the summarizing phase of the accounting process?

  • Statement of changes in equity
  • Statement of cash flows
  • Statement of financial position
  • Income statement or statement of comprehensive income (correct)

    • What is the purpose of the post closing trial balance?

    <p>To list general ledger accounts and their balances after closing entries have been made</p> Signup and view all the answers

    What is the difference between the post closing trial balance and the year-end statement of financial position?

    <p>The post closing trial balance includes valuation accounts like allowances for assets</p> Signup and view all the answers

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