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Questions and Answers
Which of the following is an example of an accrued expense?
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?
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?
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?
What is the purpose of the post closing trial balance?
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What is the difference between the post closing trial balance and the year-end statement of financial position?
What is the difference between the post closing trial balance and the year-end statement of financial position?
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