131. The natural business year
A. is a fiscal year that ends when business activities are at its lowest point.
B. is a calendar year that ends when business activities are at its lowest point.
C. is a fiscal year that ends when business activities are at its highest point.
D. is a calendar year that ends when business activities are at its highest point.
132. In the accounting cycle, the last step is
A. preparing the financial statements
B. journalizing and posting the adjusting entries
C. preparing a post-closing trial balance
D. journalizing and posting the closing entries
133. During the end-of-period processing, which of the following best describes the logical order of steps?
A. preparation of adjustments, adjusted trial balance, financial statements
B. preparation of income statement, adjusted trial balance, balance sheet
C. preparation of adjusted trial balance, cross-referencing, journalizing
D. preparation of adjustments, adjusted trial balance, posting
134. The work sheet
A. is an integral part of the accounting cycle.
B. eliminates the need to rewrite the financial statements.
C. is a working paper that is required.
D. is used to summarize account balances and adjustments for the financial statements.
135. Which one of the steps below is not aided by the preparation of the work sheet?
A. preparing the adjusted trial balance
B. posting to the general ledger
C. preparing the financial statements
D. preparing the closing entries
136. A work sheet includes columns for
A. adjusting entries
B. closing entries
C. reversing entries
D. adjusting and closing entries
137. When a work sheet is complete, the adjustment columns should have
A. total credits greater than total debits if a net income was earned
B. total debits greater than total credits if a net loss was incurred
C. total debits greater than total credits if a net income was earned
D. total debits equal total credits
138. The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet
A. is the amount of net income or loss
B. indicates there is an error on the work sheet
C. is not unusual when preparing the work sheet
D. is the net difference between revenue, expenses, and dividends
139. Net income appears on the work sheet in the
A. debit column of the Balance Sheet columns
B. debit column of the Adjustments columns
C. debit column of the Income Statement columns
D. credit column of the Income Statement columns
140. A net loss appears on the work sheet in the
A. debit column of the Balance Sheet columns
B. credit column of the Balance Sheet columns
C. debit column of the Income Statement columns
D. credit column of the Adjustments columns