31. A worksheet consists of all of the following except:
A. A trial balance
B. Adjusting entries
C. An adjusted trial balance
D. Transaction entries
32. Closing entries would be prepared before:
A. Financial statements are prepared
B. A post-closing trial balance
C. An adjusted trial balance
D. Adjusting entries
33. When a worksheet is prepared which account would not be entered into the income statement columns?
A. Depreciation Expense
B. Unearned Revenue
C. Service Revenue
D. Prepaid Insurance
34. The closing entry for an expense account would consist of a
A. Debit to Income Summary and a credit to the expense account.
B. Debit to the expense account and a credit to Income Summary.
C. Credit to Retained Earnings and a debit to the expense account.
D. Credit to Revenue and a debit to the expense account.
35. The income summary account has debits of $85,000 and credits of $75,000. The company had which of the following:
A. Net income of $10,000
B. Net income of $160,000
C. Net loss of $10,000
D. Net loss of $160,000
36. What types of information must be disclosed in the financial statements?
A. The comprehensive list issued by the FASB.
B. Only information that is determined by management.
C. Non-financial information that is not included in the basic financial statements.
D. Ratio analysis.
37. Dividends declared:
A. Reduce retained earnings.
B. Increase retained earnings.
C. Reduce net income.
D. Increase net income.
38. During the closing process:
A. All income statement accounts are credited to income summary.
B. All income statement accounts are debited to income summary.
C. All revenue accounts are credited and expense accounts are debited.
D. All revenue accounts are debited and expense accounts are credited.
39. A debit balance in the income summary account indicates:
A. An error was made.
B. A Net Profit.
C. A Net Loss.
D. That revenues were greater than expenses.
40. The dividends account should be:
A. Closed to income summary.
B. Closed to retained earnings.
C. Closed only if there is a profit.
D. Not closed at all.