41. Reversing entries are an optional bookkeeping procedure.
42. Reversing entries will always affect statement of financial position accounts.
43. The use of reversing entries will change the amounts reported in the statement of financial position.
44. After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.
45. To close net income to Retained Earnings Income Summary is debited and Retained Earnings is credited.
46. In one closing entry, the Dividends account is credited and Income Summary is debited.
47. The post-closing trial balance will contain only statement of equity accounts and statement of financial position accounts.
48. The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.
49. Current assets are listed in the reverse order of liquidity.
50. Current liabilities are obligations that the company is to pay within the coming year.