71. Which of the following correctly describes the order of the accounting cycle?
A. Post to the general ledger, post the adjusting entries, prepare trial balance, prepare financial statements and post closing journal entries.
B. Post to the general ledger, post the adjusting entries, prepare trial balance, post closing entries and prepare financial statements.
C. Post to the general ledger, post the adjusting entries, prepare financial statements, post closing journal entries and prepare trial balance.
D. Post to the general ledger, post the adjusting entries, post closing journal entries, prepare the trial balance and prepare financial statements.
72. Which of the following is an example of an unearned revenue adjusting entry?
A. Dr. Rent expense, Cr. Prepaid rent
B. Dr. Wages expense, Cr. Wage payable
C. Dr. Unearned revenue, Cr. Revenue
D. Dr. Accounts receivable, Cr. Sales
73. At the end of the accounting period, closing entries are used to reset the balance of the temporary accounts to zero. Into what account are the balances of the temporary accounts transferred?
A. Unearned revenue
B. Retained earnings
C. Capital stock account
D. Net income account
74. If a company reports a loss for the year, the closing entry will result in which of the following?
A. A debit to retained earnings
B. A debit to miscellaneous expense
C. A credit to unearned revenue
D. A debit to capital stock
75. Where is there a chronological record of the journal entries?
A. General journal
B. General ledger
C. T-account
D. Bank statement
76. Which action describes "posting"?
A. Recording the journal entry information in the general journal.
B. Recording the adjusting and closing journal entries on the trial balance.
C. Transferring the information in the journal entry from the general journal to the trial balance
D. Transferring the information in the journal entry from the general journal to the general ledger.
77. Which group of accounts in the general ledger would have opening balances of zero ($0)?
A. Assets
B. Shareholders' equity
C. Income statement
D. Statement of retained earnings
78. Which of the following is a temporary account?
A. Unearned revenues
B. Accumulated depreciation
C. Dividends declared
D. Wages payable
79. Which of the following would be used to reset the income statement accounts to zero at the end of the period?
A. A journal entry
B. An adjusting entry
C. A closing entry
D. A temporary account
80. What four things need to be determined before an economic event can be recorded?