Learning Objective B-2
1) Which of the following steps comes first?
A) Prepare the financial statements
B) Prepare adjusting journal entries
C) Post the journal entries to the general ledger
D) Close the temporary accounts
2) Which of the following steps comes first?
A) Prepare the financial statements
B) Prepare adjusting journal entries
C) Post the closing entries to the general ledger
D) Close the temporary accounts
3) Which of the following steps comes first?
A) Prepare the financial statements
B) Close the revenue accounts
C) Post the closing entries to the general ledger
D) Close the Dividend account
4) The following is a partial list of the steps in the accounting cycle.
1.Record the transactions in the journal
2.Prepare a postclosing trial balance
3.Record the adjusting entries and post them to the ledger
4.Prepare an unadjusted trial balance
5.Post the journal entries to the ledger
In what order do the above activities usually take place?
A) 4 1 3 5 2
B) 1 5 2 4 3
C) 1 5 4 3 2
D) 3 5 1 4 2
5) Which account has a normal debit balance?
A) Accumulated depreciation
B) Depreciation expense
C) Accounts payable
D) Common stock
6) Which account has a normal debit balance?
A) Accumulated depreciation
B) Accounts payable
C) Dividends
D) Unearned revenues
7) Which account has a normal credit balance?
A) Unearned revenue
B) Depreciation expense
C) Accounts receivable
D) Dividends
8) Which account has a normal credit balance?
A) Accounts receivable
B) Depreciation expense
C) Prepaid rent
D) Unearned revenue
9) Which of the following items are increased with debit entries?
A) Assets and liabilities
B) Assets and revenues
C) Assets and expenses
D) Assets and shareholders' equity
10) Which of the following items is decreased with a debit entry?
A) Liabilities
B) Dividends
C) Expenses
D) Assets