x.Hmrong>1. After analyzing transactions, the next step would be to post the tra

Question

x.Hmrong>1. After analyzing transactions, the next step would be to post the transactions in the ledger (Points: 1)
       True
       False


2. Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements. (Points: 1)
       True
       False


3. On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount. (Points: 1)
       True
       False


4. Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities. (Points: 1)
       True
       False


5. At the end of the fiscal period, prepaid expenses are reported on the Income Statement as expenses. (Points: 1)
       True
       False


6. Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets. (Points: 1)
       True
       False


7. The income statement is prepared from the adjusted trial balance or the income statement columns on the work sheet. (Points: 1)
       True
       False


8. The balance sheet accounts are referred to as real or permanent accounts. (Points: 1)
       True
       False


9. During the closing process, some balance sheet accounts are closed and end the period with a zero balance. (Points: 1)
       True
       False


10. The income summary account is closed to the owner's capital account. (Points: 1)
       True
       False


11. When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the account title column. (Points: 1)
       True
       False


12. Prepaid Insurance is an example of a current asset. (Points: 1)
       True
       False


13. Land is an example of a plant asset. (Points: 1)
       True
       False


14. Accumulated Depreciation is a permanent account. (Points: 1)
       True
       False


15. The drawing account is a temporary account. (Points: 1)
       True
       False


16. The drawing account is closed to the income summary account. (Points: 1)
       True
       False


17. Assets, liabilities, and owner’s capital are real accounts and do not get closed at the end of the period. (Points: 1)
       True
       False


18. The income summary account is also known as the clearing account. (Points: 1)
       True
       False


19. All income statement accounts will be closed at the end of the period. (Points: 1)
       True
       False

Explanation / Answer

1.   False 2.   True 3.   True 4    True 5    False 6    False 7    True 8    True 9     False 10   False 11   True 12   True 13   True 14   True 15   True 16   False 17   True 18   True 19   True 20   False    6    False 7    True 8    True 9     False 7    True 8    True 9     False 9     False 10   False 11   True 12   True 13   True 14   True 15   True 16   False 17   True 18   True 19   True 20   False 14   True 15   True 16   False 17   True 18   True 19   True 20   False 16   False 17   True 18   True 19   True 20   False 17   True 18   True 19   True 20   False 18   True 19   True 20   False 19   True 20   False

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