Which Of The Statements Below Explains The Accounting Cycle

Question: A work sheet is an internal aid which is helpful in preparing financial (statements/reports). It reduces risk of _ (errors/effects) when working with many accounts and adjustments.

Answer: statements, errors

Question: Recall the column headings of a work sheet used to prepare financial statements. Which of the following items are on a worksheet. (Check all that apply.)

Answer: Income Statement columns

Adjustment columns

Unadjusted Trial Balance columns

Adjusted Trial Balance columns

Balance Sheet & Statement of Owner’s Equity columns

Question: Before sorting/transferring amounts to the financial statement columns on a worksheet, the Trial Balance, (Income Statement, Adjustments) and Adjusted Trial Balance columns must (balance, clear).

Listen to the complete question

Answer: adjustments

balance

Question: How can you add multiple adjustments to one account in a work sheet?

Answer: A new line can be added below the affected account in the unadjusted trial balance.

Question: What is a work sheet?

Answer: It can help with adjusting and closing accounts and with preparing financial statements.

Question: What are the benefits of using a work sheet? (Check all that apply.)

Answer: Reduces the risk of errors when working with many accounts and adjustments

Aids in the preparation of financial statements

Links accounts and adjustments to financial statement

Question: What is keying?

Answer: Adding an identifying letter to link the debit and the credit of an adjustment in the Adjustments columns

Question: Explain the required steps to complete a work sheet by placing the following steps in the correct order. (Put the first step at the top.)

Answer: 1- enter unadjusted trial balance

2- enter adjustments

3- prepare adjusted trial balance

4- sort adjusted trial balance amounts to financial statements

5-total financial statement columns

Question: Which of the following is correct regarding a work sheet?

Answer: Each set of column totals must balance on the Trial Balance columns, Adjustments columns and the Adjusted Trial Balance columns.

Question: Which of the following statements is correct regarding a work sheet and the adjustment process?

Answer: Adjusting journal entries are prepared from the Adjustments columns of a work sheet.