True. A worksheet may be used in preparing financial statements but it does not eliminate the need to prepare financial statements.
True or False. A worksheet is not a journal, and it cannot be used as a basis for posting to the ledger accounts.
After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the
Which of the following statements is incorrect concerning the worksheet?The worksheet is distributed to management and other interested parties.Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries.The worksheet cannot be used as a basis for posting to ledger accounts.The worksheet is essentially a working tool of the accountant.
Service Revenue account will have a zero balance after closing entries have been journalized and posted because it is an income statement or temporary account.
True, after closing entries are posted, a post-closing trial balance will contain only permanent accounts
Which of the following steps in the accounting cycle may be performed more frequently than annually?
journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries.
Cash of $100 received at the time the service was provided was journalized and posted as a debit to Cash $100 and a credit to Accounts Receivable $100. Assuming the incorrect entry is not reversed, the correcting entry is
Whitman Company paid $630 cash on account to a creditor. The transaction was incorrectly recorded as a debit to Cash of $360 and a credit to Accounts Receivable of $360. The correcting entry is
debit to Accounts Payable, $630, debit to Accounts Receivable, $360, and credit to Cash, $990 ($360 + $630).
When Alexander Company purchased supplies for $500, it incorrectly recorded a credit to Supplies for $5,000 and a debit to Cash for $5,000. Before correcting this error
Cash is overstated and Supplies is understated.Supplies should have been debited (increasing supplies) and Cash should have been credited (decreasing cash).
Current liabilities are obligations that a company is to pay within the coming year or its operating cycle, whichever is longer.