Questions from Financial Accounting

Q: If a company’s revenues are $125,000 and its expenses

If a company’s revenues are $125,000 and its expenses are $113,000, in which financial statement columns of the worksheet will the net income of $12,000 appear? When expenses exceed revenues, in which...

Q: Why is it necessary to prepare formal financial statements if all of

Why is it necessary to prepare formal financial statements if all of the data are in the statement columns of the worksheet?

Q: Identify the account(s) debited and credited in each of

Identify the account(s) debited and credited in each of the four closing entries, assuming the company has net income for the year.

Q: Describe the nature of the Income Summary account and identify the types

Describe the nature of the Income Summary account and identify the types of summary data that may be posted to this account.

Q: What are the content and purpose of a post-closing trial

What are the content and purpose of a post-closing trial balance?

Q: Which of the following accounts would not appear in the post-

Which of the following accounts would not appear in the post-closing trial balance? Interest Payable; Equipment; Depreciation Expense; Dividends; Unearned Service Revenue; Accumulated Depreciation— Eq...

Q: (a) “The steps in the accounting cycle for a

(a) “The steps in the accounting cycle for a merchandising company are different from the accounting cycle for a service company.” Do you agree or disagree? (b) Is the measurement of net income for a...

Q: Explain why the Inventory account will usually require adjustment at year-

Explain why the Inventory account will usually require adjustment at year-end.

Q: What merchandising account(s) will appear in the post-

What merchandising account(s) will appear in the post-closing trial balance?

Q: Why may a trial balance not contain up-to-date

Why may a trial balance not contain up-to-date and complete financial information?