accounting ch 4

Question 1

analyze and record transactions in journal, post transactions to ledger, prepare unadjusted trial balance, assemble and analyze adjustment data, end of period spreadsheet, journalize adjusting entries and post to ledger, prepare adjusted trial balance, financial statements are prepared, closing entries are journalized and posted to ledger, prepare post closing trial balance.

Answer 1

accounting cycle

Question 2

has sections for current assets, property, plant, $ equipment, current liabilities, long term liabilities, and stock holders equity

Answer 2

classified balance sheet

Question 3

cash or assets, property, plant, and equipment, current liabilities; long term liabilities and stock holders equity

Answer 3

current assets

Question 4

report accounting for only 1 period and are not carried forward

Answer 4

nominal assets (temporary accounts)

Question 5

the balances of the accounts reported on the balance sheet are carried forward from year to year: cash, accounts receivable, equipment, accumulated depreciation, accounts payable, capital stock, retained earnings, permanent accounts

Answer 5

real accounts (permanent accounts)

Question 6

the excess of current assets of a business over its current liabilities= current assets-current liabilities

Answer 6

working capital

Question 7

another meants of expressing relationship between current assets and current liabilities. Current ratio = current assets/current liabilities

Answer 7

current ratio

Question 8

is prepared after the closing entries have been posted. Used to verify that the ledger is balanced at the beginning of the next period, temporary accounts do not appear on this balance

Answer 8

post closing trial balance

Question 9

the entries that transfer the balances of temporary accounts to permanent accounts to make them zero balance

Answer 9

closing entries