Chapter 6 Financial Statements and the Closing Process

Question 1

liabilities and owner’s equity sections are shown below the assets section

Answer 1

report form balance sheet

Question 2

assets are on the left and owners equity and liabilities are on the right

Answer 2

account form balance sheet

Question 3

include cash and assets that will be turn into cash or consumed within a year

Answer 3

current assets

Question 4

the period of time to purchase supplies

Answer 4

operating cyle

Question 5

also called plant assets or long-term assets

Answer 5

property,plant and equipment

Question 6

are due within a year

Answer 6

current liabilites

Question 7

long-term debt,obligations not to be paid within a year

Answer 7

long-term liabilities

Question 8

should be prepared to prove the equality of the credit and debt balance

Answer 8

post closing trial balance

Question 9

accounts that accumulate information across accounting periods;

Answer 9

permanent accounts

Question 10

accounts that do not accumulate information across account period

Answer 10

temporary accounts