Completing the Accounting Cycle

Question 1

Real or Nominal: Cash

Answer 1

Real

Question 2

Real or Nominal: Revenues

Answer 2

Nominal

Question 3

Real or Nominal: Depreciation Expense

Answer 3

Nominal

Question 4

Real or Nominal: Prepaid Expense

Answer 4

Real

Question 5

Real or Nominal: Spitzer, Capital

Answer 5

Real

Question 6

Real or Nominal: Rent Expense

Answer 6

Nominal

Question 7

Real or Nominal: Prepaid Insurance

Answer 7

Real

Question 8

Real or Nominal: Accounts Receivable

Answer 8

Real

Question 9

Real or Nominal: Drawings

Answer 9

Nominal

Question 10

Real or Nominal: Equipment

Answer 10

Real

Question 11

Which columns of the accounting worksheet show unadjusted amounts?

Answer 11

Trial Balance

Question 12

Which columns of worksheet show profit or loss?

Answer 12

Income Statement

Question 13

Which situation indicates a loss on the income statement?

Answer 13

Total credits exceed total debits

Question 14

The income statement Debit column of the worksheet contains.

Answer 14

Expenses account balances

Question 15

Which part of accounting cycle provides information to help business decide whether to expand its operations?

Answer 15

Financial Statements