ACCT 2000 LSU Exam| 60 Questions with
Verified Answers
the adjusting entry which records the liability (payable) and recognizes the expense
debit expense, credit payable - ✔✔Accrued Expenses adjusting entry shows
after all adjusting entries are journalized and posted and is prepared from the ledger (T-
accounts) - ✔✔When is the trial balance prepared?
is to prove the equality of debit balances and credit balances in the ledger - ✔✔What is
the purpose of the adjusted trial balance?
adjusted trial balance - ✔✔What is the primary basis for the preparation of the
financial statements?
income statement, retained earning statement, balance sheet - ✔✔Which
financial segments are prepared directly from the adjusted trial balance?
at the end of the accounting period companies transfer the temporary account balances to the
permeant stockholders' equity account- Retained Earnings - ✔✔Closing the books
all revenue, expense and dividend accounts - ✔✔Temporary accounts (red)
all assets, liability, and stockholders' equity accounts, R/E - ✔✔Permanent accounts
revenue accounts, expense accounts - ✔✔Which accounts close into income summary?
dividends and income summary - ✔✔Which accounts closes directly into retained earning?
, zero balance in each account - ✔✔When closing a temporary account they produce a
is to prove the equity of the permanent account balances that the company carries forward
not the next accounting period - ✔✔What is the purpose of the post-closing trial balance
sales revenue - cost of goods sold - ✔✔Gross Profit equals
is the total cost of goods sold during the period - ✔✔Cost of goods sold
net income - ✔✔Operating expense equals
cash, performed service, accounts reliable, receive cash - ✔✔Service Company
operating cycle
cash, buy inventory, merchandise inventory, sell inventory, accounts receivable, receive cash -
✔✔Merchandising company operating cycles
merchandising - ✔✔Which operating cycle generally takes longer?
maintained detailed records of the cost of each inventory purchase and
sale records continuously show inventory that should on hand
company determines cost of goods sold each time a sale occurs - ✔✔Perpetual -
scanner method
do not keep detailed records of the goods on hand
out of goods sold determined by count at the end of the accounting period -
✔✔Period-mom/pop
Verified Answers
the adjusting entry which records the liability (payable) and recognizes the expense
debit expense, credit payable - ✔✔Accrued Expenses adjusting entry shows
after all adjusting entries are journalized and posted and is prepared from the ledger (T-
accounts) - ✔✔When is the trial balance prepared?
is to prove the equality of debit balances and credit balances in the ledger - ✔✔What is
the purpose of the adjusted trial balance?
adjusted trial balance - ✔✔What is the primary basis for the preparation of the
financial statements?
income statement, retained earning statement, balance sheet - ✔✔Which
financial segments are prepared directly from the adjusted trial balance?
at the end of the accounting period companies transfer the temporary account balances to the
permeant stockholders' equity account- Retained Earnings - ✔✔Closing the books
all revenue, expense and dividend accounts - ✔✔Temporary accounts (red)
all assets, liability, and stockholders' equity accounts, R/E - ✔✔Permanent accounts
revenue accounts, expense accounts - ✔✔Which accounts close into income summary?
dividends and income summary - ✔✔Which accounts closes directly into retained earning?
, zero balance in each account - ✔✔When closing a temporary account they produce a
is to prove the equity of the permanent account balances that the company carries forward
not the next accounting period - ✔✔What is the purpose of the post-closing trial balance
sales revenue - cost of goods sold - ✔✔Gross Profit equals
is the total cost of goods sold during the period - ✔✔Cost of goods sold
net income - ✔✔Operating expense equals
cash, performed service, accounts reliable, receive cash - ✔✔Service Company
operating cycle
cash, buy inventory, merchandise inventory, sell inventory, accounts receivable, receive cash -
✔✔Merchandising company operating cycles
merchandising - ✔✔Which operating cycle generally takes longer?
maintained detailed records of the cost of each inventory purchase and
sale records continuously show inventory that should on hand
company determines cost of goods sold each time a sale occurs - ✔✔Perpetual -
scanner method
do not keep detailed records of the goods on hand
out of goods sold determined by count at the end of the accounting period -
✔✔Period-mom/pop
