Whenarepermanentaccountsclosed

This preview shows page 50 - 57 out of 80 pages.

When are permanent accounts closed?when closing entries are madeneverwhen entries are adjusted
immediately after they are openedCorrect. Permanent accounts are never closed.问题91 / 1 Which of the following is a proper financial statement?Statement of Retained EarningsDividend StatementAdjusted Trial BalanceBank ReconciliationCorrect. The Statement of Retained Earnings is a statement that shows changes in retained earnings include net income and dividends. The others are not proper financial statements.问题101 / 1 On June 30, Lord Baltimore, Inc. paid Denver Insurance Company $40,000 for one year’s worth of insurance. What is the adjusting entry that should be recorded by Denver Insurance Company on December 31, after 6 of 12 months of insurance had expired?
debit insurance expense, $40,000; credit prepaid insurance, $40,000debit unearned revenue, $20,000; credit revenue, $20,000debit prepaid insurance, $20,000; credit insurance expense, $20,000debit unearned revenue, $40,000; credit insurance expense, $40,000Correct. From the insurer’s perspective, the adjusting entry would be to record revenue and reduce the amount of unearned revenue.问题11 / 1 (True) or (False)? A worksheet does not assist in planning and organizing an audit of financial statements.(True)(False)Correct. A worksheet is not used in financial statements audits.问题21 / 1 
On June 30, Lord Baltimore, Inc. paid Denver Insurance Company $40,000 for one year’s worth of insurance. What is the adjusting entry that should be recorded by Denver Insurance Company on December 31, after 6 of 12 months of insurance had expired?debit insurance expense, $40,000; credit prepaid insurance, $40,000debit unearned revenue, $20,000; credit revenue, $20,000debit prepaid insurance, $20,000; credit insurance expense, $20,000debit unearned revenue, $40,000; credit insurance expense, $40,000Correct. From the insurer’s perspective, the adjusting entry would be to record revenue and reduce the amount of unearned revenue.问题31 / 1 The main purpose of adjusting entries is to ________.record external transactions and events
record internal transactions and eventsrecognize assets purchased during the periodrecognize debts paid during the periodCorrect. Adjustments are not for new transactions but transactions or events that were not recorded at all or properly.问题41 / 1 Before the financial statements can be prepared, the _________ must be completed.reversing journal entriesopening journal entries
adjusting journal entriesclosing journal entriesCorrect. Accurate financial statements can only be made after making adjustments, which then leads to the adjusted trial balance.问题51 / 1 When are permanent accounts closed?when closing entries are madeneverwhen entries are adjustedimmediately after they are opened
Correct. Permanent accounts are never closed.问题61 / 1 Under the accrual basis of accounting, which of the following accounts require adjustments?

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 80 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags
Accounting, Financial Accounting Standards Board, Securities and Exchange Commission, Denver Insurance Company

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture