ACC 557 WK 4 Chapter 4 Quiz
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1. A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.
2. If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.
3. If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has net income.
4. It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.
5. The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.
6. The adjusted trial balance columns of a worksheet are obtained by subtracting the adjustment columns from the trial balance columns.
7. The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.
8. Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.
9. The Dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.
10. After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.
11. Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.
12. Closing the Dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.
13. The Dividends account is a permanent account whose balance is carried forward to the next accounting period.
14. Closing entries are journalized...