Posted: January 6th, 2017
List the major categories of accounts that would appear under assets, liabilities, and stockholder’s equity on a classified balance sheet.
- Question 3:
- Proficient:
- Describe, in order, the four basic steps in the closing process performed at the end of each accounting period.
- Explain why the closing process is so important.
- Distinguished:
- After the closing process has been completed, what account types remain open?
- Question 4:
- Proficient:
- Describe how a classified balance sheet is different from a basic unclassified balance sheet.
- List the major categories of accounts that would appear under assets, liabilities, and stockholder’s equity on a classified balance sheet.
- Distinguished:
- Rearrange the following steps in the accounting cycle in proper order:
- Financial statements are prepared.
- An adjusted trial balance is prepared.
- Adjustment data are assembled and analyzed.
- Adjusting entries are journalized.
- Closing entries are journalized and posted to the ledger.
- An unadjusted trial balance is prepared.
- Transactions are posted to the ledger.
- Transactions are analyzed and recorded in the general journal.
- An optional end-of-period work sheet is prepared.
- A post-closing trial balance is prepared.