When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step?

Double rule across both amount columns

Write each column's total below the single line.

Add each column to verify that debits equal credits.

Single rule across both amount columns below the last amounts.

Mary is preparing a Balance Sheet. What must she do after she completes the Assets section?

Double rule across the left and right columns

Prepare the Owner's Equity section

If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the work sheet is to debit:

Insurance Expense and credit Prepaid Insurance $2,200

Prepaid Insurance and credit Insurance Expense $2,200

Prepaid Insurance and credit Insurance Expense $1,200

Insurance Expense and credit Prepaid Insurance $1,200

John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT?

Write the balance of each expense account

Calculate the net income or net loss

Record the balance of the revenue account

Double rule across both amount columns

If the beginning prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the work sheet is to debit:

Insurance Expense and credit Prepaid Insurance $1,200.

Prepaid Insurance and credit Insurance Expense $800

Prepaid Insurance and credit Insurance Expense $1,20

Insurance Expense and credit Prepaid Insurance $800.

Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result be?

The Total Assets should equal Total Liabilities plus Owner's Equity

The Total Assets plus Total Liabilities equal Owner's Equity

The Total Assets are less than the Owner's Equity

The Total Assets are greater than the Total Liabilities

If the beginning supplies balance is $2,200, and the ending supplies balance is $700, the correct adjustment on the work sheet is to debit:

Supplies Expense and credit Supplies $1,500

Supplies and credit Supplies Expense $1,500

Supplies and credit Supplies Expense $700

Supplies Expense and credit Supplies $700

If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the work sheet is to debit:

Supplies Expense and credit Supplies $1,500

Supplies and credit Supplies Expense $500

Supplies Expense and credit Supplies $500

Supplies and credit Supplies Expense $1,000

When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement?

Calculate the total of the liabilities

Double rule across the left and right columns

. Samuel was asked to prepare a financial statement to determine whether or not the costs of doing business exceeded the revenue during the past year. What is the LAST Samuel will do in preparing this statement?

Calculate the component percentages

Calculate the net income or net loss

Mary is preparing a Balance Sheet. What must she do after she completes the heading information?

Double rule across the left and right columns

Write the titles of all the liability accounts

Prepare the Owner's Equity section

2.02 Accounting Review

Accounting terms 202...

2.02 - SMED

2.02 The Basics of Taxes

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