ACC1 2.02 TestBank Questions for Accounting Objective 2.02

Question Answer
When preparing the Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step? Double rule across both account columns or the total column only
Mary is preparing a Balance Sheet. What must she do after she completes the Assets section? Prepare the Liabilities 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
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
If the beginning balance prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the work sheet it to debit: Insurance Expense and credit Prepaid Insurance $1,200
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 the Total Liabilities plus the Owner's Equity
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
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
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? Write the name of the company

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