Chapter 5 Flashcards
Book value is…
The difference between the cost of a long-term asset and accumulated depreciation.
A journal entry which occurs from internal operations and is made to update accounts for previously unrecorded items is called an ______ entry.
Adjusting
A form used to gather all data needed at the end of an accounting period to prepare the financial statements is called a ______
Worksheet
If an adjusting entry relating to prepaid insurance is not entered onto the worksheet, assets on the balance sheet…
Will be overstated.
If an account has a debit balance in the Trial Balance section of the worksheet, the amount (that is, the adjusted account balance) that will be entered in the Adjusted Trial Balance section…
Depends on the nature of the entry in the Adjustments section.
If a worksheet is prepared, there is no need to separately prepare a(n)…
Trial balance.
After all account balances have been transferred from the Adjusted Trial Balance section of the worksheet to the financial statement sections, the Income Statement section of the worksheet includes the following totals. The Credit column total is $120,000 and the total of the Debit column is $80,000. The Income Statement section of the worksheet…
Would be completed by entering $40,000 in the Debit column with the words “Net Income” in the Account Name column.
On the worksheet, the Balance Sheet columns should balance…
After the net income amount is added to the Balance Sheet Credit column.
The book value of long-term assets is reported on…
The balance sheet.
