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Multiple choice

An income statement should list expenses in what order?

a) descending order by amount

b) in order of importance to the company's primary mission.

c) alphabetical order.

d) ascending order by amount

2) Steps that begin with analyzing source documents that concludes with the post -closing trail balance are called the

a) adjusting entries

b) posting process

c) closing process

d) accounting cycle

3) which of the following accounts will appear in the balance sheet credit column?

a) depreciation expense

b) Unearned service revenue

c) service revenue

d) pre-paid insurance

4) which account has a balance equal to net income immediately before it closed?

a) the net income account

b) withdrawal account

c) capital account

d) income summary account

Solution Preview

1. b) in order of importance to the companies primary mission.
There is no given order for expense and so each company ...

Solution Summary

The solution explains some multiple choice questions relating to Income Statement order, accounting cycle, balance sheet accounts