Question 1: 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
Question 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
Question 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
Question 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