Which of the following items represents a deferral?
A. Prepaid insurance
B. Wages payable
C. Fees earned
D. Accumulated depreciation
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A company forgot to record accrued and unpaid employee wages of $350,000 at period-end. This would:
A. understate net income by $350,000
B. overstate net income by $350,000
C. have no effect on net income
D. understate assets by $350,000
The temporary account used only in the closing process to hold the amounts of revenues and expenses before the net difference is added or subtracted from the owner’s capital account is called the:
A. Closing account
B. Contra account
C. Nominal account
D. Income Summary account
Which of the following accounts would not be included in a post-closing trial balance?
A. Cash
B. Fees Earned
C. Accumulated Depreciation
D. J. C. Smith, Capital
The resources owned by a business are called:
A. assets
B. liabilities
C. the accounting equation
D. owner’s equity